The paper "Impact of E-procurement on Procurement Practices and Performance by Quesada and Gonza´ lez" is a delightful example of an article on business. The supply chain is a systemic arrangement of people, activities, and resources, which transform raw material and components into finished products. E-procurement is an electronic purchase between business-to-business, business to consumer and even business to government. Additionally, e-procurement is the most significant value of a company's e-commerce strategy in the supply chain. EPT is important because it is the actual act of delivering the products to the supplier. Although many buyers are using EPTs on a personal level, larger companies are still afraid of using EPTs.
The article shows “ the percentage of business procurement conducted electronically is relatively low – ranging from 10 percent to 20 percent” (Qualyle 2005; Kulp et al. 2006, as cited in Quesada et al. 517). Larger companies used EPTs without fully understanding the inter-organizational collaboration and the complexities involved in the program. The failure of understanding the e-procurement platform renders it an unworthy process to undertake for many organizations. Organizations also face the problem of streamlining the existing systems of the enterprise with electronic procurement platforms.
These problems though encountered in personal e-procurement; do not carry as much weight as they do in organizations. People seek to reduce the time spent in making procurements and have the sole responsibility to make decisions. Individuals, pre-existing enterprise systems are also not as complicated as those of organizations and are, therefore, easy to incorporate EPTs. One benefit of the e-procurement is that it provides better coordination with suppliers. Better coordination achievement is by the effective communication channel.
EPTs also create quicker transaction times by reducing the time required to make a procurement. According to Quesada et al. , e-procurement can be executed at any time and without physical movements (517). It is, therefore, flexible with vast situations. EPT cuts the cost required to perform a particular transaction of a partnership for an organization. The e-procurement results in better supplier integration and helps the company run efficiently. EPTs also help in information dissemination as it is also concerned with information exchange (Quesada et al. 518). EPT operation, however, faces several drawbacks.
EPT eliminates face-to-face communication, which may lead to misunderstanding while increasing risk chances in the transactions. Quesada et al. argue that EPTs are difficult to merge with traditional enterprise systems (517). The lack of a defined method of accessing EPT benefits has also been a drawback in the use of the platform. EPT involves the use of technologies on electronic networks and practices to achieve and improve information exchange, electronic communication, and transaction. Achieving the processes require the use of private or public networks. On the other hand, internet procurement involves procuring sales or services through the internet.
EPTs only use the Internet as a compliment while for internet procurement it is a necessity. EPTs require a significant amount of investment to set up while internet procurement does not involve a high cost to set up. EPTs require a method for information exchange necessitating the setting up of information infrastructure. Internet procurement does not necessarily require the formation of relationships and links. The information infrastructure is hence not necessary for Internet procurement. However, internet procurement can be considered as a small-scale form of EPT (Quesada et al.
518). Works CitedQuesada, Gioconda, Gonza´ lez, Marvin. , Mueller, James and Mueller, Rene. “ Impact of e-procurement on procurement practices and performance. " Benchmarking: An International Journal 17.4 (2010): 516-538.