The e-procuring process can be useful for auctioning, tendering, vendor management and control management; and thus it would help companies to drive product cost down. Irrespective of the size and area of business, all profit, non-profit, and governmental organizations can get benefited from the B2B process. As Schneider (2008, pp. 228-229) states, organizations can incorporate their business activities with other organizations or governmental initiatives by promoting B2B e-commerce process. The system is not only feasible for big firms but also to small scale industries. The advanced form of groupware facilitates companies’ visual collaboration, group projects, and decision making which will subsequently enhance an organization’ s productivity, performance, and total quality management.
E-procurement will help small business groups to monitor both inventory purchase and cost reduction. Furthermore, it will improve the interaction between business groups irrespective of their distance. Some other advantages of B2B method are a) Selling and buying process between companies becomes simple; b) Enables easy anticipation of demands; c) Gives detailed information of capital flow; d) Promotes centralized control; e) Easy settlement of payments and disputes; f) Fast approval of the sale and invoicing However, in order to avoid flaws, small companies with weaker economic background must develop e-procurement in a cautious way when they come to system selection, implementation, and maintenance because the expense is generally unaffordable to such segments.
A simple example would best illustrate how two companies perform their business deal exclusively on the web. It resembles the conventional form of outlets that sell already manufactured products of various companies directly to customers. The only difference is that customers view products on the web and further choose what they require, place an order, pay bills using credit cards or other methods.
The purchased products will reach the customer by mail or courier.
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