Current Trends and Challenges in Electronic Procurement: An Empirical Study

Abstract

A b s t r a c t This paper presents results from a longitudinal study on the use of ICT for B2B-related business processes in large Swiss companies.In an empirical survey, 68 questionnaires were personally collected from procurement heads and subsequently analysed. The study was initiated by industry partners who wanted to gain more detailed knowledge about the maturity of e-procurement in the Swiss market. Based on an extensive literature review and previous empirical studies, we developed a research framework addressing strategic as well as operational issues. The findings show that reduction of purchase prices is the top priority when setting procurement goals. For 78.2% of the respondents IT makes an important contribution to successfully carrying out the procurement function. Nevertheless, these companies are striving for further optimization and improved process integration. Electronic exchange of invoices (e-invoicing) is a current key topic for over 70% of the companies. Procurement heads sense a lack of supplier involvement, which makes the realization of balanced B2B solution scenarios difficult. The study shows that IT, without doubt, plays a significant role in everyday procurement, but that the expectations of IT are rarely completely fulfilled.

Estimating the Benefits and Risks of Implementing E-Procurement

“…In many cases, the real benefits are not identified, resulting in companies not recognizing the true value of e-procurement [20]. A recent study showed that IT plays a significant role in everyday procurement, but the expectations of IT are rarely completely fulfilled [21].…”

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

“…In a study of Australian organisations, Williams & Hardy (2007) identified that the most important factor for buyers in e-procurement adoption was reduction of prices. The study by Tanner et al (2008) found that in e-procurement adoption, reduction in purchasing price was the highest priority amongst twelve cited goals for e-procurement. De Boer at al (2002) build a model to illustrate how different e-procurement mechanisms impact on prices.…”

“…Reduction in purchasing price was highest priority amongst twelve cited goals for e-procurement (Tanner et al, 2008) Model to illustrate how different eprocurement mechanisms impact on prices (de Boer et al, 2002) In reverse auctions, price reductions can be achieved, subject to factors such as commodity, competition and supplier numbers (Emiliani, 2000;Carter et al 2004;Smart & Harrison, 2003) …”

Electronic Procurement: Dealing with Supplier Adoption

“…The integration solutions are not always offered appropriate to suppliers and the majority of companies agree that the position of the suppliers is insufficiently considered (Tanner et al, 2008).…”

“…According to Tanner et al (2008) a main objection of e-Procurement in organizations is the high installation costs of new solutions and it must be taken seriously. The cause, is the high heterogeneity of the supplier and buyer IT environments, organizational structures and business processes.…”