The value of e-procurement models in B2B exchanges - An Australian experience

This paper presents a theoretical e-procurement model that was developed for a large multinational Australian corporate as a business plan as the company moves from traditional paper and EDI based processes to e-procurement. The model provides a framework for optimising e-procurement processes while enhancing interrelationships between buyers and sellers. The multi-disciplinary framework is based on value propositions specific to a single corporate, or to a buyer consortium using e-markets to facilitate B2B exchanges. The e-markets that facilitated the B2B exchanges or that were set up to facilitate the B2B exchanges comprised many founding shareholder enterprises, some of whom are both buyers and sellers in the B2B exchange arena. The impact of the model on e-procurement, the role of e-markets and resulting issues after implementation are discussed in this paper. The values of e-procurement models in B2B exchanges have also been highlighted. The model presented in this paper provides the framework for optimising these systems and processes and their relationships using e-enablement of the procurement process.