Types of Electronic Commerce Purchases

Types of Electronic Commerce Purchases

Now that we have computer and communication systems to facilitate the management of the areas outlined previously, the question becomes: What is being purchased? The following chart outlines the different types of purchases that an organization makes.

What businesses are buying

Type Definition Example
Direct materials Raw materials and components that end up being part of the organization's final product. Aluminum and other parts to make an airplane; fabric for a clothes manufacturer; computer parts for a computer maker.
Capital equipment Items that have substantial value and an extended life. Computers, machinery, office furniture.
Operating supplies Supplies consumed for business purposes, but not used in the manufacture of the final products or the maintenance of facilities. Paper, toner, office supplies, travel expenses.
Maintenance and repair supplies Supplies consumed to maintain the manufacturing process, equipment, and facilities. Lubricants, motors, janitorial supplies, filters, paint.
Services Labor provided to the organization by people who are not employees of the organization. Contract legal, IT, and other professional and temporary people.
Facilities and equipment rental and lease. Facilities and equipment that are rented or leased for an extended period of time. Warehouse space, additional office space, vehicles, large equipment items.
Other General category. Sale or purchase of surplus items or infrequent spot purchases.

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Microsoft Corporation - Microsoft. Net Server Solutions for the Enterprise
Microsoft .NET Server Solutions for the Enterprise
ISBN: 0735615691
EAN: 2147483647
Year: 2002
Pages: 483

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