The benefits of buy-side purchasing include automation of administrative tasks, which frees up buyers time. Although there s no cost to the buyer aside from Internet access, there s also no integration with the buyer s back office system, which makes purchases more difficult to track. Transactive content intermediaries are groups of electronic catalogs from suppliers in a vertical market. A third party administers the online trading community. Buyers have the advantages of a buy-side system but without the cost of hardware, software, and catalog maintenance.
Suppliers can transmit orders directly into their order fulfillment systems.
On the downside, few electronic marketplaces currently exist. Regardless of the e-procurement system you choose, it can have a positive impact on your bottom line. E-procurement simplifies the purchasing process and creates more efficient buying practices. By consolidating purchasing, e-procurement can also help you maximize bulk rates and corporate discounts. And, e-procurement can help you measure supplier performances and increase purchasing from contracted suppliers.