E - Procurement

Topic 4 – E-Procurement

Hypothesis: Organizations can reduce cost through e-procurement system.

Impacts on Business Process
Gebauer, et all (1998) describes procurement as one of the most important functions for both governmental and private sector business processes. Procurement is more than just purchasing goods and services. It includes all activities involved in obtaining, transporting and moving material towards the production process. Electronic procurement makes use of electronic commerce technologies, such as Electronic Data Interchange (EDI), e-mail, and electronic catalogues. Zenz and Thompson (1994) stated that most organizations spend at least one third of their overall budget on purchasing goods and services, procurement holds significant business value.

Zenz and Thompson (1994) divided purchasing into 3 basic steps, Information, Negotiation, and Settlement.Emerging internet technologies are raising hopes of changing the picture of costly, time-consuming, and ...