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Sulagna Datta
Sreedev Basu
Tamaraselvi Arumugam
Venkatesh Balakrishnan
Ramzi Benzaci
QUESTION 1: What are the benefits of the e-procurement systems for the
Airlines Purchasing Department?
There were a lot of benefits expected for the APD or Airline Purchasing Department.
Some of these are :
1.
2.
3.
4.
Case already suggest using category 1) Time savings as a financial metric, and
gives a sample calculation in Exhibit 10 showing the reduction in transaction cost
from HK$ 205.8 to HK$83.0.
Apart from Time, two other possible metrics, from our above classification, could be:
2) Money amount saved from reductions in administrative costs, and the
money saved by negotiating better deals due to the extra bargaining power.
3) Opportunity Cost value of the other strategic tasks that are now
accomplished using staff freed up by CXeBuy