Abstract:
The opportunity offered by digital technologies to make deep rationalization in purchase of supplies is becoming indispensable in competition between enterprises, considering positive effects in reducing the costs of the companies that have adopted the E-Procurement. As it has been confirmed by numerous case studies, automation of procedures for the purchase through e-procurement technology enables companies to achieve a reduction in costs (average 8-12%) of total purchases. So web-based models are playing a critical role within companies, especially in the generation of value of supply chain. This article focuses on the role of e-procurement within a supply chain showing, through simulations, the advantages and difficulties of implementing a systematic use of the Internet and defining the basic structure of an e-supply chain.
Previous Reviews on E-Procurement & E-Supply Chain:
While a number of definitions of e-procurement exist, Min and Galles (2003, 227) definition of electronic procurement as business-to-business purchasing practice that utilizes electronic commerce to identify potential sources of supply, to purchase goods and services, to transfer payment, and to interact with suppliers was adopted for this research because it is comprehensive. Many agree that the intensely competitive nature of today’s business environment makes the effective use of e-procurement an operational necessity for firms; it is an important issue that must be confronted by purchasing/supply management decision-makers now and into the future (Dooley and Purchase 2006; Davilia, Gupta & Palmer2003; Carter et al. 2000). Some of the noted benefits of e-procurement include increased collaboration between buyers and suppliers, reduced personnel requirements, improved coordination, reduced transaction costs, shorter procurement cycles, lower inventory levels, and greater transparency (Dooley and Purchase 2006; Davila et al. 2003; Min and
References: Researchers of the E-procurement & E-Supply Chain Significance: Armstong, J. and T. Overton, Journal of Marketing Research. Brynjolfsson, E. and J. Smith, Management Science. Cagliano, R., F. Caniato, and G. Spina. E-business strategy: How companies are shaping their supply chain through the internet. International Journal of Operations and Production Management. Carter, J. and R. Narasimhan. International Journal of Purchasing and Materials Management. Carter, P., J. Carter, R. Monczka, T. Slaight, and A. Swan. The Journal of Supply Chain Management.