Fuster describes an even more dramatic example. For example, the company exercises a level of due diligence that includes obtaining a Dunn and Bradstreet rating on its vendors. This information is available on the site to assist customers in screening sellers. In addition, vendors are not paid for products until the customer is satisfied. The firm also facilitates dialogue between buyers and sellers and, through an arrangement with Federal Express, handles the shipping of all goods.
Agencies reap additional benefits when data about their purchasing habits are collected.
Government buyers can review the database to determine what items are being purchased, how much is being saved, and how many small businesses they have been buying from to verify that they are meeting small business participation goals. Verity Incorporated, Sunnyvale, California, is one company whose technology powers the knowledge management capabilities behind many of the e-procurement sites. Dr. Ashok Chandra, Verity's senior vice president of development and new business activities, believes that organizations are at the threshold of a new world that values the ability to extract knowledge from data. The direction knowledge management is taking is as a social network. The value is not just in the bits and bytes.