Buying products and services that are required to run an office, shop, farm or business is part of day-to-day business life. Much of what businesses require in the way of office supplies requires little thinking or shopping around. However, when the purchasing decision requires researching, such as buying a new office desk, or when there is a reason to check whether a long-term supplier is still offering the best deal, the Internet can be a great time-saver and often a cost-saver.
Using search engines, local business directory websites and the Yellow Pages online, enables quick and easy research into the various suppliers and options. Referring to a supplier's website should reveal their models or product lines, plus the quality, price or fee, delivery costs, availability, payment terms, guarantees and after-sales service they offer.
A growing number of suppliers have their catalogues online and provide the means of ordering and paying online. There are many advantages to this, including the convenience and cost-efficiency of being able to order whenever you wish, in or out of traditional office hours. It is also cheaper to pay online than writing a cheque.
What to do
- Develop policies in your e-business plan for reviewing at regular intervals via the Internet the pricing, quality, convenience etc of current suppliers.
- Develop policies in your e-business plan for giving preference to office suppliers that provide online ordering and payment facilities.
Business can purchase products and services from other businesses by using the Internet. Two companies, one the supplier and the other the purchaser, can transmit inquiries, orders, invoices, payments etc. directly via the Internet. In this way the purchaser can:
- manage supplier relationships and accounts more easily as they are more automated
- save time writing out and tracking orders
- manage cash-flow more easily.
The supplier benefits by being able to respond more rapidly to orders and can manage cash-flow more easily.
Procurement using the Internet is referred to as e-procurement.
What to do
Research the advantages and challenges of adopting e-procurement by enquiring from your industry association and by researching on the Internet. The following documents provide a good starting point for your research.
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