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 re-engineering 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 reconfiguring the linkages of trading
partners.
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