eCommerce and eProcurement: two sides of the same coin?

Yoav Kutner, CEO and Co-Founder, Oro.Inc, analyses if there really is a difference between eCommerce and eProcurement, or are we just talking semantics?

As technology in all its forms is helping us streamline many back-office operations, we’re witnessing new concepts and models emerge in the digital era. The prevalence of digital tools is making procurement more convenient than ever, and over the past few decades, the way we conduct sales has changed radically – leading to the rise of eCommerce and eProcurement.

Before Covid-19, eProcurement sales were already growing by 17.6%, surpassing the $700million mark; and in the US, eProcurement remains the fastest-growing B2B selling channel. Like eCommerce, eProcurement is the process of buying and selling goods or services online, but the difference is that only registered users are allowed to use the supplier’s system.

Companies can utilise a cloud-based procurement management system to automate lengthy processes freeing up capital and staff for other purposes. In addition to improving procurement workflow by decentralisation and user self-service, businesses can continuously monitor their

purchasing behaviour to prevent maverick spending, consolidate suppliers and connect with external supply chains.

Both eProcurement and eCommerce systems are routinely used in B2B commerce. Medium to large size companies and supply chain participants use them for sales, marketing and purchasing. However, in B2B, relationships aren’t so cut-and-dry. For every sale by one party, there is a purchase by another, often a very different party. These are the two sides (buyer and seller) of the same coin (the purchase/sale transaction).

Aside from having some similarities, both eProcurement and B2B eCommerce systems have differences. Both have features and capabilities that make them unique. All B2B eCommerce platforms can handle online transactions and some eProcurement systems do this too. Some eCommerce systems, such as OroCommerce, can handle requests for quotation workflows, but all eProcurement systems […]

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