|
With the potential to make significant savings in supplier costs for Irish companies, e-procurement is set to become a significant part of b2b e-commerce during 2000, according to IBEC. The organisation is calling on the Irish Government to set an example to the private sector and place its own supply tenders on-line.
E-procurement allows the trading of "indirect" goods such as office supplies, furniture and software between companies and suppliers on-line. Analysts have predicted that the technology will save IEP16.8b annually in Ireland, and that the overall global market for b2b e-procurement will be USD1.3 trillion globally by 2003.
"The examples I have seen right now are 'non-strategic' purchasing, it is about moving purchasing power to the desktop," said Michael Moore of IBEC's E-Commerce Business Awareness Campaign. "A lot of e-procurement will be for consumables. We are not talking about essential supply chain mangement."
IBEC is calling on the Irish Government, as the biggest spender in the country, to go on-line as others will soon follow. "If [Irish firms] realise they could deal with the government on-line they would start dealing with other companies and customers that way," said Moore. "Government should lead the way as there are still lots of people worried about e-commerce. As a trusted 'business' the government would be the right leader."
No less than four e-procurement packages have been launched on the Irish market in the past month, all by firms looking to get a first mover advantage in this promising sector.
The solutions vary from Ocean's "ePs" (eProcurement Solution), which allows purchasers operate an intranet application linked suppliers, to KPMG Consulting's e-purchasing solution, launched in conjunction with Microsoft and Compaq.
KPMG has said it believes the e-purchasing market in Ireland could save Irish businesses over IEP2b. SoftCo's Buzztrading.com, due for launch here soon, lets Irish companies buy and sell goods as on-line.
"The focus in the marketplace has shifted from enterprise-to-consumer e-commerce to the creation of 'virtual channels' between trading partners," said Tina Kinirons, business solutions group manager at Microsoft Ireland. "Until now this shift has been hindered by the diversity of solutions and standards employed by businesses, making it difficult for effective interaction over the Internet."
Critics say there are downsides to e-procurement, including the fact that purchasers can no longer negiotiate directly with their suppliers. The systems must also be carefully integrated with company policy, so that employees do not spend more than they are permitted. But IBEC still believes e-procurement will soon take off.
"By the end of the year we will see more companies using it," said Moore. "When they realise e-procurement is all about saving cash, the bottom line, they will move quickly."
-end-
|
