Electronic purchasing (EP), also known as electronic ordering through catalogs is the most established form of e-procurement nowadays, yet still in its infancy. Theoretically, changing from the "traditional" way of purchasing to EP can lead to huge cost savings. However the implementation (roll-out) of EP including many commodity groups and many departments is a large and costly task. In addition, not much experience on good roll-out strategies is available yet. This paper contributes to the solution of this problem, by presenting a mathematical model for determining the optimal EP roll-out strategy into an organisation based on maximisation of the cost savings. Results from this model suggest that the optimal order of commodity groups and departments for which EP is implemented can contribute considerably to the possible savings that can be realised and is therefore an important factor for a successful implementation strategy of EP.
|Journal||European journal of purchasing and supply management|
|Publication status||Published - 2002|