YAN- Transforming the Procurement Operation with Information Technology 1 TRANSFORMING THE PROCUREMENT OPERATION

Electronic procurement transforms the traditional purchasing process for most organizations. It streamlines and automates the logistics in procurement from requisition, sourcing, approval to goods receipt. Many companies select to begin the transformation from operation resources management (ORM), which focuses on indirect materials acquisitions, to enjoy the efficiency gains, shorter cycle time and procurement cost savings. The Hong Kong SAR Government has taken the initiatives to adopt e-procurement as a leading example to the business community. Electronic Tendering Service (ETS) was introduced in April 2000 to promote the use of Information Technology in public procurement. In this paper, we will illustrate how e-commerce and e-procurement have emerged to influence the business environment. We will describe the Hong Kong SAR Government’s efforts to transform its traditional procurement process and how GSD and its suppliers benefit from ETS. We will also discuss the security issue in transacting through the Internet as well as user’s concerns of using the system. The paper will be concluded by describing the future opportunities of electronic tendering system especially after China’s accession to the World Trade Organization (WTO)