Why is an online procurement community needed in the furniture and machinery industry?
Costs for purchased goods & services represent a significant percentage of total operating expenses for all furniture, machinery and woodworking industries. That percentage is higher when costs related to the process of procurement are considered. These are costs associated with identifying the right supplier and processing paperwork; transporting goods and services: and holding goods in inventory over time. Moving procurement to the Internet can significantly reduce TCO for key inputs by automating manual tasks, enlarging the universe of trading partners (thereby increasing opportunity), and enabling greater opportunity for aggregate purchasing and collaboration. For example, buyers benefit from expanded access to a greater number of suppliers, and from increased speed and effectiveness during the sourcing and purchasing process. Suppliers can reduce printing and distribution cost by publishing their catalogues electronically, in a central repository on the online marketplace. Both bu
