Impact of E-Sourcing on Supplier Relationships

Author(s):

Roopa Gandhi Makhija
Roopa Gandhi Makhija, President, Global eProcure, Clark, NJ 07066, Roopa.Makhija@globaleprocure.com, 732 382 6565

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

Abstract

Companies are increasingly looking at e-sourcing and reverse auctions as a means by which to reduce their procurement expenses and provide bottom line savings to the organization in a relatively short time. However, this has sometimes led to resistance among suppliers who believe that e-sourcing results in commoditization of goods and services, lack of appreciation of value-added services, and in negative impacts on buyer-supplier relationships. This seminar discusses the likely impacts of e-sourcing and reverse auctions on supplier relationships. It also presents short and long-term strategies to both buyers and suppliers to minimize costs and maximize collaboration / benefits.