Develop the new e-procurement process in table 2.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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Problem 6DRQ
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1. Table 1 illustrates a typical traditional procurement process. This process is for relatively low-value items that do not need authorization by a senior manager. Develop the new e-procurement process in table 2.
Table 1: Process flow analysis for traditional procurement (normal cycle time 5.5)
Task description
Time
1. Search for goods
1 hour
2. Fill in paper requisition
10 min
3. Send to buyer
1 hour
4. In buyers in tray
112 hour
5. Buyer enter order number
10 min
6. Buyer authorizes order
10 min
7. Buyer print order
10 min
8. Order copies to supplier and goods-in
1 hour
9. Delivery from supplier
1 hour
10. Order copy to accounts
1 hour
11. Three-way invoice match
1 hour
12. Cheque payment
10 min
Transcribed Image Text:Table 1: Process flow analysis for traditional procurement (normal cycle time 5.5) Task description Time 1. Search for goods 1 hour 2. Fill in paper requisition 10 min 3. Send to buyer 1 hour 4. In buyers in tray 112 hour 5. Buyer enter order number 10 min 6. Buyer authorizes order 10 min 7. Buyer print order 10 min 8. Order copies to supplier and goods-in 1 hour 9. Delivery from supplier 1 hour 10. Order copy to accounts 1 hour 11. Three-way invoice match 1 hour 12. Cheque payment 10 min
Table 2 : Process flow analysis for new e-procurement (normal cycle time 1.5)
Task description
time
1.
2.
3.
4.
5.
Transcribed Image Text:Table 2 : Process flow analysis for new e-procurement (normal cycle time 1.5) Task description time 1. 2. 3. 4. 5.
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