Chapter 9. The Future of E-Procurement

Objective

Understanding the eight key trends in the evolution of e-procurement can help when devising a company strategy.

  • Development of XML as a standard will greatly improve intersystems connectivity.

  • Industry growth will continue with both corporate and network-based e-procurement solutions.

  • There will remain two different purchasing paths, although the line between them will continue to blur.

  • Consolidation of vertical e-marketplaces.

  • Pressure from customers to provide all-inclusive solutions.

  • Value of strategic sourcing will come in question for spot markets and commodity buying over the Internet.

  • Roles of procurement specialists will change greatly.

  • Government spending e-procurement will increase and influence the uptake of online purchasing solutions among private firms.


There can be no doubt, given the potential cost savings and market expansion that e-procurement can bring to both buyers and sellers, that most companies are ready to begin developing an e-procurement strategy.

But given the volatility and complexity of this fast-evolving marketplace, how can a company know which approach to take?


But given the volatility and complexity of this fast-evolving marketplace, how can a company know which approach to take? Will enterprise applications become completely obsolete, giving way to third-party providers? Will the benefits of low negotiated price and near-instantaneous buying mean that most indirect, and even direct, materials will soon be purchased through e-markets?

There are several things upon which most market analysts would agree.

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