A Business Framework for E-procurement and E-sourcing

This report presents a framework for business-to-business e-procurement and e-sourcing activities. The framework comprises of three primary elements - The first component, “electronic channels”, includes the virtual environments that organizations use to procure products and services from sellers. E-marketplaces, private exchanges, and retail Web sites are the three prominent e-procurement channels that organizations use to procure products and services. “Primary procurement processes” form the second component of the framework. Organizations employ procurement processes to procure through various electronic channels. These processes include transactional procurement, auctions and RFP processes. The third element of the framework comprises “secondary e-procurement processes”, which include collaboration and contract negotiation. Organizations use collaboration and contract negotiation during all primary e-procurement processes. The report discusses the various framework components in detail.