Advantages of online procurement

Compared with traditional procurement methods, online procurement has the following advantages:

1. Enterprises can find more suppliers online, even all over the country. The range of choices has greatly increased.

2. Due to the high efficiency of Internet and quick information exposure, the procurement time is generally shortened;

3. There are a large number of suppliers in the procurement network, so enterprises can get the best price and reduce the procurement cost;

4. The online purchasing cycle is short and the operation is fast, which makes it possible for enterprises to have zero inventory;

5. Online transactions make transactions more transparent and reduce the possibility of black-box operation.

Research shows that online purchasing can reduce the purchasing cost by 70% and the product cost by 5%- 15%. For example, the net income of Ford Motor Company 1999 is $7.2 billion, but the purchase amount is as high as $90 billion. If we control the cost in the traditional way, we can only save $2.2 billion, while Ford saves $60 through the combination of competitive procurement and online procurement. It can be seen that greatly reducing the procurement cost is the core driving force to promote enterprises to adopt online procurement.