E-Commerce Applications in Construction

Cultural barriers are a primary hurdle to overcome in implementing an e-Commerce solution. Top management must be engaged in supporting the implementation of an e-Commerce solution. However it is equally important that the change be managed and communicated not only throughout the implementing organization but also with the ancillary stakeholders such as the suppliers themselves. (RS180-1, p. 5)

Pressure may be applied to the overall effectiveness of the supply chain when suppliers must conform to the numerous e-Commerce systems being implemented by the owners. The suppliers are obligated to utilize these new tools but due to the lack of a standardized solution this may require suppliers to learn many different systems and processes. This is referred to as the “one-to-N” issue. The problems are magnified with local or regional suppliers that are unable to map their catalog to each of the buyer’s catalogs. (RS180-1, p. 4)

Owner A found key learning points (RS180-1, p. 6):

• First was the need to assess the current organization and processes thoroughly. The focus was on purchasing of raw materials, equipment, construction services, and indirects. In this regard, it found that a centralized purchasing structure favors e-procurement and vice versa. 
• Second was to build an e-procurement strategy to match the needs of the organization and its projects, which includes business drivers, cost, global needs, among others.