INFORMATION SYSTEMS @ X

INFO245 The Procurement Process

INFO245

INFORMATION SYSTEMS @ X

Outline
SSB Intro A Basic Procurement Process (manual process) Role of Enterprise Systems in the Procurement Process eProcurement

INFO245

INFORMATION SYSTEMS @ X

Super Skateboard Builders, Inc.

History Product Line Customers Vendors Information Systems

INFO245

INFORMATION SYSTEMS @ X

A Basic Procurement Process

Definition

Requisition to pay All the steps needed to acquire/procure material and pay the vendor B2C vs. B2B commerce Importance of standardized processes in B2B
Physical Flow Document and Data Flow Information Flow

Key Concepts and Assumptions

Conceptual Framework

INFO245

INFORMATION SYSTEMS @ X

Physical / Document Flow

Physical

Document

Trigger: Need a product from office supplies, raw material trading goods Stakeholders: Warehouse (in this case), purchasing, accounting Who is involved in each step? Communication and coordination: physical documents

INFO245

INFORMATION SYSTEMS @ X

Purchase Requisition

INFO245

INFORMATION SYSTEMS @ X

Purchase Order

INFO245

INFORMATION SYSTEMS @ X

Packing List

INFO245

INFORMATION SYSTEMS @ X

A Goods Receipt Document

INFO245

INFORMATION SYSTEMS @ X

A Vender Invoice

INFO245

INFORMATION SYSTEMS @ X

Information Flow
Instance-Level Information

Status of a purchase requisition / order Has a requisition been acted on? Has a PO been created and sent Have goods been received for the requisition / order? When? Where are the goods? If received, has an invoice been received? Paid? If not received, when can we expect the goods? How well is the process doing? How much time does it take on average? Per material? Per vendor? Which vendors are prompt? Who habitually delivers late? What do we buy most often? From with vendor(s)?

Process-Level Information

INFO245

INFORMATION SYSTEMS @ X

Role of enterprise systems in the procurement process

Execute the Process

Create Purchase Requisition Create Purchase Order Receive Shipment Receive Invoice Send Payment

Capture and Store Process Data Monitor the Process

Instance-Level Information Flow Process-Level Information Flow

INFO245

INFORMATION SYSTEMS @ X

Enterprise systems in Procurement

1. Create Purchase Requisition 2. Create Purchase Order 3. Receive Shipment 4. Receive Invoice 5. Send Payment INFO245

INFORMATION SYSTEMS @ X

Purchase Requisition in SAP

INFO245

INFORMATION SYSTEMS @ X

Purchase Order in SAP

INFO245

INFORMATION SYSTEMS @ X

Goods Receipt in SAP

1 6

INFO245

INFORMATION SYSTEMS @ X

Invoice Receipt in SAP

INFO245

INFORMATION SYSTEMS @ X

Vender Payment in SAP Initial Screen

INFO245

INFORMATION SYSTEMS @ X

Vender Payment in SAP Processing

INFO245

INFORMATION SYSTEMS @ X

Process monitoring (Information flow)

Instance level status information

Status of a purchase requisition / order (PO history)

How is the process doing?

Process level aggregate information

INFO245

INFORMATION SYSTEMS @ X

Process-Level Information

INFO245

INFORMATION SYSTEMS @ X

eProcurement
http://www.youtube.com/watch?v=j_e1bKpnfI w What is eVA / eProcurement? What do you think bidding means? What are the benefits to (small) suppliers? What are benefits to the State of Virginia?

INFO245