The evolution of electronic commerce in recent years has greatly changed the landscape of the supply change. In the current scenario, it is becoming increasingly challenging to perform procurement management in logistics without the support of technological tools.

1. Impact of Ecommerce on procurement
C.K.C

2. E-procurement
Introduction
The evolution of electronic commerce in recent years has greatly changed the landscape
of the supply change. In the current scenario, it is becoming increasingly challenging to perform
procurement management in logistics without the support of technological tools. The
procurement procedures are categorized into sourcing, purchasing (quotation, negotiation, order
placement, and transaction), and delivery (Romm & Sudweeks, 1998).
According to Chaffey, Hemphill, and Edmundson-Bird (2019), to better understand the
positive and negative impacts of e-commerce on procurement, it is important to break down the
structure of e-commerce into two main blocks. The first block indicates the activities related to
transactions between companies that buy and sell products with each other (B2B). This group is
characterized by a relatively low number of high financial value transactions. The second block,
of transactions between companies and final consumers (B2C), is characterized by a high relative
volume of transactions with low financial value involved in each one of them is a situation that
affects everything from small and new businesses to large corporations (Chaffey et al. 2019).
In many businesses, digital procurement processes have been increasingly used to enhance
global competitiveness and in line with the widespread electronic commerce (EC) functions
(Erridge & McIlroy, 2001). Many Internet-based systems have been designed and developed for
supply chain management (SCM) in various areas such as computer, garment, and publishing
industries, which mainly center on communication infrastructure, coordination between
production and distribution, and logistics functions with security mechanisms(Chaffey et al.
2019).
Understanding e-commerce in procurement and relating to other activities within the
business chain, as well as the various operating models that originate from it, is a fundamental

3. E-procurement
requirement for those who want to position themselves clearly and strategically in digital
business. It is important to understand each of the macro-processes involved, as well as their
evolutions and new opportunities that arise in an environment that is still under consolidation.
From this understanding, one can have a clearer position regarding the business model(s) one
intends to adopt or focus on. Below is the structure of the traditional supply chain and e-commerce
SCM in B2B;
The Impacts of ecommerce on procurement
The use of Ecommerce in procurement have significant benefits for both the acquiring
companies and the suppliers involved. However, such an e-procurement system must first be
implemented, and this does not apply only to technical implementation: workflows within the
enterprise must be adapted to the new system, tasks may need to be redistributed and all
employees must be trained in e-purchasing. Also, there are some negative issues that that has be
linked to the use of ecommerce in procurement process;

4. E-procurement
A. Positive impacts
1. Automation and convenience in purchasing and record keeping
In traditional non-digital procurement, employees spend a great deal of time performing
routine procurement and related services over and over again. The demand for supplier catalogs
takes time, a process that can be automated or even become completely unnecessary through
ecommerce. In the pre-sourcing phase e-catalogue the best way of restructuring and classifying
product info that all the information of the product in a responsive way. In this way, purchases of
products and services can be made by the consumer from the comfort of their home.
2. Procurement timeliness and work force
Even without automation effects, the use of ecommerce saves the working hours of the
employees involved the process and reduces procurement time. This can be explained by the fact
that the transmission rate of the digital data is higher than that of the printed information. With
the use of things such as Dynamic Purchasing System (DPS), all parties involved in the process
can also receive all the information in real time (Yen & Ng, 2003). The order data is immediately
integrated in the supplier's system. This saves time in order processing. Also, there’s possibility
of buying products and services at any time, since, as a rule, the online stores are open 24 hours
a day as compared to traditional stores whereby most operate as per particular time schedule.
3. Distribution of Rights in procurement process
An online procurement system also helps users optimize the allocation and enforcement
of sharing rights. This technology can be used to ensure that no one executes orders without the
proper rights until they have been approved by a responsible employee. The corresponding rights
can be allocated quickly via a computer solution and can also be removed quickly.

