Electronic procurement applications and their impact on supplier relationship management

The emergence of new electronic procurement applications and the rise of existing ones to their full potential have been revolutionising the disciplines of procurement and supplier relationship management. To date, however, very little research has been conducted regarding the impact of electronic procurement on supplier relationships. This paper lays the foundation for a more fine-tuned assessment on the impact of electronic procurement on the relationship companies maintain with their suppliers. Our investigation results in a framework that takes into account various influences. Different electronic procurement applications (private networks, electronic catalogues and electronic marketplaces) affect the relationship with suppliers in different ways depending on the transaction phase within the procurement process (the development phase or the industrialisation phase) and depending on the nature of the product or service being procured (low involvement or high involvement). Even though separating the interdependencies that exist between different influences for scientific research as well as day-to-day practice is a problem, our findings nevertheless confirm the need for a more selective view of electronic procurement applications.