Companies will buy most non-tactical products and services under master contracts. Some contracts will be negotiated by consortiums that have leverage and buying expertise. Other contracts will be with third-party companies that also have leverage and buying expertise. All transactions, releasing, receiving and accounting will be done electronically over a secure Internet-like network. (Monzcka et al. 1998)
In addition to automated purchasing of non-strategic goods, e-commerce will play a significant role in value chains for strategic items. Comprehensive specifications, tender documents and designs will be made available over the Internet, with appropriate security, to qualified bidders. Once companies are working together in alliances the use of intranets between several value chain partners will become common. The intranet will make management information, up-date processes and prices accessible and will make it easier for staff to monitor progress. These systems will improve responsiveness, reduce costs, and help all members of the value chain to add the maximum value, thus boosting the competitiveness of the entire value chain.
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