Procurement over the Internet

Business can purchase products and services from other businesses by using the Internet. Two companies, one the supplier and the other the purchaser, can transmit inquiries, orders, invoices, payments etc. directly via the Internet. In this way the purchaser can:

• manage supplier relationships and accounts more easily as they are more automated
• save time writing out and tracking orders
• manage cash-flow more easily. 

The supplier benefits by being able to respond more rapidly to orders and can manage cash-flow more easily.  

Procurement using the Internet is referred to as e-procurement.  

What to do

Research the advantages and challenges of adopting e-procurement by enquiring from your industry association and by researching on the Internet. The following documents provide a good starting point for your research.  

 From Paper to Procurement - effective catalogue creation and management for buyers and suppliers (574 kb)
This guide has just been produced by the Australian Government (Department of Communications, Information Technology and the Arts) in conjunction with relevant associations, agencies and companies that specialise in the area of e-procurement and e-catalogues. It was funded through the Australian Government's Information Technology Online (ITOL) grants program. The guide is designed to help Australian suppliers publish and maintain electronic catalogue data in a format suitable for selling and buying online (ie e-procurement).

Australian Institute of Purchasing & Materials Management Ltd

Search for e-procurement on this site. There is an article "e-Procurement or Procurement Strategy - which comes first?" published in May 2002. www.aipmm.com.au/knowledge_lib/default.asp

From the AusWeb02 conference

Reverse Auction e-Procurement: A Suppliers Viewpoint

"E-procurement is one of the shining lights in the evolving e-business story and this paper will look at a case study of an online reverse auction where a major Australian manufacturer sources logistics services for most of its commodities." http://ausweb.scu.edu.au/aw02/papers/refereed/stein/paper.html

 e-businessguide Case Study - ITW Buildex (447 kb)

 e-businessguide Case Study - Kell and Rigby (458 kb)