E-Sourcing for the Middle Market

Author(s):

Subhash Makhija
Subhash Makhija, CEO, Global eProcure, Clark, NJ 07066, 732/382-6565, subhash.makhija@globaleprocure.com
Larry R. Smeltzer
Larry R. Smeltzer, Professor of Supply Chain Management, Arizona State University, Tempe, AZ 85287, 480/965-6824, larry.smeltzer@asu.edu

87th Annual International Conference Proceedings - 2002 - San Francisco, CA

Abstract

Unlike Fortune 500 companies, middle market companies typically have a lower spend and struggle with whether an eSourcing program will be beneficial. Companies with an annual spend of as little as $20 MM have successfully used eSourcing processes to obtain a significant ROI. On the other hand, some companies with a annual spend of $1 billion have not succeeded in eSourcing. This paper addresses the following questions. Is my business suitable for eSourcing? How do I create a successful business case for eSourcing? Do I need to install an ERP system to run a successful eSourcing program? What eSourcing process should I follow? How do I select an eSourcing service provider?