Gartner Research

Healy Hudson Prepares for the Next Battleground in E-Procurement: Strategic Sourcing

Published: 31 October 2000

ID: G00190749

Analyst(s): Pierre Mitchell

Summary

As e-commerce application vendors increase efforts toward their quest of providing users with value, the focus has returned to the enterprise and to business processes with high liquidity and leverage. For procurement and the inbound supply chain, the new business process focus is on strategic sourcing. Improving purchase order processing efficiency is important, but sourcing is actually the ROI engine that provides the hard dollar savings for indirect procurement improvement projects powered by much publicised application vendors like Commerce One and Ariba. As such, all classes of vendors, including ePLM, supply chain, ERP, and e-commerce, are beginning to provide technology that supports strategic sourcing. This e-sourcing market is characterized by electronic supplier directories, RFQ and negotiation tools, contract management systems, and platforms for managing supplier relationships.

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