Comparative analysis on traditional procurement and e-procurement strategy of supply chain

With increasingly intense competition between enterprises, the realization of advanced supply chain management has become an exquisite premise for the survival of firms. Procurement management is an important means to reduce costs and to enhance the competitive advantage. By exploiting the single period newsvendor model, this paper analyses and compares the benefit mechanisms of e-procurement and traditional procurement to quantify the effect of the Internet on supply chain procurement management in a neutral e-market. This work was partly supported by the National Natural Science Foundation of China under Grant No. 70125004 and 70572050. Guangshu Chang is a lecturer of Zhengzhou Institute of Aeronautics. He received his master degree from Zhengzhou University in 2000. His research interests include e-commerce, supply chain management and quality management. Jichao Xu is a professor of Zhengzhou Institute of Aeronautics. His research interests include quality management and quality engineering. Jianfeng Yang is a PhD student of Management School, Northwestern Polytechnical University. His research interest includes quality management. Jinfeng He is a PhD student of Management School, Northwestern Polytechnical University. Her research interest includes quality management. Li Zhang is a PhD student of Management School, Northwestern Polytechnical University. Her research interest includes quality management.