The main disadvantage which is generated through the implementation of an e-procurement system is that the power is shifted on to the vendors who can take advantage of the competition in the market for their own benefits. The increased reliance of operating on paperless and online platform while establishing links with the suppliers in the market. In such a situation the suppliers have access to information about the company, which others might not have. The vendors in this situation can take advantage of the information provided to them and share them with the competitors of the company in the market for personal benefits.
Other disadvantages pertain to the technical problems which can arise due to the use of the e-procurement system. The EDI technology implementation can result in snags as well whereby the purchase orders and the invoices generated can have errors. These errors however are usually caused by humans at the time of configuring the systems. “Additionally, Information Week, explains that numerous firms “sign on for E-procurement without anticipating the long road ahead. They dive into projects only to learn that E-procurement applications are limited in the types and scope of purchasing activity they address. Managing electronic catalogs with thousands of products, providing employees with the right mix of products and adequate information about them, and making it easy to search for items can also be tricky, requiring additional tools and threatening the efficiencies promised by moving purchasing to the Web.”” (E-Procurement – PROCUREMENT METHODS, PROS AND CONS)
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