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The rapid development of Internet technology has made inter-organisation connectivity much easier and cheaper than ever before, hereby providing an opportunity for companies, both large and small, to realise the true value of the Internet. Despite the huge investment and complexity of implementing eprocurement, there is little empirical research to provide managerial guidelines for developing effective procurement strategies and for successfully implementing e-procurement. This paper attempts to fill this gap by reporting an Australian case study on the adoption of e-procurement. The findings offer detailed, varied and practical strategic insights into organisational redesign, critical factors, and challenges. The implications are also offered.