E-procurement adoption, its benefits and costs

Abstract: This thesis report aims at illustrating and describing how e-procurement can contribute in creating value and reducing overheads associated with the procurement process through adopting and implementing e-procurement systems and applications in the supply chain network of an organization. It is an obvious fact that e-procurement plays a vital role in managing the supply chain especially now that outsourcing has become very common in the business market environment around the world. The main purpose of our bachelor thesis work is to find out how e-procurement can contribute in creating value, reducing cost and gaining more profit out of the procurement process. Since this thesis report is meant to cover the available literature on procurement and e-procurement only limited areas of the supply chain management is presented.When it comes to methodologies, available literatures on procurement and e-procurement have been covered to extract the most plausible information and data related how e-procurement contributes in creating value and reducing costs and overheads in the supply chain management. First a framework of modern procurement processes and stages is given as a basis and then e-procurement is treated being the technologies and key factors in implementation of e-procurement.This thesis work tries to consolidate prevalent ideas as well as facts that have been tested by means of academic researches carried out by scholars of the field and interdisciplinary of industrial engineering.