Investigating benefits and limitations of applying e-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 competition
capability in automotive industry in Iran. This research aims to investigate
to find out to exploring the degree of e-procurement usage and finding
benefits 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- Sapco
exclusive supplier of Iran khodro. 2- Saze Gostare Saipa exclusive supplier
of Saipa 3- Topco 4- Zamiad 5- Sanaye Khodro Sazi Kerman.
Eventually I could achieve to below finding and conclusion based on research
questions:
1. To what degree automakers are using e-procurement for obtaining parts or
components in Iran?
The conclusion of this research shows the e-procurement is using in most of
famous car manufacturing Company for providing of the parts from abroad and
in some cases from Iran. Although all process of the e-procurement cannot do
in Iran because of some lack in infrastructure which are needed such as
e-payment or e-tendering. The main problem for e-payment is Iran banks
sanction situation by Westerns countries.
2. What are the benefits of applying e-procurement in automotive B2B Company
in 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 is
suggested by the theory, it has rejected by most of them only Topco Company
accepted.
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- inadequate
technological infrastructure 2- Inadequate technological infrastructure of
partners 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 of
e-procurement is completely new subject still Companies did not touch enough
experience related to the case. Beside upper manager support case due to
universal attention of the B2B Companies mangers have enough enthusiasm for
supporting the e-procurement implementation.