The Impact of Electronic Commerce on Procurement

Abstract

Internet technology has been increasingly used to enhance the global competitiveness of various business applications through the widespread electronic commerce (EC) functions. Many Internet-based systems have been designed and developed for supply chain management (SCM) in various areas such as computer, garment, and publishing industries, which mainly center on communication infrastructure, coordination between production and distribution, and procurement functions with security mechanisms. However, EC is not a panacea. On many occasions, participants (including buyers, sellers, and enablers) face various risks and overhead during the deployment of a new technology. In this article, we present the impact of EC on procurement processes in supply chains, highlighting the issues of buyers, sellers, and the transaction processes involved. The procurement processes are classified into preprocurement (sourcing), procurement (quotation, negotiation, order placement, and transaction), and postprocurement (delivery). Moreover, a four-phase migration model of procurement onto the Internet is introduced to illustrate the technical, security, and financial requirements in the deployment process of EC. The migration model not only gives a development guideline of procurement functions, but also provides an evaluation framework of e-procurement. An industrial example is used to illustrate the corresponding evolution as a result of EC deployment. The paper concludes with a summary of EC impact and future research directions.

The role of quality in e‐procurement performance: An empirical analysis

“…In another study, Shang and Seddon (2000) report that the integrated and automated business processes using enterprise resource planning systems give rise to quality improvement such as error rate reduction, duplicates reduction, accuracy rate improvement. The uncertainty of delivery time is reduced when information flow or communication between suppliers and logistic third parties is facilitated (Yen and Ng, 2003). This supports our view that the resources that we identified in information flow process quality is positively associated with the logistics fulfillment of suppliers.…”

The Influence of Price Fairness, Promotion, and Perceived Ease of Use on the Repurchase Intention

“…Nowadays, the internet and electronic commerce have transformed the business environment and created opportunities for companies and consumers around the world (Zhu et al, 2013). In business field, electronic commerce refers to using the internet as a distribution channel to buy and sell goods and also services to the consumers (Lester & Digman, 2003). Digitization blurs the line the technology and management and also facilitates the new business models that are integrated into several concepts, methods, and tools of the digital environment (Sestino et al, 2020).…”

Virtual Prototyping of Thermal Management Systems

“…To overcome this problem in the face of rapid and continuous technology advances, greater cooperation between manufacturers of electronic devices and suppliers of standard parts is needed [1]. There are many ways to facilitate this cooperation and these include virtual prototyping [2] and electronic commerce developments for the online sourcing and procurement of standard parts [3].…”