When organizations in any of these markets make buying decision these are influence by the following factors:
* Who is buying?
** Different members are usually involved in the buying process. These include actual users, influencers, buyers and decision makers.
* What is the type and size of the purchase?
** Purchases can be categorized by:
*** Volume
*** Value
*** Low frequency high value transactions such as the selling of large aircraft's tend to be purchased without any internet impact.
* How much information is required to make a purchasing decision?
The advantages of online procurement are:
* Higher transparency
* Reduced risk of maverick spent
* Price reduction though online negotiations
* Process optimization
The disadvantages are:
* Organizational risk
** Depending on the level of integration (see [[M8-S3 - Reading - Strategies for E-Business - Chapter 9 - Choosing the appropriate strategy for the internal organization]]) there may be internal bottlenecks to online procurement
* Technology risk
* Supplier resistance
** As online procurement may force price cuts and disrupt stocking and labor agreements.

Part of: [[M8-S3 - Reading - Strategies for E-Business - Chapter 10 - Choosing the appropriate strategy for interaction with suppliers]]
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businessmodelling_public
created
Mon, 27 Dec 2010 18:04:04 GMT
creator
dirkjan
modified
Mon, 27 Dec 2010 18:04:04 GMT
modifier
dirkjan
tags
Business
M8
Modeling
creator
dirkjan