The Evolution of Electronic Procurement

Abstract

Electronic procurement is not new per se, and its origins can be traced back to as early as the 1960s and 1970s. This chapter goes back in time and reviews how early advances in information technology facilitated purchasing tasks already back then. Applications discussed include electronic data interchange, material requirements planning, manufacturing resource planning, and enterprise resource planning systems. Fundamental to these systems is their ability to facilitate internal and external information flows, and thus enhance strategic decision making. A particular emphasis in this chapter is placed on enterprise resource planning systems, since it is these systems that often form the backbone for electronic procurement systems.