By the end of this section, you should be able to:
1. Describe e-catalogues, e-auction and reverse auctions.
2. Describe e-sourcing and the transformation of the procurement system.
All over the world, the way business is carried out is changing with the use of information technology. Most businesses now have to compete in a global environment. A properly thought through Information Technology (IT) strategy is essential to facilitate this. Similarly, a properly implemented IT can fundamentally change the nature of a business and the way it is managed.
One of the most critical ways IT affects business is in changing the relationship between suppliers and customers, in particular the ways that customers buy from firms and how suppliers interact with buyers. As we look into the future, the traditional procurement approach will be transformed into e-sourcing.