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4. Costs efficiency in purchasing procedures and record keeping
The impact of online shopping is that prices are often more competitive than those charged
by physical stores. However, the fact that the customer cannot immediately come out with the
product is still a barrier to increased sales of an online store (Mora-Monge, 2010). For this reason,
it is essential to offer the express freight modality, giving the delivery speed, because consumers
are willing to pay for this convenience. For this reason, express and super express delivery
services have changed the way e-commerce interacts with customers and carriers. Non-digital
procurement processes are often expensive: printing and paper are expensive on their
own. Installing ecommerce approaches in procurement systems is also expensive, but in the long
run it is cheaper to integrate digital solutions.
5. sufficient information for supplier selection and order preparation
With e-commerce, a comparative search is extremely easy, as offers from other stores and
even price comparison sites/apps are just a click away, thanks to e-commerce, and the use of the
Internet and digital media. In addition, order configuration via an online catalog is also more
flexible than traditional catalogs. Osmonbekov, Bello & Gilliland (2002) claims that the
increasing use of e-commerce procurement is mainly related to the increasing quality of
information. Since all information (such as product data) is transmitted electronically, online
procurement reduces the number of data entry errors: employees cannot write off incorrect
information. Also, digital publishing provides suppliers with much more information about
goods, which can, in turn, be filtered as needed. This means that each buyer can accurately display
the important data for him. Besides, information on products or services can be enhanced by high-
quality multimedia content (images, sound, and video).

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B. Negative impacts
1. Certain attack vulnerability of criminals
While as much as companies are investing heavily in more sophisticated and secure
protection systems to safeguard user’s information. The use of e-commerce procurement
procedures puts buyers to risks in the process of providing sensitive information such as credit or
debit card password, home address, social security number, ID and other information
(Subramaniam & Shaw, 2002). Because it is a free environment where anyone can impersonate
another, consumers hesitate at the time of purchase fear that this information may leak to others
unknown.
2. Increased possibility of errors and misconceptions in the purchase.
With the high propensity of incorrect purchases by consumers due to the lack of a universal
standard in the size of clothing, shoes, and other clothing in general, as well as animal items and
accessories or other modalities of use (Westland and Clark, 1999). Due to the fact that the
consumer may have difficulty assessing the product due inability to experience, feel or touch the
goods, cause a feeling of insecurity and fears at the procurement process.
3. Increased possibility of product delay and damage
Since, like most virtual purchases, the product tends to be transported from supplier to consumer
through third-party carriers and/or mailing services and is at risk of being damaged in such
transportation as well as delaying accordingly. Also, some of the online stores are just
intermediate suppliers who may not disclose the availability of the products and may face
challenges in the case where the product is unavailable after receiving the order leading delays.

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Conclusion
E-commerce favors new habits of growing business competitiveness by interfering with
the value chain added to the procurement process. Being global, e-commerce is rapidly
expanding worldwide; however, this speed and scope of e-commerce face obstacles of various
kinds. There are technical, organizational, cultural, and structural hurdles to that tone down the
development of e-commerce. It is therefore essential that the transmission be safe and reliable.
In electronic procurement, the systems transmit contracts and other legal documents.
Appropriate measures are needed to ensure that both parties can be confident that the
commitments are being met. In some cases, for example, a password may be sufficient to
provide a binding confirmation; in other cases, a legally binding digital signature is required.
Numbers show an evolutionary growth of this market, but it is necessary to make a cost and
profitability ratio. Investing in technology systems requires a high cost for companies to keep
up and running, but long term benefits are unmatched.
References
Chaffey, D., Hemphill, T., & Edmundson-Bird, D. (2019). Digital business and e-commerce
management. Harlow [etc.: Pearson.

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Erridge, A., Fee, R., & McIlroy, J. (2001). Best practice procurement: Public and private sector
perspectives. Aldershot, Hampshire, England: Gower.
Mora-Monge, C. A. (2010). The Impact of Electronic Commerce on the Supply Chain.
Bradford: Emerald Group Pub.
Neef, D. (2001). E-procurement: From strategy to implementation. Upper Saddle River, NJ:
Financial Times/Prentice Hall.
Subramaniam, C., & Shaw, M. J. (2002). A Study of the Value and Impact of B2B E-
Commerce: The Case of Web-Based Procurement. International Journal of Electronic
Commerce, 6, 4, 19-40.
Osmonbekov, T., Bello, D. C., & Gilliland, D. I. (January 01, 2002). Adoption of electronic
commerce tools in business procurement: enhanced buying center structure and
processes. Journal of Business and Industrial Marketing, 17, 151-166.
Romm, C. T., & Sudweeks, F. (1998). Doing business electronically: A global perspective of
electronic commerce. Berlin: Springer-Verlag.
Westland, J. C., & Clark, T. H. K. (1999). Global electronic commerce: Theory and case
studies. Cambridge, Mass: MIT Press.
Yen, B. P.-C., & Ng, E. O. S. (January 01, 2003). The Impact of Electronic Commerce on
Procurement. Journal of Organizational Computing and Electronic Commerce, 13, 3,
167-189.

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