E-commerce is an application used to build a connection between business application and the internet such that data sharing should be possible between the companies. B2B (Business to Business) help removing obstacles raised by marketâ€™s geographic disintegration. Using this application, buyers can be familiar with new sellers as well as better products, while suppliers came to know about new buyers. It also helps in avoiding unnecessary inventory which used to cause by lack of communication between buyer and seller.
This application enhances flow of information as well as transparency. Few Suggestions on why to adopt E-procurement As a suggestion, I would like to say that Fitter Snicker should go for internet procurement. E-procurement, commonly known as supplier exchange comprises of B2B purchase and sales of supplies done through the internet using information systems like ERP (Enterprise Resource Planning). ERP allows sharing of various vendor applications. It provides several advantages like, less time consuming, no geographical disintegration and no wastage of money.
Now, among all sales people at Fitter Snacker, some of them deal with the distributor rather than customers. Now using the ERP application, they have a portal of their own. On that portal, they can everyday view top 10 customer figures, production data as well as data on inventory of bars, current stock figures for Fitter Snacker on the stock exchange, called NASDAQ, also the recent market price for oats, honey and wheat germ. They can also check their email and the weather report on the same portal. Now if someday, any salesperson wants to make an important sales call for a regional grocery chain.
He can check the updated report of current sales order and confirm shipping of additional bars within next week, while gone on a client visit by using wireless PDAs. He can also utilize one more benefit of e-procurement that is Business Intelligence through which he can check few more reports to verify that nationwide which snack bars are at present selling better while to find sales patterns he can use data mining tools (Erridge Andrew, 2001). Reference: Erridge Andrew, Fee Ruth, McIlroy John, Best practice procurement: public and private sector perspectives, illustrated 2001, Gower Publishing, Ltd. , ISBN: 0566083663, 9780566083662
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