Knowing what you want to achieve is vital in any aspect of e-business, since the real benefits do not come just from automating existing operations but from rethinking and transforming them. The internet enables companies to communicate and interact with their suppliers, customers and employees to an extent never before possible. Thus, e-procurement, in its fullest sense, does not mean just putting purchasing decisions online. It also means linking suppliers into the purchasing network and broadening the range of employees who can carry out transactions. It gives greater control and flexibility, along with cost savings that are readily identifiable.
Sellers can also derive advantage.
They can be hooked into companies' stock systems to see when goods may be due for renewal instead of just showing their products in a catalogue and waiting to be approached by buyers. As the advantages of e-procurement become more widely known, companies are increasingly signing up to the idea. Most use e-procurement for office supplies and MRO items. Only 35 per cent employ it for direct or production-related goods. The bank also found that 42 per cent of companies plan to join e-marketplaces.