The concept of collaborative commerce isn't new—at some point, the phone, the fax, and most recently, Internet e-mail and attachments have all been considered the "latest and greatest" in c-commerce advancements.
But today, there's more of an electronic edge to c-commerce, as enterprises are turning to the Internet with e-channels, e-marketplaces, and e-trading, all propelling c-commerce initiatives into wider adoption.
By carefully choosing competent and suitable technologies, companies can enjoy significant savings from c-commerce. E-procurement solutions, for example, enable organizations to process more new contracts with less staff (processing is cut by a third), to capture all purchase orders and submit them to suppliers electronically, and to conduct billing and settlements electronically, which cuts labor costs.
In the initial installments of this six-part series on c-commerce, I focused on front-office applications, including ERP and CRM; how best to hone enterprise data for integration; and how to make applications flexible enough to fit into c-commerce initiatives.
On the back end, the key elements for a successful c-commerce initiative are an organization's supply, sales, and procurement capabilities. In this article, and the following final segments of this series, I'll examine back-office systems, including e-procurement, and the vital role they play in c-commerce efforts.
Supplier participation is a must
Procurement is a critical process within c-commerce strategies. In a sense, the technology used for procuring goods and services ties together the internal organization with its value chain. As the "face" the organization puts forth to the entire supplier community, procurement must perform two vital duties: Reduce risks and improve supplier participation.
One marketplace solution available is Ariba
Supplier Network, an e-procurement system that provides users access to a
global supplier community through a single connection. Ariba is an online commerce solutions provider
based in Sunnyvale, CA.
Suppliers dial in to the network and, after
registering, are able to receive purchase orders, upload content, help buyers
view the content behind their firewall, and authenticate and send purchase
orders in a controlled and secure environment.
The network lets both
parties (suppliers and buyers) know if a purchase order was issued and whether
it has been received. It also allows participants to make changes to orders,
send advanced ship notices, and automate invoicing.
As supplier
participation is vital for an organization’s spend-management success, Ariba
Supplier Network provides various integration solutions—from zero-cost online
tools to a complete system-to-system XML platform—to match suppliers' technology
needs. In addition, the network enables suppliers to register and transact
business free of charge.
According to Ariba Executive VP Michael Schmitt,
suppliers don't have to buy or install software or hardware, or have access to
global supplier directories, to benefit from Supplier Network. Ariba has more
than 30,000 suppliers currently signed up with the network—suppliers that are
already c-commerce ready.
The easy hookup and integration opportunity
provided by Ariba and other e-procurement networks lets suppliers bypass the
typical "supplier-enablement" issues that quash many vendors' individual
efforts, says Schmitt.
“There are two parties [suppliers and buyers] you
have to deal with,” he explains. “And then there are problems with trust,
disparate data models, and disparate technologies.”
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