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e-Procurement: From Strategy to Implementation by Dale Neef

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The Unique Nature of B2B E-Procurement

So, what is it about the nature of B2B e-commerce that gives rise to this magnitude of change and savings? The answer seems to be that, unlike online e-commerce sales that may or may not expand revenues, B2B e-commerce will fundamentally restructure the way in which an organization purchases goods, resulting in significant process efficiencies and permanently lower costs. Organizations are finding that the more they can integrate e-procurement processes and systems directly into their supply chain, the greater the effect in terms of cost savings and process improvement. Those improvements come about in several broad areas.

First, online procurement significantly reduces the day-to-day cost of purchasing. ...

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