Comparative analysis on traditional procurement and e-procurement strategy of supply chain

Abstract

With increasingly intense competition between enterprises, the realization of advanced supply chain management has become an exquisite premise for the survival of firms. Procurement management is an important means to reduce costs and to enhance the competitive advantage. By exploiting the single period newsvendor model, this paper analyses and compares the benefit mechanisms of e-procurement and traditional procurement to quantify the effect of the Internet on supply chain procurement management in a neutral e-market.

Keywords

Supply chain / procurement management / e-procurement / newsvendor model

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