The Evolution of Electronic Procurement
Electronic procurement is not new per se, and its origins can be traced back to as early as the 1960s and 1970s. This chapter goes back in time and reviews how early advances in information technology facilitated purchasing tasks already back then. Applications discussed include electronic data interchange, material requirements planning, manufacturing resource planning, and enterprise resource planning systems. Fundamental to these systems is their ability to facilitate internal and external information flows, and thus enhance strategic decision making. A particular emphasis in this chapter is placed on enterprise resource planning systems, since it is these systems that often form the backbone for electronic procurement systems.
KeywordsElectronic data interchange (EDI) Enterprise resource planning (ERP) systems Material requirements planning (MRP) Manufacturing resource planning (MRP II) Integration Implementation
- Brewer, S. (2013, February 19). The History of EDI. Covalent Networks. Retrieved April 12, 2018, from https://blog.covalentworks.com/edi-history/.
- Business Wire. (2013, February 7). Grupo Posadas Takes up Residence in the Cloud. Retrieved April 13, 2018, from https://www.businesswire.com/news/home/20130207005083/en/Grupo-Posadas-Takes-Residence-Cloud.
- Cavinato, J. L., Dennis, M., Lallatin, C. S., Pohlig, H. M., Sturzl, S. R., Tracey, T., et al. (Eds.). (2015). ISM Glossary of Key Supply Management Terms (6th ed.). Tempe, AZ: Institute for Supply Management®.Google Scholar
- Ganesh, K. Mohapatra, S., Anbuudayasankar, S. P., & Sivakumar, P. (2014). Enterprise Resource Planning: Fundamentals of Design and Implementation. Springer.Google Scholar
- Gross, J. (2011). A Case Study on Hershey’s ERP Implementation Failure: The Importance of Testing and Scheduling. Pemeco Consulting. Retrieved April 23, 2018, from https://www.pemeco.com/a-case-study-on-hersheys-erp-implementation-failure-the-importance-of-testing-and-scheduling/.
- Hayes, F. (2002, June 17). The Story So Far. Computerworld. Retrieved April 12, 2018, from https://www.computerworld.com/article/2576616/e-commerce/the-story-so-far.html.
- Institute for Manufacturing. (2018). Manufacturing Resource Planning (MRP II). University of Cambridge. Retrieved April 13, 2018, from https://www.ifm.eng.cam.ac.uk/research/dstools/mrp-ii/.
- SAP. (2018a). Material Requirements Planning (PP-MRP). Retrieved April 13, 2018, from https://help.sap.com/erp2005_ehp_05/helpdata/EN/a0/84b853dcfcb44ce10000000a174cb4/frameset.htm.
- SAP. (2018b). SAP Supplier Relationship Management (SRM). Retrieved April 13, 2018, from https://www.sap.com/products/supplier-relationship-management.html.
- Schoenherr, T. (2018). Leadership and Transformation in Supply Management. Tempe, AZ: Institute for Supply Management®.Google Scholar
- Schoenherr, T., Venkataramanan, M. A., Soni, A. K., Mabert, V. A., & Hilpert, D. (2005). The “New” Users: Manufacturing SMEs and the Mittelstand Experience. In E. Bendoly & F. R. Jacobs (Eds.), Strategic ERP Extension and Use (pp. 36–51). Stanford, CA: Stanford University Press.Google Scholar
- Tate, W., Fawcett, S., Schoenherr, T., Ashenbaum, B., Carter, C., & Bals, L. (2018). Purchasing & Supply Management: Enhancing Competitiveness and Customer Value. MyEducator.Google Scholar
- TrueCommerce. (2018). A Brief History of EDI. Retrieved April 12, 2018, from https://www.truecommerce.com/resources/what-is-edi/edi-history.
- Webb, J. (2017). What is Supplier Relationship Management? Forbes. Retrieved April 13, 2018, from https://www.forbes.com/sites/jwebb/2017/02/21/what-is-supplier-relationship-management/#1e470a54ec5a.