Title: E-procurement and automatic identification: enhancing supply chain management in the healthcare industry

Authors: Alan D. Smith, Frank R. Flanegin

Addresses: Department of Management and Marketing, Robert Morris University, Pittsburgh, PA 15219-3099, USA. ' Department of Finance, Robert Morris University, Pittsburgh, PA 15219-3099, USA

Abstract: The concepts of automated e-procurement, or electronic B2B (business-to-business) trade, are grounded in the strategic leveraging of both tangible/intangible assets for successful implementation and execution of electronic trade, resulting in significant financial benefits for firms. Some of the major reasons for this growth include significant process savings from automation, compliance, and purchasing advantage; and reduced costs that organisations can experience by conducting transactions electronically. Although these are the basic benefits associated with generic e-commerce strategies, a majority of these B2B transactions have focused on the purchase of indirect materials (especially office products and travel services). In fact, more than 93% of medical supplies on hospital shelves appear to have universal product numbers on them - at least while still in their boxes and there is a great potential for huge savings in e-procurement in the healthcare field. However, other types of supply chain-related purchases, including maintenance, repair, and operating and replacement parts, and direct material purchases, are becoming more important operational management considerations. In addition, several other key considerations are: existing procurement strategy, the vendor, technology, suppliers, and total costs of ownership. Companies need to analyse their current procurement strategy before developing an e-procurement plan.

Keywords: electronic B2B trade; e-procurement strategies; Freemarkets.com; resource-based view of the firm; supply-chain management; SCM; e-healthcare; electronic healthcare; operations management; automatic identification, autoID; data capture.

DOI: 10.1504/IJEH.2004.005866

International Journal of Electronic Healthcare, 2004 Vol.1 No.2, pp.176 - 198

Published online: 23 Dec 2004 *

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