Supplier's Price Evaluation in the Purchasing Process
Le, Tuyen Jr (2022)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022121429683
https://urn.fi/URN:NBN:fi:amk-2022121429683
Tiivistelmä
The purchasing process has been increasingly modernized over time, and the management of supplier quotes became more complex. This requires businesses to invest effectively in the Supplier’s Price Evaluation (SPE for short). SPE is a familiar concept in practical purchasing, but references to it are scarce due to its academic unpopularity. SPE was discovered as a pioneer activity in the TCO analysis. It provides a visual view of the purchase price and conducts an assessment by breaking down the price structure and comparing the price components in the relevant market. Thereby, there is a basis for negotiating better prices and increasing savings for the company. SPE research did not delve into the cost issue, it is just a premise for a perfect cost analysis after gaining a good view of the purchase price.
The study's objectives determined the SPE approaches of Vietnamese firms, SPE's obstacles, and the applicable solutions for improvement. Although the knowledge base on SPE had many limitations, the empirical results provided a specific conclusion for the study. A qualitative method was applied to clarify the research object through interviews with Vietnamese companies. Firm representatives from diverse industries reinforced the theory of the three most common SPE methods: purchasing positioning, supplier benchmarking, and market research. Solutions were also proposed such as the SAP Ariba system, Coupa, eAuctions, and Excel programs that combine VBA and SQL for a more efficient SPE implementation.
Every company has its approaches and solutions for SPE to fit the long-term budget. ERP solutions like SAP Ariba and Coupa are usually used by large enterprises as it facilitates operating and managing all business functions. Meanwhile, small companies often outsource simpler software to digitize their purchasing procedure, which is built on Excel and VBA platforms.
The study's objectives determined the SPE approaches of Vietnamese firms, SPE's obstacles, and the applicable solutions for improvement. Although the knowledge base on SPE had many limitations, the empirical results provided a specific conclusion for the study. A qualitative method was applied to clarify the research object through interviews with Vietnamese companies. Firm representatives from diverse industries reinforced the theory of the three most common SPE methods: purchasing positioning, supplier benchmarking, and market research. Solutions were also proposed such as the SAP Ariba system, Coupa, eAuctions, and Excel programs that combine VBA and SQL for a more efficient SPE implementation.
Every company has its approaches and solutions for SPE to fit the long-term budget. ERP solutions like SAP Ariba and Coupa are usually used by large enterprises as it facilitates operating and managing all business functions. Meanwhile, small companies often outsource simpler software to digitize their purchasing procedure, which is built on Excel and VBA platforms.