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The Role of E-procurement in Supply Chains

• First Online: 30 March 2022

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• Arash Shahin 4 ,
• Hadi Balouei Jamkhaneh 5 &
• Reza Shahin 6  

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 420))

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A procurement system is a crucial part of supply chain management in firms. International companies are looking forward to how much it is possible to save through implementing the strategies of e-procurement fully. In this paper, we study e-procurement and its application along with its added value for the firms. In addition, we discuss its drivers and barriers as well as demonstrating a supplier selection framework. We also adopt Critical Success Factors (CSF) for e-procurement. Findings indicate that e-procurement will decrease lead time, providing agility for the supply chain management. Added values are: strategic, operational and opportunity which varies depending on to what extent each organization emphasizes it and implements it. E-procurement systems implementation is hard due to its barriers by various technologies, varied organizational culture and changing users’ interacting skills with Information systems/technologies. E-procurement is a complex system in firms and firms’ staff are the main contributors of the technology. We need to write down the hierarchy tree and have a category titled “electronic transaction” that can help for quantitative decision making for the supplier selection in the e-procurement process. We found that all of the CSFs are not crucial in all of the firms and indicators for performance should be categorized into firms’ structures, managerial criteria, and key activities. These three indicators are strongly interrelated.

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Department of Management, University of Isfahan, Hezarjarib St., 81746-73441, Isfahan, Iran

Arash Shahin

Department of Industrial Management, Persian Gulf University, 7516913817, Bushehr, Iran

Hadi Balouei Jamkhaneh

COSYS-ESTAS, Université Gustave Eiffel, IFSTTAR, Univ Lille, 59650, Villeneuve d’Ascq, France

Reza Shahin

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Correspondence to Hadi Balouei Jamkhaneh .

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Shahin, A., Balouei Jamkhaneh, H., Shahin, R. (2022). The Role of E-procurement in Supply Chains. In: Kryvinska, N., Greguš, M. (eds) Developments in Information & Knowledge Management for Business Applications. Studies in Systems, Decision and Control, vol 420. Springer, Cham. https://doi.org/10.1007/978-3-030-95813-8_25

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THE ADOPTION OF E-PROCUREMENT IN TANZANIA PUBLIC PROCUREMENT: PROGRESS, CHALLENGES AND THE WAY FORWARD

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Leal, Pedro Manuel Mariano. "Evolution in public procurement and the impact of e-procurement platforms: a case study." Master's thesis, NSBE - UNL, 2010. http://hdl.handle.net/10362/10312.

ISLAM, MAHMUDUL, and TAN ZHU. "DRIVING FORCES AND HINDERING FACTORS OF E-PROCUREMENT ADOPTION FOR MRO PRODUCTS IN BANGLADESH AND CHINA." Thesis, Linnéuniversitetet, Ekonomihögskolan, ELNU, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-21241.

Mahdillou, Hossein, and Jawid Akbary. "E-procurement adoption, its benefits and costs." Thesis, Högskolan i Borås, Institutionen Ingenjörshögskolan, 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:hb:diva-18199.

Smart, Alan. "The role of e-procurement in purchasing management." Thesis, Cranfield University, 2010. http://dspace.lib.cranfield.ac.uk/handle/1826/5761.

LOPES, CELSO DOS SANTOS MATOSO. "E-PROCUREMENT CORPORATE PORTALS: AN ENERGY COMPANY APPROACH." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2012. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=21124@1.

Gihozo, Diane. "Adoption of e-procurement in Rwandan Public institutions." Thesis, Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO), 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-98992.

Jooste, Marius Visser. "A framework for the implementation of e-procurement." Diss., Pretoria : [s.n.], 2002. http://upetd.up.ac.za/thesis/available/etd-08222005-123331/.

Karahan, Turan Hamide. "A Web-based Public Procurement System." Master's thesis, METU, 2004. http://etd.lib.metu.edu.tr/upload/12605145/index.pdf.

Gozzi, Elcio Fagundes Marques. "Contrato de EPC (Engeneering, Procurement e Construction) e o padrão FIDIC." reponame:Repositório Institucional do FGV, 2016. http://hdl.handle.net/10438/17285.

Altayyar, Ahmed. "Investigating e-procurement barriers within six Saudi Arabian SMEs." Thesis, University of Bedfordshire, 2017. http://hdl.handle.net/10547/622479.

