Global Integrated Supply Chain Implementation: The Challenges of E-Procurement

Abstract

Supply chain functions must operate in an integrated manner in order to optimize performance. However, the dynamics of the organization and the market make this challenging. In particular, the procurement function is a crucial link between the sources of supply and the organization. With most organizations spending at least one-third of their overall budget to purchase goods and services, procurement holds significant business value. Emerging technologies, especially e-procurement, are promising to change the picture of traditional procurement processes. However, the implementation of e-procurement is facing significant reengineering and change management challenges. This study identifies four main challenges in e-procurement implementation: business process integration, technological issues, value creation, and change management. The major challenge among them is change management. Critically, leadership is one of the primary requirements to make the change successfully.