Design and development of agent-based procurement system to enhance business intelligence

  • Authors:

  • C. K. M. Lee;H. C. W. Lau;G. T. S. Ho;William Ho

  • Affiliations:

  • Division of Systems and Engineering Management, School of Mechanical and Aerospace Engineering, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798, Singapore;Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong;Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong;Operations and Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, United Kingdom

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2009

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Abstract

The purpose of this research is to propose a procurement system across other disciplines and retrieved information with relevant parties so as to have a better co-ordination between supply and demand sides. This paper demonstrates how to analyze the data with an agent-based procurement system (APS) to re-engineer and improve the existing procurement process. The intelligence agents take the responsibility of searching the potential suppliers, negotiation with the short-listed suppliers and evaluating the performance of suppliers based on the selection criteria with mathematical model. Manufacturing firms and trading companies spend more than half of their sales dollar in the purchase of raw material and components. Efficient data collection with high accuracy is one of the key success factors to generate quality procurement which is to purchasing right material at right quality from right suppliers. In general, the enterprises spend a significant amount of resources on data collection and storage, but too little on facilitating data analysis and sharing. To validate the feasibility of the approach, a case study on a manufacturing small and medium-sized enterprise (SME) has been conducted. APS supports the data and information analyzing technique to facilitate the decision making such that the agent can enhance the negotiation and suppler evaluation efficiency by saving time and cost.