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

Abstract

Many buying firms have adopted e-procurement systems, yet the impact of these applications is still being assessed by both academics and practitioners alike. This paper examines the use of e-procurement within four multinational firms, to establish the impact of these mechanisms on their approach to the supply market, using thematic parameters derived from the literature. The results indicate that these firms established a clear supply market strategy based on a segmentation model: e-procurement tools were used as tactical means to implement and extend that strategy towards the supply base. In addition, it was observed that tactics within defined segments are developing, as buying firms use e-procurement tools both to reduce supplier numbers and to leverage their volumes in price- competitive markets. Various propositions are offered on the key themes, summarising the findings in the paper and providing further indications for research.