19 October 2000
E-procurement will not reduce transaction costs if there is already a strong supply chain management system in place, according to Chris Miller, group adviser, strategic sourcing, at oil giant Shell International.
"We spent 10 years vigorously monitoring our supply chain, so when we introduced e-procurement, in terms of transaction and process efficiencies, its impact was limited," he said.
Miller warned companies not to believe the often exaggerated claims made about e-procurement systems by their suppliers.
"You've got to sound that right note of caution and euphoria. E-procurement raises high degrees of expectation and not all of that is going to be fulfilled," he said.