Title:
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Development of E-sourcing For Textile Industry
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Traditionally, sourcing is initiated predominantly through trade shows where many
suppliers make themselves available to buyers. Nowadays the Internet has changed
the way business is conducted by facilitating the further evolution of new buyer and
supplier relationships. Ease and convenience of information exchange, timesaving,
lower costs. enhanced purchasing and marketing research have encouraged the use of
the Internet as an alternative to buying, selling and sourcing through conventional
channels.
E-sourcing is mainly based on reverse-auction technology which automates the price
negotiation in the supplier selection process. However, the function of the reverseauction
is directed towards finding new suppliers with little consideration of supplier
evaluation and collaboration. Thus it is mainly dedicated to indirectly-sourced
materials such as office supplies and spare parts. Although the reverse auction can be
used to source some direct materials, the system has neglected the sourcing process in
respect of customised products where collaboration is needed. Furthermore, in the
reverse-auction system, supplier evaluation is based only by the price of the product;
neglecting other factors that influence buying decisions.
Based on the purchasing process and on the way business is commonly conducted by
large organisations. software has been developed which incorporates a user feedback
facility so that confidence can be gained by the participants. Such an implementation
enables the buyer to analyse supplier reliability by using its evaluation statistics. This
approach changes the way that the buyer and supplier make initial contact. It replaces
the traditional character assessment cues which rely on gut feeling, word of mouth.
and visual perception This new computer-based approach will provide company
performance information which will help the buyer to select an appropriate supplier
and, may ultimately change the way in which companies source materials.
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