Successful use of e‐procurement in supply chains

Abstract

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.

Public e-procurement impacts in small- and medium-enterprises

“…1 Transaction costs reduction: cost-related benefits have been mentioned by a number of authors (e.g., Croom and Johnston, 2003;Presutti, 2003;Yen and Ng, 2003;Hawking et al, 2004;Puschmann and Alt, 2005;Tatsis et al, 2006;Croom and Brandon-Jones, 2007;McConnell, 2009;Karthik and Kumar, 2013) and include reduced price, administration and inventory costs, and inaccuracies (Smart and Harrison, 2003).…”

“…Apart from positive impacts which facilitate Pe-P's adoption, a range of authors (e.g., MacManus, 2002;Zheng et al, 2004;Puschmann and Alt, 2005;Tatsis et al, 2006;McConnell, 2009) has identified a number of general inhibitors, which include:…”

E-procurement and its impact on supply management – evidence from industrial case studies

“…In a study of e-procurement in public sector organisations in the UK, Croom and Brandon-Jones (2007) found that increases in communication between customers and suppliers assisted knowledge sharing. Information provision in areas such as forecasts and inventory management can enable collaboration between buyers and suppliers (Puschmann & Alt, 2005). Similarly, data exchanged on demand or raw materials flow can assist with co-ordination of production for both trading partners (Lancioni et al, 2003).…”

A Systematic Literature Review of Flexible E-Procurement Marketplace

“…In order for any digital engagement in business activities, the channel of communication had to be negotiated [27]. With the implementation of enterprise resource planning (ERP) or manufacturing resource planning (MRP) systems in the 1980s electronic data interchange (EDI) connections with suppliers were established [84]. Technology at this point did not provide the open interfaces necessary for flexible business connectivity.…”

“…Although connected common messaging formats for encoding business activities are not developed and open communication could not be established [27]. Relationships with business partners were designed in indirect procurement [84]. Indirect procurement focused on products and services for maintenance, repair and operations (MRO) and products and services that are neither part of the end product nor resold directly [111].…”