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The worldwide reach of the Internet has meant that procurements for even quite small companies can easily take on a global dimension and are increasingly sophisticated in the methods which they use.

We’ve all seen the rapid increase in India outsourcing and even “man and a dog” outfits regularly outsource aspects of their Internet presence to one of a rapidly growing number of outsourcing companies based in India. Here the reason is first and foremost the much lower cost of having the work done in India and with that lower cost base you can reduce your own prices of course.

Aside from the outsourcing, those small companies can also add levels of sophistication to their e-procurement hitherto only seen use in the largest of companies and rarely even then. This is made possible through the move online of procurement and bidding activity by companies of all sizes and it’s increasingly common to have, for example, reverse auctions incorporated as standard into procurement processes along with various options that simply would not have been practical even ten years ago.

Do you need all this? Well, yes, you do because your competitors are already using these methods to drive down their cost base both through the outsourcing of non-core business activities and through various online procurements which reduce the cost of their raw materials often quite substantially.

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