Li, Vera. "Ethical behaviours in e-commerce based construction procurement process." Thesis, Queensland University of Technology, 2006. https://eprints.qut.edu.au/16315/1/Vera_Li_Thesis.pdf.

Li, Vera. "Ethical behaviours in e-commerce based construction procurement process." Queensland University of Technology, 2006. http://eprints.qut.edu.au/16315/.

Al-Yahya, Moath. "Construction organisations' readiness for electronic tendering: Saudi Arabian experience." Thesis, Queensland University of Technology, 2017. https://eprints.qut.edu.au/112502/1/Moath%20Ahmed%20H_Al%20Yahya_Thesis.pdf.

Álvarez, Carranza Ricardo. "Digging into Dirty Laundry: e-Standardization of Legal Services Procurement." Thesis, KTH, Industriell ekonomi och organisation (Inst.), 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-38925.

Soares, Luís Miguel Martins. "O e-procurement como fator de inovação e apoio à decisão: o paradigma autárquico." Master's thesis, Universidade de Évora, 2015. http://hdl.handle.net/10174/15833.

Robaty, Shirzad Sara. "Using social media to inform supplier selection in new product introduction." Thesis, Brunel University, 2014. http://bura.brunel.ac.uk/handle/2438/8717.

Masullo, Riccardo. "L'implementazione delle piattaforme di E-Procurement: il caso FAAC Group." Master's thesis, Alma Mater Studiorum - Università di Bologna, 2016.

Canbolat, Mustafa Serdal. "Supplier selection in e-procurement using fuzzy analytic hierarchy process." Thesis, University of Ottawa (Canada), 2005. http://hdl.handle.net/10393/26862.

Smith, Dirk Johan. "The impact of e-procurement on Namakwa Sands / D.J. Smith." Thesis, Potchefstroom University for Christian Higher Education, 2002. http://hdl.handle.net/10394/1634.

Schnitzler, Michael, and Olof Österlund. "Evaluation of implementing e-Procurement in the Swedish construction industry." Thesis, Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Centre of Logistics and Supply Chain Management, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-27215.

Li, Xinyue. "A framework to assist SMEs in implementing e-procurement applications." Thesis, University of Liverpool, 2010. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.533979.

Bordignon, Gerson. "E-procurement associado a MRO: o caso Caixa Econômica Federal." reponame:Repositório Institucional do FGV, 2003. http://hdl.handle.net/10438/3769.

Napsah, Muhibuddin. "The Adoption of e-Procurement in the Indonesian Public Sector." Thesis, Curtin University, 2016. http://hdl.handle.net/20.500.11937/75265.

Fischer, Stefan. "Personalized query result presentation and offer composition for E-procurement applications." [S.l.] : [s.n.], 2004. http://deposit.ddb.de/cgi-bin/dokserv?idn=973118377.

Jönsson, Linus, Oscarsson Emma, David Skoglund, and Max Stafström. "Implementing an IBX e-procurement solution : Are there any success factors?" Thesis, Linnaeus University, Linnaeus School of Business and Economics, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-5886.

Title: Implementing an IBX e-procurement solution – are there any success factors?

Subject: FE02E bachelor thesis, logistics

Authors: Linus Jönsson, Emma Oscarsson, David Skoglund & Max Stafström

Tutor: Roger Stokkedal

Keywords: E-procurement, implementing, critical success factors, benefits, problems, MRO-products

Background: One of the major problems that organizations face today is how to bring home savings. E-procurement solutions can be a tool to reach efficiency and reduce costs within organization. One of the biggest spend issues companies wrestle with are indirect material, also defined as MRO products (maintenance, repair, operations).

Purpose: The thesis will examine why companies decide to implement an e-procurement solution and what their expectations are. The purpose of the research was to identify which the success factors are when implementing this type of solution. Eventual problems that may emerge during the implementation and benefits that the implementation might lead to, will also be presented.

Methodology: The thesis has a survey design which studies variables in an e-procurement implementation. The scientific perspective is positivistic and has a deductive approach. The sample contains customers to IBX which use the entire solution, from planning to follow-up. The data has been gathered through a post-questionnaire.

