PracticePeople In PracticeSecurity still an obstacle to e-procurement

Security still an obstacle to e-procurement

Concerns over security and integrity of trading partners are the biggest obstacles to the expected growth in business-to-business procurement over the Internet, according to PricewaterhouseCoopers.

A survey undertaken for the firm shows that although still in its infancy, the e-procurement market has massive potential and is set to double by the end of 2001. At present only about five per cent of companies’ spending is with online suppliers.

By 2001, 62% of all companies expect to be conducting as much as a third of their spending with suppliers electronically.

More than a third of the 400 European businesses polled cited issues surrounding online security as undermining the trust between their companies and their trading partners, thereby holding them back from doing more business online.

‘On the face of it this is good news for the bricks-and-mortar companies and bad news for the dot.coms,’ said Chris Potter, PwC partner responsible for e-business risk management and security services in the UK.

‘In the virtual, online world, trust will have to be redefined and the physical world aspects replaced by the use of digital certificates, web seals and risk management processes to secure the electronic relationship.’

E-procurement set to slash SME costs

PwC partners hail e-business savings

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