Web-enabled applications for
business-to-business (B2B) procurement are not only expected to reduce the cost
of purchasing process but also to alter the activities of purchasing, transform
the purchasing process from an operational into a strategic activity and
provide opportunities for improving market coordination by reducing asset
specificity and by making additional partners available. The results driven
through implementing Web-based e-procurement system not only enhance the
performance of the buyer organization but also enhance the performance of the
supplier organization and improve partner relationship management.
The benefits resulting from
implementing Web-based e-procurement system for direct procurement (i.e.
purchasing production-related items) can be either belonged to organizational
level or inter-organizational level. The organizational-level benefits are
generated by Web-based e-procurement through automating procurement process and
reengineering the internal processes of an organization. The
inter-organizational-level benefits are generated by Web-based e-procurement
through reengineering the procurement process among trading partners and re-configuring the linkages of trading partners.
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