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Information technology

4.4 Upstream supply chain management: E-procurement

The term e-procurement is used to describe the electronic methods
used in every stage of the procurement process, from the identification
of the organisation’s requirements through to payment.

E-procurement can therefore have several main applications:

 Electronic Data Interchange (EDI) – link the organisation’s systems to those of
its suppliers.

 Use of the internet – to shop around for suppliers.

 Disintermediation – buy from suppliers further up the supply chain to reduce
costs.

4.5 Other uses of IT within the upstream supply chain

 Communication – email and other IT-based communication can speed up the
flow of information between the organisation and its suppliers.

 Information gathering – gathering and processing of information relating to the
upstream supply chain.

 Extranets – allow the organisation to grant suppliers access to information to aid
collaboration.

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