e-Procurement Drivers and Barriers

The trend towards globalisation and increased competitiveness across markets has meant that many businesses are looking at solutions to increase efficiency. Businesses have previously focussed on workforce levels and streamlined internal operations to achieve efficiencies. Increasingly businesses are now looking at the supply chain and more specifically procurement to provide additional efficiencies. Many companies are looking at e- Procurement to increase efficiencies and decrease the bottom line. E-Procurement is evolving as one of the shining lights in the evolving e-Business story and this paper will look at a research survey of Australian organisations to determine what is driving and hindering e-Procurement. A model of e-Procurement drivers and barriers is presented with an analysis of the views of 38 organisations. The main outcomes of the survey show that cost based factors are driving e-Procurement whilst technology issues are the main barriers to e- Procurement