E-procurement and human moments, and its impact on smaller industrial distributors Online publication date: Sat, 31-Jan-2015
by Alan D. Smith
International Journal of Procurement Management (IJPM), Vol. 4, No. 5, 2011
Abstract: The emergence of web-enabled customers in industrial distribution is particularly a major force with smaller distributors, causing management to rethink their overall business strategy in more price sensitive marketplace. An empirical study was preformed using multiple linear regression and data-reduction analyses to test these trends among age, experience, product selection, destruction of face-to-face interactions, and technological sophistication. There was significant evidence to support the adoption of e-procurement applications with smaller industrial distributors, especially in the current highly competitive and economically challenging environments. Although a low-cost strategy is not considered a sustainable approach, since premium pricing strategies among retaining existing customers usually nets greater profit margins, the low-cost approach is being rapidly forced upon them, with adopting e-procurement technologies as the potential solution.
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