The impact of e-procurement systems on customer relationship management: a multiple case study

Abstract

In the past, traditional methods of procurement offered little transparency and lesser satisfaction of negotiations with suppliers. In the current financial crisis, e-procurement offers the benefits of greater transparency, better pricing, wider geographical reach and lesser time of transaction; hence, it propels the technology as an essential safeguard in both the service and manufacturing sectors of the economy. Companies are adapting to new technologies in an effort to compete through minimising costs and improving productivity in the modern marketplace, especially technological adaptation in the area of procurement. By restructuring initiatives and making use of new information technologies, businesses are learning to compete by using electronic avenues of procurement. As a result, increased importance in data sharing and process integration is the tactical result. One of the first steps in this process is selecting the best possible e-procurement solution. Many companies have examined the benefits of risks of implementing of such a solution and becoming successful using an e-procurement package. Several case studies of the Pittsburgh, PA and north-east Ohio areas illustrate the growing trend towards strategically leveraging the internet through e-procurement systems.