Optimisation of procurement processes by the example Sanitärtechnik Eisenberg

Seminar paper from the year 2010 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,0, Prifysgol Cymru University of Wales, course: Managing Operations, language: English, abstract: Due to the in other areas already largely exhausted rationalisation and the pressure from more and more intensive growing global competition, the copmanys are looking for possible optimization and cost reduction. E-procurement is a tool which remains many possibilities for optimisation in purchasing processes. Electronic purchasing systems support the processes of classic procurement in various ways. This can improve many weak points and cut costs. The time-consuming procedure of obtaining approval in accordance with company criteria often leads to significant delays in purchasing. Electronic payment support, with automated invoicing control or with the credit-note procedure, also offers a substantial optimisation potential.

The 1945 founded Sanitärtechnik Eisenberg GmbH has to deal with strong growth together with international competition, so the management called out the strategy to reduce costs. Due to the inefficiencies in the processes concerning the procurement an e-procurement project was planned. According to the company objectives, optimised and standardized processes, the reduction of the procurement costs and the clearance of buyeer supports were the factors conducive to the successful implementation of this programme.

E-procurement makes it possible to significantly reduce expenditure in purchasing and to achieve cost savings. In many companies the purchasing process demonstrates potentials for optimisation that could be more clearly focussed. The Sanitärtechnik Eisenberg GmbH procurement project indicates this also. The present work presents the opportunities and potentials that electronic purchasing can offer a company. The potential applications of e-procurement presented here will result in significant streamlining in the purchasing processes at Sanitärtechnik Eisenberg, and thus all the desired objectives will be met.