The Application And Evaluation Of E-commerce In Company K Indirect Material Procurement

Indirect material procurement is different from direct procurement while the latter one is closely associated with company?s main products.A wide range of goods and services,a large number of suppliers and high gross amount,all of the above makes indirect procurement management more and more important for the enterprises in another way.Thus,improper management may bring a lot of difficulties to the overall operation.In the traditional way,the requestor and purchaser have to spend a lot of time to deal with the purchasing demand and inquiries,yet the process is long with low efficiency.However,following the development of e-commerce technology and with the growing market,especially for the emergence of the e-commerce platforms targeting the indirect material categories,which provide a new direction to the indirect material procurement management for the enterprises.In this paper,the indirect material procurement of Company K has been taken as the research object.Firstly,Kraljic Matrix is adopted to subdivide the indirect materials based on the importance and market supply in order to clearly define the research subject and objective.Secondly,the paper expounds the current process of the traditional way of procurement-offline mode and through phone or email and elaborates the problems in it.On this basis,using e-procurement to replace some of the traditional way has been introduced,suggesting applying the combined mode to improve the indirect material procurement of Company K.After that,the main parameters of procurement evaluation have been defined given consideration to the features of the indirect procurement of Company K to build the model comparison of traditional way and e-procurement.Furthermore,with the main evaluation parameters of procurement efficiency,the simulation software ARENA is employed to create and simulate different purchase mode to obtain the main evaluation indexes,which provide an effective way to the comparison of the efficiency of different purchase modes.