Result /Conclusion: When deciding to implement an e-procurement solution companies base this decision on a number of reasons. The most common reasons are to increase the internal efficiency and reduce the supplier base. There are also other encouraging reasons to the implementation which all concerns saving time and money. Once the decision has been made, expectations on the solution arise and companies expect the solution to bring benefits. Most common expectations are much alike the reasons concerning saving time and money on purchases of MRO-products. Besides the reasons and expectation companies must consider the critical success factors, both before, during and after the implementation. These factors will determine whether or not the implementation will be a success and they can be divided into factors that affect all companies and factors that just affect some. The key factors, affect all, are defining an e-procurement strategy, change management and training and education. Secondary factors will affect some companies, and depending on the situation organizations must take them into their perspective. These factors are i.e. well defined steering group and communication. If companies don´t consider the success factors problems may emerge, where change management is one of the most common problem. This is an organizationalproblem just like lack of information from external parts and lack in project management skills internally. Besides the organizational problems companies can also experience technical problems, which are directly associated to the solution that‟s implemented. Some of these problems are complex usability, complicated to communicate and integrate. By avoiding the problems companies can expect to see more benefits from the solution, the most experienced benefits are compliance savings, reduced supplier base and lowered administrative costs. These benefits mainly considers time saving and are all associated with the reasons to the implementation and expectations on the solutionResult /Conclusion: When deciding to implement an e-procurement solution companies base this decision on a number of reasons. The most common reasons are to increase the internal efficiency and reduce the supplier base. There are also other encouraging reasons to the implementation which all concerns saving time and money. Once the decision has been made, expectations on the solution arise and companies expect the solution to bring benefits. Most common expectations are much alike the reasons concerning saving time and money on purchases of MRO-products. Besides the reasons and expectation companies must consider the critical success factors, both before, during and after the implementation. These factors will determine whether or not the implementation will be a success and they can be divided into factors that affect all companies and factors that just affect some. The key factors, affect all, are defining an e-procurement strategy, change management and training and education. Secondary factors will affect some companies, and depending on the situation organizations must take them into their perspective. These factors are i.e. well defined steering group and communication. If companies don´t consider the success factors problems may emerge, where change management is one of the most common problem. This is an organizationalproblem just like lack of information from external parts and lack in project management skills internally. Besides the organizational problems companies can also experience technical problems, which are directly associated to the solution that‟s implemented. Some of these problems are complex usability, complicated to communicate and integrate. By avoiding the problems companies can expect to see more benefits from the solution, the most experienced benefits are compliance savings, reduced supplier base and lowered administrative costs. These benefits mainly considers time saving and are all associated with the reasons to the implementation and expectations on the solution.

Myataza, Nosiphendule Mlamli. "An assessment of e-procurement in the Eastern Cape provincial government." Thesis, University of Fort Hare, 2015. http://hdl.handle.net/10353/1601.

NEVES, LINCOLN WOLF DE ALMEIDA. "INTEGRATION OF THE STRATEGIC SOURCING PROCESS TO THE E-PROCUREMENT TOOLS." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2003. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=4310@1.

Okah, Joy Oghenewefe. "The impact of trust on e-procurement within the oil industry." Thesis, University of East London, 2009. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.532923.

Milheiro, Diana Filipa Gonçalves. "Implementação do e-procurement : estudo de caso da empresa Luz Saúde." Master's thesis, Instituto Superior de Economia e Gestão, 2015. http://hdl.handle.net/10400.5/10842.

Eadie, Robert W. J. "E-Procurement capability maturity model for analysing the E-readiness of UK construction organisations." Thesis, University of Ulster, 2009. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.515887.

Collignon, Stephane Eric. "Exploratory and Empirical Analysis of E-Marketplaces for Truck Transportation Services Procurement." Diss., Virginia Tech, 2016. http://hdl.handle.net/10919/72226.

Karlsson, Jonas, and Tobias Elofsson. "Effekter av e-procurement inom offentliga organisationer : En fallstudie av Växjö kommun." Thesis, Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO), 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-35699.

Cardoso, André Luís. "Oportunidades e barreiras para engajamento de fornecedores brasileiros de MRO na utilização de e-procurement." reponame:Repositório Institucional do FGV, 2018. http://hdl.handle.net/10438/24862.

Alsaffar, Eanas. "A method for an e-procurement adoption pattern in an emerging economy." Thesis, University of Reading, 2011. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.553145.

Marcondes, Carlos Henrique Tiezzi 1965. "E-procurement : non-production purchase : an industry analysis & an implementation plan." Thesis, Massachusetts Institute of Technology, 2000. http://hdl.handle.net/1721.1/9148.

