The benefits that can be expected by the company pertain to a highly efficient system for procurement, a faster and more efficient value chain for the company, continuous improvement based structure if operations, access to more suppliers on the internet, increased utilization of spot and special discounts offered by suppliers online.
The company will also be able to connect to the key suppliers through the online medium, which will save money and costs for the company in terms of transaction and communication costs. Moreover paperless buying would be introduced in the company along with an online/ electronic framework for requesting invoices, quotation, analyzing the quotations and presenting the need to ship or dispatch the data as it would be shared through the internet medium between the parties involved.
“Right now, large companies are leading the way in e-procurement. Because of the costs involved, smaller companies are lagging behind. One way for smaller organizations to take advantage of e-procurement’s benefits is to consider using application service providers (ASPs). By running their e-procurement and finance software on an ASP’s hardware, the smaller company can get the benefits of e-procurement without the cost of actually owning and maintaining the hardware. “(Roche, 2001)
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