Successful Use of eProcurement in Supply Chains

Optimizing the internal supply chain for direct or production goods was a major element during the implementation of enterprise resource planning systems (ERP) which has taken place since the late 1980s. However, supply chains to the suppliers of indirect materials were not usually included due to low transaction volumes, low product values and low strategic importance of these goods. With the advent of the Internet, systems for streamlining indirect goods supply chains emerged and were adopted by many companies. In view of the paperprone processes in many companies, the implementation of these electronic procurement systems led to substantial improvement potentials. This research reports the quantitative and qualitative results of a benchmarking study which explores the use of the Internet in procurement (eProcurement). Among the major goals are to obtain more insight on how European and North American companies used and introduced eProcurement solutions as well as how these systems enhanced the procurement function. The analysis presents a heterogeneous picture and shows that all analyzed solutions emphasize different parts of the procurement and coordination process. Based on interviews and case studies the research proposes an initial set of generalized success factors which may improve future implementations and stimulate further success factor research.