Investigating benefits and limitations of applyinge-procurement in B2B Automakers companies in Iran

Abstract: According to severe competition of big automakers in the world with Iran auto manufacturers based on free importing of foreign cars into Iran market, on the other hand well established of many managerial systems in well known foreign car brands, Iranian manufacturer should replace ancient with newest one. Moreover, jointing to the WTO which is another target of Iranian automakers makes this situation clear that we have to present new methods.E-procurement will be one of the solutions for improvement competitioncapability in automotive industry in Iran. This research aims to investigateto find out to exploring the degree of e-procurement usage and findingbenefits and limitations of applying in automotive companies in Iran. To this end a qualitative approach was used and multiple case studies were conducted.This research investigated 5 main automotive Iranian Companies: 1- Sapcoexclusive supplier of Iran khodro. 2- Saze Gostare Saipa exclusive supplierof Saipa 3- Topco 4- Zamiad 5- Sanaye Khodro Sazi Kerman.Eventually I could achieve to below finding and conclusion based on researchquestions:1. To what degree automakers are using e-procurement for obtaining parts orcomponents in Iran?The conclusion of this research shows the e-procurement is using in most offamous car manufacturing Company for providing of the parts from abroad andin some cases from Iran. Although all process of the e-procurement cannot doin Iran because of some lack in infrastructure which are needed such ase-payment or e-tendering. The main problem for e-payment is Iran bankssanction situation by Westerns countries. 2. What are the benefits of applying e-procurement in automotive B2B Companyin Iran? The conclusion of this research shows the benefits of applying e-procurement in main famous car manufacturing Companies in Iran are 1- shortened procurement cycle time which is accepted by the all these Companies. 2-Reduce transaction and administration costs. Based on e-solution for these companies making the paperless system will make this benefit for companies.3- improved visibility of the customer demand and supply chain. 4- Rapid decision making 5- precise decision making.Based on my research in case of reduced operating and inventory which issuggested by the theory, it has rejected by most of them only Topco Companyaccepted. 3. What are the limits of applying e-procurement in automotive B2B Company in Iran?The conclusion of this research shows the limits of applying e-procurement in main famous car manufacturing Companies in Iran are 1- inadequatetechnological infrastructure 2- Inadequate technological infrastructure ofpartners 3- lack of integration with Business partners and their co-operation 4- regulatory and legal controls Based on our research in case of lack of skilled personnel only Sanaye Khodrosazi Kerman accepted this limit the rest did not accept it. Another case is about implementation costs which are accepted by none of them. Also Company culture which is presented by the theory is accepted by Zamyad and Sanaye khodrosazi kerman.Moreover security is selected by two Companies such as Sapco and Sazeh Gostar Saipa. I think one the most important point is experience because ofe-procurement is completely new subject still Companies did not touch enoughexperience related to the case. Beside upper manager support case due touniversal attention of the B2B Companies mangers have enough enthusiasm forsupporting the e-procurement implementation.