a. Public Web
By public web (Internet), buyers have the opportunity to identify the potential suppliers by using search tool such as Google.com, Yahoo.com or special search tool for transactions such as kellys.co.uk. On-line searches help to find the price comparisons about such as price lists, especially to buy specific goods. The orders can be done on-line by e-mail, or with more traditional methods such as telephone or fax.
The terminology of exchange in this case refers to where different parties perform the transaction, such as eBay auctions and B2B auctions which provides Free Market and Synerdal. The sites allow the buyers or sellers to bargain the contract. eBay offers products sold privately as well as commercial sellers. Meanwhile B2B provides the auction cancellation. The on-line cancellations have been successfully reduced the buying price.
Market (marketplace) is a place where there are a lot of suppliers and products (multi-supplier/multi-products). Marketplace is often occupied and managed by a third party who has the access to the users through the internet or LAN.
d. Company Hub
Often called ―buy-side‖, Company hub is almost the same as marketplace, because the buyer (more than as a third party) takes the role as a host and manages the catalog or the list of multi-supplier/multi-product.
Extranet is a protector which protects the internet link between the buyer and the seller. Extranet is usually used to share data and to colaborate, such as to send data about distribution schedules and production designs. Pre-internet, link EDI (Electronic Data Interchange) gives a type of an extranet connection dedicated to an individual customer. Even though there are still some remainders related to World Wide Web transmission, extranet gives effective purpose of communication among transaction partners.
The objective of the implementation of e-procurement in the public sector is reformation process of goods and services procurement. From the various studies done based on the experience of the countries around the world, the implementation of e-procurement is to prevent or to reduce the level of corruption. Neupane, et. Al (2005). E-procurement can improve the efficiency over traditional procurement methods (Chang, 2011 and Hanna, 2010). The process of goods and services procurement electronically has obviously omitted the use of paper for the providers or the budget users. The providers just upload all documents by the existing website without coming to the office. E-procurement can also reduce the less necessary projects (Achterstraat, 2011). With e-proc, only the projects needed by the people need be sold at auction. However, this assumption is only valid in the economically advanced countries. In developing countries, many projects are proposed by politicians for their personal interests (Murray, 2007).