Some companies are now our partners, our customers, our suppliers and our competitors. (Bonfield, 1999)
E-commerce may be used simply as a way of reducing staffing costs rather than of increasing value added. For instance automated purchasing of tactical and commodity items can be used as a way to reduce the prices paid without the necessary pre-selection of qualified suppliers and careful measurement of performance needed to ensure maximum value. Management of relationships among customers, suppliers, and competitors is likely to be combined in one function to reduce costs, maintain a knowledge base and allow for rapid strategic changes. Cost competition will favour organisations that use their knowledge effectively and value these key staff.
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