Internet Technology as Part of Company - Essay Example

SuggestionsI recommend that the company uses internet technology to streamline the purchase of materials. This will lead to a reduction in the cost of procurement. This would lead to less time being used for this process. The manager would have more time to spend on other company businesses rather than being tied up with immaterial purchases. No orders may be lost because it would result in less paper being used in the process. This system would also help to reduce the number of late deliveries.

Qatar Petroleum would computerize its procedures so that there will not have to be too many manual interventions. In this way, the company may be able to deal with many suppliers instead of a few. The system could compare prices and determine which is best. The company may also be able to benefit from quantity discounts in this wayThe procurement system could be so set up that orders are triggered by the inventory system as soon as the re-order level is reached. This system would notify someone that an order needs to be made urgently.

Transactions are automatically approved based on business rules and so there is no detailed approval process. The order will be transmitted through a central hub. Everything stage of the process would be done online. ConclusionAn e-procurement system is a must for a company that is seeking to reduce the cost of purchasing. Companies are on an ongoing drive to reduce cost and this is one sure way to do so. Qatar Petroleum can benefit from implementing this system.