E-sourcing is purchasing from your suppliers through a totally electronic transaction. And it’s becoming more and more important every year. This video explains how an electronic purchase order works and describes three different business models buyers and sellers use to connect electronically.
- When did you last buy something? … It's very likely that you bought it on the internet, … like from Amazon, or directly from the company that made it. … Online buying has been growing tremendously … over the past 10 years, … and many companies today measure themselves … by how fast their internet sales are growing. … And that's not just you and me … buying things on the internet. … Business to business commerce is also growing. … For the buyer, this is called eSourcing. … Making company purchases from key suppliers … through a totally electronic transaction. … Buyers and suppliers have been connected electronically … for quite a while, and the software to do this … has grown significantly over the years. … At first, the two companies were connected by EDI, … or Electronic Data Interchange, … which allowed them to exchange information … in the standard format. … Today, purchasing software helps buyers … to automatically place orders over the internet. … Here's how such an electronic order process would work. …
- Explain the purchasing process.
- Define purchase order.
- Describe the intent of a purchasing policy.
- Distinguish types of purchasing structures.
- List the steps of selecting a supplier.
- Identify enablers for success in worldwide sourcing.
- Perform price and cost analysis.
- Measure supply management performance.