eProcurement: A Study of the Concept from the Point the Point of View of the Users and System Suppliers

Abstract: Background: The market for eProcurement is expected to increase from from US$ 3,6 miljarder to US$ 1.375 billions under the period 1999-2003. Nevertheless, there is still a widespread unsecurity among companies surrounding eProcurement, partly due to that procurement for a long time has played a remote role in the companies, and partly since procurement is a far from a homogeneous function. Purpose: To examine how eProcurement is defined, what advantages eProcurement implies and how it affects the procurement strategies and the procurement processes of companies. Research method: The empiric work comes from interviews with persons in connection with procurement at four companies that today are using an eProcurement-system or are about to introduce one, and at two companies that delivers applications. Result: From the persons we have interviewed we conclude that there is a rather strong unanimity as how eProcurement is being defined, and which advantages it can imply. Furthermore, eProcurement should not be seen as a solution of a company's eventuall procurement problems, but as a tool to strengthen and refine its procurement strategies and a possibility for rationalizing the procurement processes of the company. In other words, you shall not just pave old paths.