Retail “e-procurement” 2002: Minimizing costs and improving productivity

What, what has Corona Virus done to your expense structure? If your’s is still in-line, congratulations on a job well-done and maybe even a little luck. For the rest of us, re-balancing cost structures with current and future revenue expectations is a monumuntal task.

Nearly twenty years ago, e-procurement seemed like it had a lot of promise to help the small and medium businesses capitalize on the same scale leverage as large public companies. What happened? Does it still apply?

The inflation and subsequent deflation of the dot-com era and a tougher economic
climate are forcing businesses to focus on “back to basics” execution of their business
strategies. While many companies are wary, industry leaders are looking to build
e-business capabilities that drive real and lasting value.

While e-commerce euphoria was largely driven by the fear of lost market share,
the e-business strategies of today are seeking sustainable competitive advantage.
Electronic procurement (“e-procurement”) can be a primary source of competitive
advantage for retailers in:

• Reducing and/or avoiding costs and improving productivity by eliminating
  manual, paper-based processes and empowering employee procurement within
  a controlled set of parameters.
• Enforcing on-contract buying by providing an easy-to-use tool that automatically
  puts procurement standards and business rules into effect.
• Developing reporting capabilities that provide a consolidated record of spending,
  supplier performance and transaction costs, which can then be used for strategic
  sourcing, contract negotiation and supplier relationship management.
• Reducing purchasing cycle times and effort by streamlining procurement processes.