E-sourcing in a buyer-operator-seller perspective: benefits and criticalities

More and more companies are leveraging Internet technologies in order to improve their business processes. A particular process strongly influenced by the Internet is the sourcing process, including requirements definition, suppliers scouting and qualification, request for bid, and final negotiation and selection. A number of B2B operators have started providing e-sourcing services, the most well known being electronic auctions, to allow companies to increase their efficiency in this specific process. This paper discusses this phenomenon in the Italian landscape and aims at identifying the main adopted e-sourcing services, areas of applicability of e-sourcing and electronic auctions, and finally, the main benefits and criticalities for both buyers and sellers involved in the sourcing process. This research is part of a wider project conducted by Politecnico di Milano over the period July 2002–January 2003 studying B2B interactions over the Internet. Empirical evidence is based on 24 case studies involving both B2B operators, industrial customers and suppliers.