Integration of E-commerce and E-procurement in Supply Chain Operations


Supply chain operations have been mainly known to exhibit customer gaps in the form of transaction confusion, fraud, and chargeback disputes. Electronic procurement describes the process of selling and buying services or supplies over the internet. On the other hand, E-commerce is the transfer of funds/ data or buying and selling of goods over an electronic network.

E-procurement facilitates the creation of interactions via links. Due to the advancement of modern technology, E-procurement systems have enabled the conducting of businesses virtually and remotely. As a result, buyers and merchants/suppliers can easily interact online and shop with confidence.

Electronic commerce entails business transactions that occur either as business-to-business, business-to-customer, customer-to-business, or customer-to-customer. Through electronic interaction and purchases, consumers and sellers can easily attain transparency, whereas costs are reduced.

Online retail shopping

Global connectivity and the adoption of new technology have initiated the increase in online business. However, electronic procurement differs from e-commerce in that it makes use of a supplier-closed system.

E-commerce transactional processes and business have contributed to enormous growth in the retail industry. The use of e-commerce platforms such as eBay and Amazon has led to an increase in retail sales. For instance, in 2019, e-commerce made up 16% of retail sales.

Buying goods and services via electronic commerce primarily depends on the internet. Customers access online stores, select required goods, and place orders from the convenience of their devices. Placed orders are relayed to the order manager’s computer. A merchant system manages the payment information.

On validation of orders, the order manager notifies the store’s webserver to showcase that the order has been processed successfully. Then, the order data is sent to the warehouse for dispatch to the customer.

Benefits of Electronic procurement/commerce

Cost-saving: The electronic systems integrate monitoring tools that help control costs, whereas performance is maximized. The fully automated system reduces overhead and paperwork through a streamlined process.

Transparency: With consumers and buyers accessing information from the centralized database, clarity is exhibited. Clear and transparent ways of transacting necessitate improved business productivity.

Fewer chargeback disputes: Online merchant transaction systems can mitigate disputes arising from unnecessary transaction confusion by using electronic systems. Through the integration of online interaction, chargeback services such as chargeback disputes and chargeback costs are minimized.

Improved customer experience: Customers are a crucial part of every business. Most buyers tend to source goods and services from the most reliable and detail-oriented seller. Thus, with proper electronic commerce and procurement systems, buyers will be more satisfied.

Reduced fraud: Corruption and fraud in buying goods and services have significantly impacted procurement operations. Merchant fraud protection has integrated monitoring tools that provide an extra secure channel to reduce fraud within the procurement and transaction systems.

Improved inventory control: E-commerce can quickly locate transaction data and supply details within the online systems; thus, product inventories are better controlled.

Shorter Purchasing Cycles: Consumers have electronic access to available services and products. E-commerce simplifies business processes in a fast and efficient manner.


Electronic procurement boasts an increase in productivity within supply chain operations. As a result, electronic procurement provides substantial benefits within the purchasing organization and helps procurement management.

Integrating E-commerce in business is essential in improving brand image, whereas customer service is enhanced. Moreover, both e-commerce and e-procurement reduce the paperwork.