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• Module overview
• 1. Introduction to knowledge management
  • 1.1 Knowledge management in organisations: Theory and practice
  • 1.2 Information and knowledge
    • 1.2.1 Distinguishing information, data, knowledge and wisdom
    • 1.2.2 Knowledge defined and managed

• 2. Type and structure of knowledge

  • 2.1 Type and structure of knowledge
    • 2.1.1 The structure of purposeful knowledge in an organisation
    • 2.1.2 Explicit and tacit knowledge
  • 2.2 Acquiring knowledge
    • 2.2.1 Sources of knowledge

• 3. Knowledge and learning

  • 3.1 The ability to learn as knowledge
  • 3.2 Types of knowledge and culture, meaning, and learning
  • 3.3. Knowledge management and balanced learning strategies

• 4. A knowledge management cycle

  • 4.1 A Knowledge Management Framework
    • 4.1.1 Stages in KM Cycle
  • 4.2 Dimensions to KM Strategy
    • 4.2.1 Leadership dimension to KM
    • 4.2.2 Governance and policy dimension
    • 4.2.3 Architecture dimension
    • 4.2.4 Absorption dimension
    • 4.2.5 Measurement dimension
  • 4.3 Knowledge as a basis for organising

• 5. Conduct a knowledge audit

  • 5.1 Knowledge audit
    • 5.1.1 Conducting a knowledge audit
    • 5.1.2 The Audit Process

• 6. Organisational Knowledge Capital

  • 6.1 Building an organisational Knowledge Capital framework
    • 6.1.1 IC and KC
    • 6.1.2 The value of knowledge
  • 6.2 Structural capital
  • 6.3 Social capital
  • 6.4 Human Capital defined
    • 6.4.1 Capital resources for organisations
    • 6.4.2 The individual as a capital resource
    • 6.4.3 Ingredients to HCM

• 7. Valuing forms of knowledge

  • 7.1 Valuing forms of knowledge assets
    • 7.1.1 Valuing Intellectual assets
    • 7.1.2 Valuing knowledge as an intangible asset

• 8. Information management systems

  • 8.1 Information management systems
    • 8.1.1 A basic information management framework
    • 8.1.2 Building systems to meet individual and organisational needs
    • 8.1.3 Information guardians versus stakeholders
  • 8.2 Structure and information transfer
    • 8.2.1 Information relevance and timeliness
    • 8.2.2 Information characteristics versus decision types
    • 8.2.3 Storage and retrieval

• 9. Information capture and intelligence gathering

  • 9.1 Information capture and intelligence gathering
    • 9.1.1 Developing a 'wish list'
    • 9.1.2 Finding answers
    • 9.1.3 Integrating intelligence within a knowledge management framework
  • 9.2 Forecasting methods
    • 9.2.1 Issues to consider when forecasting

• 10. IT and E-commerce

  • 10.1 An overview of e-commerce
  • 10.2 The Internet, computer networks and e-commerce
    • 10.2.1 Internet speed, innovation and change
  • 10.3 E-commerce advantages and disadvantages
    • 10.3.1 E-commerce advantages
    • 10.3.2 E-commerce disadvantages and constraints
  • 10.4 The Internet and business
    • 10.4.1 Drivers of e-commerce and Internet growth
  • 10.5 E-commerce and e-business

• 11. IT and supply chain management

  • 11.1 Electronic supply chain management (eSCM)
  • 11.2 E-logistics
    • 11.2.1 Are e-logistics and e-commerce the same thing?
    • 11.2.2 E-logistics blurs older logistic business categories
  • 11.3 E-procurement
  • 11.4 E-fulfilment

11.3 E-procurement

As a critical part of eSCM, the inefficiencies of old procurement practices have had to be abandoned by companies seeking to be competitive. As global markets emerge and efficiencies of e-commerce eventuate, e-procurement has become an essential subset of eSCM.

E-procurement is dealt with here, before e-fulfilment, because it sits on the ‘buy side’ of a business’s supply chain. E-procurement confirms how supply chain integration is influencing businesses. At the e-procurement stage relational databases, internet protocol (IP) and transmission control protocol (TCP) networks and new innovations such as wireless technologies all make it essential that customer facing activities know goods and services are available to meet current and future demand (Lee & Whang, 2001:5). Failure of non-customer facing activities such as purchasing, procurement, manufacturing and such like can result in a failure to fulfil customer orders.

It is therefore essential that accurate and timely data on inventory, orders and supplies are available to support customer-facing e-commerce systems.

As depicted in Figure 11.8, e-procurement may be considered a sub-set of e-commerce and eSCM.

Figure 11.8 E-procurement, an essential component of eSCM

Resolving inefficiencies and reducing costs associated with the purchasing and procurement process have resulted in the implementation by businesses, particularly those engaging in B2B transactions, of e-procurement processes. The development and implementation of e-procurement strategies has in turn gone on to become a cornerstone for successful supply chain management.

Activity 3

Consider the following.

1. In what ways could government be an important player enabling more effective procurement system?
2. List advantages for a number of businesses involved in the supply chain having access to common databases or information management systems.

E-procurement permits the Internet and other data networks to address a number of challenges confronting overall eSCM strategies. Benefits include:

• preventing unauthorised purchasing and procurement activities
• accelerating transaction times
• reducing costs
• more rapid collection of payments
• improving classification and categorisation of all goods and services
• more accurate processing
• integrating procurement processes with tracking and fulfilment processes
• tracking in real-time all expenses and variations
• improving supply side arrangements
• reporting variations in quality or performance against agreed standards

(For an Australian perspective see DoCITA, 2004:7)

 

The shift in focus from procurement management to e-procurement philosophies on performance and cost management issues is confirmed in the Table 11.2.

Table 11. 2 From traditional procurement to e-procurement

Procurement	E-Procurement
minimized contract management staff support commodity specialisation reduce unit prices (buy side) plan supply reduce selling costs increased margin reduce costs for services/supply of existing customers	reduce procurement transaction and automate processes support client account/ category specialisation plan and forecast demand reduce inventories and off-contract buying improve asset disposal options secure new customers reduce distribution costs

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