E‐procurement: is the ugly duckling actually a swan down under?

Abstract

Much of the hype associated with the impact of electronic business is associated with the business to business (B2B) model. Analysts believe that enormous cost savings and efficiencies can be achieved through the utilisation of e‐procurement, a component of the B2B model. The role of procurement and the emerging use of large information systems to conduct e‐procurement is analysed and presented with the results of a survey of 38 major Australian organisations. The current direct and indirect procurement practices of the sample organisations will be analysed together with an analysis of the eprocurement drivers and barriers. The main results show that direct procurement is heavily dependant upon traditional practices whilst indirect procurement is more likely to use “e” practices. Small‐medium organisations are more nimble at adopting e‐procurement practices. Technical issues dominate e‐procurement barriers, with cost factors dominating e‐procurement drivers.