ABSTRACT

This chapter deals with the logistics aspects of purchasing, with or without the aid of e-procurement tools. It explains the distinction between commercial purchasing and purchasing logistics. The chapter summarizes the responsibilities of a purchasing department. It describes three main forms of e-procurement. E-procurement is the application of e-business to the discipline of purchasing. Electronic purchasing is also described as purchasing with the aid of internet technology. J. Harink makes a distinction between three main forms of e-procurement, namely: sourcing catalog services, electronic tendering and ordering catalog systems. Harink concludes that ordering catalog systems offer the most prospects to purchasing organizations. This is mainly expressed in savings in two types of costs: internal costs and external costs. Developments in the area of the management of the goods flow, such as material requirements planning and just-in-time, force businesses to judge suppliers on many more aspects than price alone.