From point-and-click ordering using Web-based catalogs of individual suppliers, to marketplaces that bring together in one place the products or services offered by multiple suppliers, to live auctions that determine the lowest-price bidder — there is a wide range of new e-procurement methods and tools to help businesses buy goods and services better, faster, and cheaper.
strategies, strategic supplier relationships, continuous improvement programs, and other clearly higher value activities. Figure 1. In a typical company, 75% of all invoices are for purchases of under $1,000. At an average cost of $100 to $200 or more to process the purchase order, pay the invoice, and handle all the related paperwork, this represents a tremendous overhead cost for most businesses. 3 Indeed, in many cases the cost of handling the paperwork can be greater than the value of the actual