A Study on some Aspects of E-Procurement in Indian Organizations

Abstract

Electronic Procurement (EP) is frequently defined as the sourcing of goods or services via. electronic means, usually through the internet. Use of IT into procurement can be termed as EP and involves electronic ordering, bidding and rendering via portals, extranets, private platforms, marketplaces, and/or EDI. It can also involve the use of purchasing cards, reverse auctions, and/or integrated automatic procurement systems to facilitate, the corporate buying process. EP offers number of advantages but its rate of adoption is very slow. This paper reports the findings of a survey carried out in 36 Indian organizations to ascertain the extent of adoption of EP and impact of IT on EP practices. Some of the important findings of the survey are; the main objective for adoption of EP are to enhance customer service and satisfaction, to produce highly reliable products, best product performance, to improve product quality, improve on time delivery, Government of India also promotes the adoption of EP for better transparency and to eliminate unethical practices, the extent of use of IT by organization’s key suppliers, competitors and customers is significant and security concerns through digital networks seem to be a greater threat. Paper concludes by discussing the major barriers in the adoption of EP along with the impact of EP on performance measures.