Zhao, Yuxiao. "XML-based Frameworks for Internet Commerce and an Implementation of B2B e-procurement." Licentiate thesis, Linköping University, Linköping University, PELAB - Programming Environment Laboratory, 2001. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-5735.

It is not easy to apply XML in e-commerce development for achieving interoperability in heterogeneous environments. One of the reasons is a multitude of XML-based Frameworks for Internet Commerce (XFIC), or industrial standards. This thesis surveys 15 frameworks, i.e., ebXML, eCo Framework, UDDI, SOAP, BizTalk, cXML, ICE, Open Applications Group, RosettaNet, Wf-XML, OFX, VoiceXML, RDF, WSDL and xCBL.

This thesis provides three models to systematically understand how the 15 frameworks meet the requirements of e-commerce. A hierarchical model is presented to show the purpose and focus of various XFIC initiatives. A relationship model is given to show the cooperative and competitive relationships between XFIC. A chronological model is provided to look at the development of XFIC. In addition, the thesis offers guidelines for how to apply XFIC in an e-commerce development.

We have also implemented a B2B e-procurement system. That not only demonstrates the feasibility of opensource or freeware, but also validates the complementary roles of XML and Java: XML is for describing contents and Java is for automating XML documents (session handling). Auction-based dynamic pricing is also realized as a feature of interest. Moreover, the implementation shows the suitability of e-procurement for educational purposes in e-commerce development.

Stoll, Patrick. "Der Einsatz von E-Procurement in mittelgrossen Unternehmen : konzeptionelle Überlegungen und explorative Untersuchung /." Wiesbaden : Gabler, 2008. http://d-nb.info/987989790/04.

Tian, Shuo S. M. Massachusetts Institute of Technology. "Logistic regression for a better matching of buyers and suppliers in e-procurement." Thesis, Massachusetts Institute of Technology, 2010. http://hdl.handle.net/1721.1/61901.

Antunes, Ana Rita Araújo. "A implementação de sistemas de e-procurement : estudo de caso no banco ABC." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/20645.

Sokolinskaja, Agata. "Viešieji e. pirkimai ir jų teisinis reglamentavimas Lietuvoje." Master's thesis, Lithuanian Academic Libraries Network (LABT), 2006. http://vddb.library.lt/obj/LT-eLABa-0001:E.02~2006~D_20061219_164713-37206.

Štangl, Rastislav. "Procurement application solutions in cloud environment, evolution and trends." Master's thesis, Vysoká škola ekonomická v Praze, 2013. http://www.nusl.cz/ntk/nusl-199230.

Shimada, Tomoaki. "Potential benefits and emerging challenges of B2B e-procurement systems in a supply chain." online access from Digital Dissertation Consortium, 2005. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3195924.

Vilaverde, João Manuel Araújo Machado. "An interoperability API for E-Procurement and E-Tendering platforms Driving E-Procurement." Master's thesis, 2014. http://hdl.handle.net/1822/33426.

Lo, Kuo-Chun, and 羅國君. "Formation and Change of Procurement Strategy ─Case Study of Taiwan IBM’s e-Procurement." Thesis, 2003. http://ndltd.ncl.edu.tw/handle/22232387059567626706.

Ferreira, Mariana Miranda de Jesus Rodrigues. "O Procurement e a Seleção de Fornecedores : Desenvolvimento de um Modelo de Procurement." Master's thesis, 2020. http://hdl.handle.net/10316/94422.

Shih, Li-Ling, and 史麗伶. "A Study on the E-procurement in Government Agencies- E-Procurement System of Inter-Entity Supply Contracts." Thesis, 2011. http://ndltd.ncl.edu.tw/handle/92394500967643696232.

Chiu, Shih-jung, and 邱士榮. "A Case Study on E-Procurement Strategy." Thesis, 2007. http://ndltd.ncl.edu.tw/handle/8tdx74.

Cho, C. M., and 卓志銘. "Critical Factors of e-Procurement Implementation Model." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/87147501421242880144.

Fang, Wang Mei, and 汪玫芳. "Critical Success Factor of Implement e-Procurement." Thesis, 2013. http://ndltd.ncl.edu.tw/handle/59686925977306868883.

Chen, Hung-Che, and 陳弘哲. "An Exploratory Study of Factors Influencing e-Procurement." Thesis, 2004. http://ndltd.ncl.edu.tw/handle/03175441322565696024.