Title :
Estimating the Benefits and Risks of Implementing E-Procurement
Author :
Trkman, Peter ; McCormack, Kevin
Author_Institution :
Fac. of Econ., Univ. of Ljubljana, Ljubljana, Slovenia
fDate :
5/1/2010 12:00:00 AM
Abstract :
In recent years, organizations have invested heavily in e-procurement technology solutions. However, an estimation of the value of the technology-enabled procurement process is often lacking. Our paper presents a rigorous methodological approach to the analysis of e-procurement benefits. Business process simulations are used to analyze the benefits of both technological and organizational changes related to e-procurement. The approach enables an estimation of both the average and variability of procurement costs and benefits, workload, and lead times. In addition, the approach enables optimization of a procurement strategy (e.g., approval levels). Finally, an innovative approach to estimation of value at risk is shown.
Keywords :
corporate modelling; electronic commerce; procurement; risk analysis; business process simulations; e-procurement benefits; e-procurement costs; lead times; organizational changes; procurement strategy; technology-enabled procurement process; value-at-risk estimation; workload; Analytical models; Companies; Costs; Design automation; Electronic mail; Helium; Procurement; Reactive power; Technology management; Web and internet services; Business process modeling; e-procurement; methodological approach; procure-to-pay (P2P) process; simulations; value at risk (VaR);
Journal_Title :
Engineering Management, IEEE Transactions on
DOI :
10.1109/TEM.2009.2033046
