Future for Purchasing Essay Example | Topics and Well Written Essays - 2250 words

Future for Purchasing - Essay Example But the situation changed with the introduction of Information technology, which brought significant changes in the dealings of business operations. The package it provided to an organization to overcome the limitations of traditional purchasing is 'e-purchasing'. Viewing the importance of E-Purchasing the paper tries to bring about some information on e-purchasing but specifically focusing on what an E-Purchasing actually means, how it is carried out and its overall contribution to the business in the next decade. The introduction of information technology has brought dramatic changes in the business operations. In spite of the huge investments were fabricated by the business organizations in the action ability planning arrangement implementations they could not get appropriate advice for authoritative able business decisions. But the placing of 'e' in front of any process or function proved to be the magic formula for the untold success and the rapid returns for the organizations. One such example to give is E-Purchasing. E-Purchasing is considered as the basic component of an e- procurement capability. Through e-purchasing the business organization can automate and extend the manual buying processes right from the creation of the requisition through to payment of the suppliers (Biechler, 1997). Thus the process of using of internet facility by the business organizations for purchasing goods and services is referred to as e-purchasing. E-purchasing essentially involves the buying of goods and services via internet. In other words it can be told as a system using information technology to streamline the purchase of goods and services in order to reduce costs. The internet can perform all the steps required manually for performing the purchasing function including ordering, payment and delivery. To avail this so many online banking services have been introduced by the financial institutions such as electronic bill payment, and funds transfer, so that the business can improve its operational efficiency. In accession to this the business alignment can use e-mail as a accelerated and reliable way to acquaint with suppliers or to acquire and acknowledge to chump queries like quotations, information, acquire orders, assassinate deliveries, and aggregate ante from the customers. The e-business can also make the operations of business effective through the greater use of electronic bookkeeping and records management. Thus the supplies received through internet helps to reduce the storage cost and the space required for the goods in the business organizations and thereby serving the customers faster and more effectively (Chia, 1998). E-purchasing is usually referred to as a user-friendly, Internet-based purchasing arrangement that offers e-purchase adjustment processing and added authoritative functions to the buyers that after-effects in added operational efficiencies and abeyant amount accumulation to the business organizations (Breite, 2001). The e-purchasing ability provides the Business organizati