Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

2.2.5 Basics of Supplier Relationship Management and E-Procurement Solutions

Intended learning outcomes: Produce an overview on several categories of e-procurement solutions.

Supplier relationship management (SRM) is, according to [ASCM22], a comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services the enterprise uses.

The goal of SRM is increased efficiency of the processes between the company and its suppliers. Technologies, guidelines, and methods that support the procurement processes are used. At the center are IT platforms and SRM software for automation of processes, from requests for quotations obtaining blanket orders, up to paying and evaluating the performance of the supplier. A further aim is to exchange information on products and processes to be supplied as early as possible. Also falling under the heading of SRM software are e-procurement solutions.

E-procurement refers to electronic, particularly Internet-based, procurement solutions.

E-procurement solutions can be grouped in several categories according to the institutional provider of the application, as shown in Figure (see also [AlHi01], [BeHa00]).

Fig.        Categories of e-procurement solutions (the cylinder stands for electronic procurement solutions of the trading platform).

Continuation in next subsection (2.2.5b).

Overview of different types of e-businesses.
Click on the blue colored terms and get their definition as well as an example.

Course section 2.2: Subsections and their intended learning outcomes

  • 2.2 Strategic Procurement

    Intended learning outcomes: Produce an overview on strategic procurement. Differentiate between traditional market-oriented relationship and Customer-Supplier Partnership. Describe strategic procurement portfolios. Explain strategic selection of suppliers. Present basics of supplier relationship management and e-procurement solutions.

  • 2.2.1 Overview on Strategic Procurement

    Intended learning outcomes: Disclose the supplier structure follows the product structure. Differentiate between direct material, indirect material, commodities, and various demand patterns. Describe various traditional procurement strategies.

  • 2.2.2 Traditional Market-Oriented Relationship

    Intended learning outcomes: Present target area strategies for the traditional market-oriented relationship, and disclose possible supply chain risks entailed.

  • 2.2.2b Customer-Supplier Partnership

    Intended learning outcomes: Identify the concept of customer-supplier partnership and disclose adequate target area strategies, and disclose possible supply chain risks entailed.