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Buyers become more selective in online tools Maria Varmazis
Back in 2003, buyers were overwhelmingly optimistic and eager to make the most use of online tools, but two years later, readers taking PURCHASING magazine's Benchmark Survey on E-Sourcing Strategy show declining interest and enthusiasm for most online tools. Coupled with a marked decline of buyer confidence in having the skills needed to make the best use of Web-based tools for sourcing and procurement, the novelty of the Internet may be starting to wear off with buyers, now wary of the pros and cons of what the Web brings to the table.
Last year about three-quarters of survey respondents said they felt "adequately skilled to make the best use of Internet or Web-based tools for sourcing and procurement," but this year that number dropped to 47% and buyers are reluctant to comment further in follow-up interviews.
Perhaps related to the drop in buyer confidence regarding online tools is the marked drop in use of tools such as e-auctions. This year, 59% of buyers polled said they won't use reverse e-auctions. Andy Nicoletti, purchasing manager at Haartz Corp. in Acton, Mass., says that online auctions are "inefficient and do not serve as the best buying tool." He explains that "we feel e-bidding drives suppliers to developing a product which meets only one target: price. In today's environment of rising materials, energy, and transportation costs, the lowest price does not necessarily equate to greatest value for an organization. The e-bid process is not used to avoid losing total system value."
Full story at: http://www.purchasing.....ryid=23508 |
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