As with any new technology, once you’ve navigated the initial bumps in the road, the end result is well worth the journey. Read more about selecting a vendor that will integrate best with your company’s procurement system to assure the smoothest trip possible.

The wrinkled business of procurement is gradually being ironed out with the help of e-commerce technology. Business-to-business procurement has always been a tedious process of paperwork and phone calls, but buying goods and services online allows companies to work more quickly and efficiently, reducing both costs and superfluous spending.

Sounds too good to be true? Well, before you throw your phone out the window, know that like any big transition, it has its wrinkles. First there’s the culture shock – providing education and training about the technology. And once you adjust your own staff, you then have to surf through the mud searching for suppliers who’ll blend with your system. This creates problems because of the lack of e-commerce standards, i.e. finding a vendor who will integrate smoothly with both your internal and external procurement systems. At first, a system such as Stapleslink.com or ERP may not assimilate smoothly with your new Internet set-up. But once you have adjusted, it’s well worth the headache.

Because of the many benefits of online purchasing, such as the ability to access fully transactional catalogs, issue RFQs (requests for quotes) and obtain responses in real time companies can negotiate more and spend less. In addition, the immediate availability of finding new suppliers spurs competition and helps to regulate prices. This type of integration allows companies to have a prerequisite and then search for the best deal. E-commerce technology also allows their buyers to use customized, private exchanges with pre-selected suppliers and pre-negotiated prices.

Another advantage is that buyers can search for a supplier to find the standard items they need. With e-commerce, employees can order items directly by going to pre-negotiated web-sites for their specific department; this can cut wasted time significantly. And since the suppliers are linked, this method of purchasing goods and services also reduces maverick spending because companies can regulate funds more closely.

Although many companies have only just started to realize the full potential of net-based purchasing, the future seems brighter as more and more companies register online, taking the big leap into the computer age.

Source: In the Trenches: How Online Procurement Is Really Working Out
Rob Spiegle
eCommerce Business, Aug. 14, 2000
http://www.ecommercebusinessdaily.com/archive/ECBFA83000-8274.asp