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E-Procurement and E-commerce in Today’s Marketplace
What is e-procurement?
E-procurement is the buying and selling of services or supplies from business-to-business (B2B) over the internet. An electronic procurement system that allows registered users to search and purchase your inventory over the internet. The internet serves many B2B sites as an electronic marketplace where transactions are initiated and completed with just a few clicks of the mouse.
What is e-commerce? E-commerce has the same fundamentals of e-procurement except it is on a smaller more personal scale. Individuals who are registered on an e-commerce site may search for and purchase, or sometimes bid for, anything they need, normally over the world wide web. Individuals and smaller businesses are also aggressively pursued by e-commerce purchase portals to sell their goods, of course for a commissioned fee.
E-procurement and e-commerce are changing they way the world does business. It has opened up and opportunity for global markets to compete for business. Any individual or business with a computer and internet connectivity can participate in e-procurement and e-commerce. Many sectors of the economy are now approaching business in this way. Businesses will benefit from e-procurement by eliminating overpayments and reducing the manual workload. Individuals will benefit by having a wider variety of items to choose from and the added convenience of shopping from home.
Online purchasing can generate significant savings for organizations and corporations by making larger group purchases, greatly reducing the cost per item. By doing so these entities also are increasing informational accuracies and streamlining the buying process. Automation of ordering frees a lot of time for the big purchasers, giving them time to concentrate on negotiating better deals.
Suppliers of products or services who use e-procurement will benefit by reducing administrative and transaction costs. They will also find that they have improved their manufacturing cycles. In doing this they will ultimately increase their bottom line.
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Software companies are making some great programs that have templates for quick and easy access to other operational systems. Menus are provided for quick and easy access to accounts, human resources, and payroll.
Some software is even changing the way businesses do inventory. They have automated the re-ordering of supplies with no human contact needed. It is simply keeping track as transactions are made.
Information from registered users of e-procurement and e-commerce sites can be gathered and used in a variety of ways. Users may not realize that when they register to do business, fill out a questionnaire, or place an order, demographic information is being gathered and shared among other online entities. This is commonly called profiling. Registered users now have the opportunity to decide how their information is used or shared.
A large number of business web sites trying to get new e-commerce clients offer e-mail newsletters for subscribers. The newest trend is the e-mail opt-in list where users voluntarily sign up to receive emails, normally containing sponsored ads, about their products and other subjects that might interest them. This is just another way to put their products in your in-box.
E-commerce and e-procurement sites are able to do business twenty four hours a day, seven days a week, making their products and services more available than businesses that are strictly running out of a store front with no online presence.
It is imperative that in today’s market place a business must start taking steps to insure they keep up with technology so they don’t get left behind.
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