E procurement in Supply Chain and Operations Management

Theories will be applied in the literature review to aid in the understanding of the topic. The report will also cover the process of supply chain management decision making which will have the three phrases and well explained for clarification. Advantages and disadvantages of e-procurement in the Coca-Cola Company will also be explained in depth. A case study on how the Coca-Cola Company implements e-procurement will be well described, and recommendations are given touching on both the advantages and disadvantages of e-procurement, and lastly, there will be a conclusion to summarize the whole report. Table of Contents EXECUTIVE SUMMARY 2 CHAPTER 1: INTRODUCTION 5 CHAPTER 2: LITERATURE REVIEW 5 2. 3 Transparency spending 8 2. 4 Increased productivity 8 2. 5 Less paperwork 8 2. 6 Improved controls 8 2. 4 Disadvantages of E-procurement in Supply Chain and Operations Management 9 2.

The report will also have a case study explaining how Coca-Cola Company implements e-procurement practice in its daily activities. Recommendations will be included in the report showing the areas which need to be improved, that is the weaknesses of the company which requires to be enhanced to ensure the company is not making loses and a conclusion summarizing the whole report. CHAPTER 2: LITERATURE REVIEW 2. 1 Definition of key terms 2. 1 E-procurement E-procurement which is electronic procurement is also referred to as supplier exchange which is a supply chain practice used to offer services, make purchases and supplies through the internet from a business either to a government, business or consumer (McCue and Roman, 2012). It is also a linkage of companies working to distribute products following a particular trend.

3 Operation Management Operations Management is a part of management which involves shaping and monitoring the course of production and reshaping business tasks in the production system aiming at ensuring responsibility and efficiency of the business (Niknam et al. 2 The Process of Supply Chain Management Decision Making Supply chain management is a procedure which involves planning, instigating, and monitoring the tasks of the supply chain to ensure consumers are satisfied. The process of supply chain management decision making includes the three phases as explained below. 1 Supply Chain Strategy The decisions are taken mostly by the management which studies how the market is to make the company agree on the price of the products which can be lesser or greater depending on the conditions of the market at the given period (Roh et al.

2 Cost reduction E-procurement reduces the cost involved in the order of the goods as paperwork is eliminated; errors and cases of reworking are done away. Leveraging volume applied also lowers the price because the system is structured to perform most of the tasks which lessen the external expenditure. 3 Transparency spending Conducting procurement electronically puts every transaction open to both the supplier and the consumer hence resulting to trust among the two people. It also helps in the proper keeping of records where the written and analyzed reports can be traced easily and tallying with the policies enhanced. 4 Increased productivity Online requisition of products is conducted at a higher speed in electronic procurement than in the earlier procurement done through paperwork where the processing is done fast resulting to saving time (Cardona et al.

2 No face to face contact The supplier and the consumer do not see one another, and this makes the two not know one another, and therefore opportunities for building networks are hard. Building relationships are also hard because the interaction is minimal and this translates to slow growth of the company or the business. 3 Complex E-procurement requires knowledge about the internet and everything else that is done online, and that is why the system operators must have a good understanding about information and technology for the sake of serving the customers well (Vaishnavi and Kuechler, 2015). The skilled personnel who can operate the systems appropriately may be hard to find as most of the people have the basic knowledge of information technology only.

CHAPTER 3: CASE STUDY The Coca-Cola Company has adopted an e-procurement software called Basic Analysis and Security Engine in performing all its tasks from the manufacturing to the delivery to the customers. The Coca-Cola Company has managed to reach to its customers at an extensive network because of adapting e-procurement which has solved many problems since it has proved to be reliable. The cost expenditure of the company has reduced due to the reduction of external spending (Davis and Franks, 2014). The consumers can order company drinks through the internet and supplied within the right time. This has also saved time for both the company and its customers. The company has managed to make transactions at a higher speed in the usage of e-procurement because the time spends on making a purchase is very little.

The company should ensure that the continuous usage of e-procurement because it saves more time which is part of the resources in the business. Saving of time will help the Coca-Cola Company keep on growing by getting more and more customers every day. The transparency achieved through e-procurement also helps the company get trust from its customers which results in the growth of the economy. The cost reduction brought through the adoption of e-procurement has helped the Coca-Cola Company grow at a higher rate because the resources are well used. Therefore the company should stick to the e-procurement in its supply chain for its continuous reduction of cost and productivity increments. Brandenburg, M. , Govindan, K. , Sarkis, J. and Seuring, S. Quantitative models for sustainable supply chain management: Developments and directions.