The two parties can exchange information, including specific data and necessary reports, in a quick and efficient manner. With the aid of this procurement method, information is exchanged more efficiently than with the use of traditional communication channels, and the overall organizational processes are better supported (Best Price Computers, 2010).
f) Electronic data interchange
The electronic interchange of data was the first process of electronic communication, dating back at least two decades, and being itself older than electronic commerce. Electronic data interchange refers to the communications underwent by two or more economic agents in the scope of completing their business operations.
The electronic interchange of data is generally occurring between two economic agents, in which case it is called B2B communications (business to business). The interchange of data is commonly characterized by the exchange of information within the virtual community of data which would traditionally be found in five categories of business documents: "invoices, purchase orders, requests for quotations, bills of lading and receiving reports" (Schneider, 2010).
g) Online marketplaces
Last, the online marketplaces represent virtual communities which bring together buyers and sellers. Within these virtual communities, parties involved in business and trade operations can exchange information, and collect data on the services needed / provided as well as other important features.
An important component of the online marketplaces is represented by the presence and usage of software. In other words, the online marketplaces use software applications to ensure that the participating parties are able to adequately exchange and use information. This situation often raises additional complexities as the marketplace would have to purchase the software applications, incurring as such additional costs. These costs associated with the electronic procurement method would be reflected in the service delivery to the users, meaning for instance that the participants in the online marketplace could be required to pay a membership fee (e-Commerce, 2011).
The final two methods of electronic procurement are simplistic presentations of the wider process in the meaning that the reality presents the individual with various combinations between electronic data interchange and online marketplaces....
Countless methods of electronic procurement are created through the combination of the two, each characterized by its own features as needed by the company resources, needs and other such criteria. Some other decisive factors used in the selection of a procurement method could include the needs of the company, the features of its market supply and chain, the sources of its supply, the costs and prices, the risks involved or the schedules (Plummer).
Aside from the combination of electronic data interchange and online marketplaces, the real life context of economic agents also reveals a combination of electronic procurement methods with traditional procurement methods. For instance, in the process of negotiation with purveyors and information, the company could use both the internet, as well as the fax machine (Havaldar, 2010).
All in all, electronic procurement is a more and more common presence within the business community and it has metamorphosed from a sporadic process into a full and complex business strategy. Electronic procurement methods are supporting economic agents in developing and focusing on the core operations by increasing the efficiency of procurement operations and decisions (inventory management, logistics, purveyor communications and so on). But it has to be noted that each economic agent has to make use of the electronic procurement methods which generate the most benefits in the particular context of the respective institution.
Chaffey, D., E-business and e-commerce management: strategy, implementation and practice, 3rd edition, Pearson Education, 2006
Schneider, G.P., Electronic commerce, Cengage Learning, 2010
Havaldar, Business marketing: text and cases, 3rd edition, Tata McGraw-Hill Education, 2010
Plummer, R., Contracting and procurement optimization 501, Curtin University
Rittel, H.W.J., Webber, M.M., Dilemmas in a general theory of planning, Policy Sciences, 1973
Thai, K.V., International handbook of public procurement, CRC Press, 2009
Thai, K.V., Towards new horizons in public procurement, PR Academics Press, 2011
Wallace, T.F., Kremzar, M.H., ERP: making it happen: the implementers' guide to success with enterprise resource planning, 3rd edition, John Wiley and Sons, 2001
e-procurement, e-Commerce, http://ecommerce.hostip.info/pages/422/E-Procurement.html, 2011, last accessed on October 21, 2011
Electronic procurement, EPIQ, 2010, http://www.epiqtech.com/Electronic-Procurement.htm…
E-Commerce Communications Electronic commerce or e-commerce is the term used to describe all forms of information exchange and business transactions based on information and communication technologies. There are different types of formal definitions of e-commerce, but the wide scope involved has resulted in many definitions focusing on only certain aspects. A fairly comprehensive definition covers e-commerce from four different perspectives (Kalakota and Whinston, 1997, p.38) - communications, business process, service and
This allows for greater levels of planning and cooperation, and fills in the information gap that currently exists between the factory floor and the rest of the supply chain. Lexmark provides an example of waste. Recently, the company found itself with more than $1 million in scrap from one lot. Engineers had insufficient information to isolate and fix the problem, so were instead relegated to crisis control. With more accurate
To avoid repeating negative historical experiences, regulatory regimes need to block the control and domination by networks/platforms. In the report, "Infrastructure and Development: A Critical Appraisal of the Macro Level Literature," Stephane Straub (2007) reported that at times, in some developing companies, "the hope of getting a fixed-line installed is a distant and costly dream" (p. 4). Meantime, the primary option for the individuals waiting for fixed-line telecommunications services
Kodak and Fujifilm The history and core business of Kodak and Fujifilm Kodak and Fujifilm have been the most popular companies in the history of U.S. And world photography industry. Little is known about the history and the existing rivalry between the two companies over the years. Both companies have intriguing historical backgrounds; how they began and how they continue to grow and challenge one another in the industry. Fujifilm was set
SECURITY and PRIVACY - the following security and privacy requirements apply: The Office does not accept responsibility for the privacy, confidentiality or security of data or information not generated by this office or transmitted from external sources into the system. The Office does not accept responsibility for loss, corruption, misdirection or delays in transmission of personal data through the system. Users are responsible for the integrity of all data and
However, during the little more than 10 years of this research line, contradictory results have been found (Brynjolfsson, Hitt, & Yang, 2002). From the 1970s to 1980s, those companies that invested more in IT suffered a relative setback in the work factor productivity indexes. This paper will discuss the relationship between IT and competitive advantage in following content. We believe that IT is necessary to improve competitive position of