Four Major Points Summary on E-Procurement and E-Commerce
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The document summarizes four major points about e-procurement and e-commerce in governmental units. The first point is cataloging, which involves online presentation of procurement information. The second is transactions, allowing electronic transactions between vendors and government. The third is vertical integration connecting different levels of government. The fourth is horizontal integration consolidating functions like accounting, budgeting, and procurement. The document also discusses how e-procurement reduces transaction costs and improves communication between parties involved in procurement. Empirical evidence suggests management support and adoption of e-procurement leads to more online business transactions with government agencies.
Four Major Points Summary on E-Procurement and E-Commerce
- 1. Four Major Points Summary on E-Procurement & E-Commerce 1 Four Major Points Summary on E-Procurement & E-Commerce Effectiveness and Efficiency of these Governmental Units E. Rey Garcia, MPA Candidate University of Texas Rio Grande Valley (UTRGV) College of Liberal Arts Master of Public Affairs-Administration September 27, 2015 Based on the Executive Summary on E-Procurement and E-Commerce, Effectiveness and Efficiency of these Governmental Units, the four major points discussed in the summary and analysis are illustrated in Layne and Lee’s, Model of E-Government Growth, where the different levels of complexities and integration are outlined. The first, cataloging, is the establishment of an online-presence for the government in the procurement function. In this stage, there is an online presentation or information regarding procurement by the agency’s procurement office. This can involve but not limited to, contract postings, contract solicitations, contract award information, bidding information, and requirements and specifications, including details and deadlines for submitting procurement information to the government agency. The second, transactions, is the focus on connecting the procurement sources and allows for electronic transactions with the government agency. In this stage, often called the transaction-based e- procurement, where a live database is available and links so vendors and suppliers can bid for contacts with the agency. The third, vertical integration, is where the local, state, and federal governments work as a consortium by connecting different functions and services of the government. In this stage, a supplier of one-level of government can get connected to other levels of government through a common portal. The fourth, horizontal integration, is where the consolidation of different functions and services, such as accounting, budgeting, payroll, and procurement are integrated into one process. In this stage, a department may order without the
- 2. Four Major Points Summary on E-Procurement & E-Commerce 2 approval of the purchasing department and could simultaneously check for availability of funds from accounting or by accessing the current approved budget via the organization’s networked database, which contains each department’s budget reports. The theoretical reasoning for establishing and adopting e-procurement is evident in the transaction costs literature. The use of open information systems can provide greater levels of information to buyers, and open competitive bidding between vendors and service providers. It reduces costs and improves communications between all involve parties, it exerts pressure on customers to use the system, it encourages organizational support for e-procurement systems, it promotes the connectivity, integration, and compatibility of systems, allowing for the agency focus on strategic issues. Empirical findings indicate that vendors and suppliers willingness to transact online business with the agency are the result of the support of management and the adoption of an e-procurement process.
- 3. Four Major Points Summary on E-Procurement & E-Commerce 3 References Reddick, C. (2012). E-Procurement, E-Commerce, and Online Financial Reporting. In Public Administration and Information Technology. Burlington, MA: Jones & Bartlett Learning