"e-ProcurementThe traditional manual purchasing system is a tedious and labour-intensive task ofissuing material requisitions and purchase orders. Although EDI (electronic datainterchange) has solved some of these problems, its proprietary nature requires a highstart-up cost, making it inaccessible to small firms with limited budgets. Internet-basede-procurement systems have changed the infrastructure requirement, making it readilyaffordable to most firms. Benefits derived from implementing an e-procurement systeminclude:? o Time savingso Cost savingso Accuracyo Real timeo Mobilityo Trackabilityo Managemento Benefits to the suppliers5 Sourcing Decisions flickr photo sharedby jev55 under a Creative Commons ( BY-NC ) license[This page should take about 40 minutes to complete]The term outsourcing is commonly used to refer to buying materials or components fromsuppliers instead of making them in-house. The trend has been moving toward outsourcingcombined with the creation of supply chain relationships to replace the practice of backwardor forward vertical integration. Backward vertical integration refers to acquiring upstreamsuppliers, whereas forward vertical integration refers to acquiring downstream customers. Forexample, an end-product manufacturer acquiring a supplier’s operations that suppliedcomponent parts is an example of backward integration. Acquiring a distributor or otheroutbound logistics providers would be an example of forward integration.The make or buy decision is a strategic one that can impact an organisation’s competitiveposition. It is obvious that most organisations buy their maintenance, repair and operations(MRO) and office supplies rather than make the items themselves. Similarly, seafoodrestaurants usually buy their fresh seafood from fish markets. However, the decision on whether to make or buy technically advanced engineering parts that impact the firm’scompetitive position is a complex one.5 Sourcing Decisions5.1 Sourcing Decisions: Theoretical Frameworks[This page should take about 1 hour to complete](Adapted from Klien, P. 2005. The Make-or-Buy Decision: Lessons from Empirical Studies C. Menard and M. M. Shirley (eds.), Handbook of New Institutional Economics, Springer435–464)Several theoretical frameworks have been discussed within the literature to inform make orbuy decisions at the strategic level. These theoretical frameworks enable us to better identify,understand and assess the strategic risks and benefits of insourcing and outsourcing: "