Pavel Mikhasenok

ITS 380

CH 12 Projects: Question 2

 

Amazon (e-distributor) vs Ariba (e-procurement)

 

E-distributers like Amazon Business, provide online catalogue of indirect goods and are independently owned. The downside of e-distributer is that they offer industrial customers a single source from which to order indirect goods and must be purchased on spot.

E-procurement Net marketplace like Ariba is an independently owned company that connect hundreds of suppliers with customers and offering millions of indirect products of for maintenance and repairs. With e-procurement companies, buyers and sellers are able control value chain management services. The benefit of using e-procurement company is the ease of purchasing. E-procurement companies automate purchasing orders, requisitions, sourcing, invoices and payments.

If I was a business manager of medium sized firm, I would pick an e-procurement company like Ariba, because the automation process will make my business more effective and efficient while cutting down on purchasing costs.