The impact of using an e-Marketplace in the construction supply process: Lessons from a case study. http://link.aip.org/link/doi/10.1061/(ASCE)0742-597X(2009)25:4(214)

Abstract

The procurement process is critical for construction companies. In order to
improve it, many are resorting to e-marketplaces although they usually do
not know exactly how much they can gain by doing so. This paper describes a
study that measured the benefits of using an e-marketplace to support the
procurement process of a construction company. The study included three
marketplaces currently operating in Chile. However, in this paper we focus
on Iconstruye, the most important one. 70 executives and professionals from
25 construction companies randomly selected from the 89 that used this
marketplace, were interviewed and asked to fill a questionnaire. This data
was validated using data from Iconstruye and from 33 suppliers. The results
show that the adoption of an e-marketplace reduces turnaround time, errors,
urgent orders, and irregular purchases. A more reliable procurement process
directly contributes to a leaner construction process by reducing upstream
variability, procurement cycle times, and the need for large inventories on
site. Users also perceive an improvement in certain global indicators when
using an e-marketplace.