Uncovering the strategic domain of e-procurement

The strategic alignment between e-procurement applications and business strategy domains are in focus for this paper. This paper examines the functionality and value adding mechanisms of the following e-procurement applications: e-sourcing, e-tendering, e-MRO, web-based ERP, e-reversed auctions and e-informing. The e-procurement applications are then put in relation, based on value adding mechanism, to the strategic domains of competitive forces, resource based perspective and to hypercompetition. This makes it possible to assess how well a certain application is aligned with the business strategy. It is imperative that the value adding mechanism is known and understood as it has a great impact on the supplier relationship.