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E-procurement maturity in industry

This paper aims to examine the use and implementation of electronic procurement for indirect material in eight large global companies, and investigate what kinds of barriers exist towards electronic procurement. The empirical evidence comes from interviews with e-procurement experts and operatives in eight global firms. Results show that three out of eight companies are using e-procurement and four are planning to do so in the future. Barriers shown by the empirical material are lack of technological standard, different IT-maturity among suppliers, resistance among users to leaving old suppliers, lack of support from top management, differences in language, culture and legal systems. Other barriers found are getting suppliers to update and control the electronic product catalogues and to monitor them and getting the users in the organisation to use the system.