Development of E-sourcing For Textile Industry

• Main Author: Wibawa, Marcus Gunadi
• Published: University of Manchester 2004
• Subjects: 338.6041
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.525178

Traditionally, sourcing is initiated predominantly through trade shows where many suppliers make themselves available to buyers. Nowadays the Internet has changed the way business is conducted by facilitating the further evolution of new buyer and supplier relationships. Ease and convenience of information exchange, timesaving, lower costs. enhanced purchasing and marketing research have encouraged the use of the Internet as an alternative to buying, selling and sourcing through conventional channels. E-sourcing is mainly based on reverse-auction technology which automates the price negotiation in the supplier selection process. However, the function of the reverseauction is directed towards finding new suppliers with little consideration of supplier evaluation and collaboration. Thus it is mainly dedicated to indirectly-sourced materials such as office supplies and spare parts. Although the reverse auction can be used to source some direct materials, the system has neglected the sourcing process in respect of customised products where collaboration is needed. Furthermore, in the reverse-auction system, supplier evaluation is based only by the price of the product; neglecting other factors that influence buying decisions. Based on the purchasing process and on the way business is commonly conducted by large organisations. software has been developed which incorporates a user feedback facility so that confidence can be gained by the participants. Such an implementation enables the buyer to analyse supplier reliability by using its evaluation statistics. This approach changes the way that the buyer and supplier make initial contact. It replaces the traditional character assessment cues which rely on gut feeling, word of mouth. and visual perception This new computer-based approach will provide company performance information which will help the buyer to select an appropriate supplier and, may ultimately change the way in which companies source materials.