MIS Quarterly Executive


Electronic procurement (e-procurement) involves using online facilities to conduct some of the activities involved in procuring goods and services, especially on-line bidding. It has been increasingly implemented by firms to reduce procurement costs, compress negotiation cycle times, and enhance access to global markets. However, most procurement executives remain unsure about how to implement e-procurement effectively. Based on a field study of 26 firms with business operations in Asia, we suggest a three-stage model for implementing e-procurement: (1) assess e-procurement's match with your firm's purchasing practices, (2) determine your operational and strategic objectives, and (3) overcome the key barriers most likely to discourage buyers and suppliers. This paper lists specific decision criteria in each of the three stages to help IS executives, procurement managers, and market makers mitigate the risks of e-procurement and implement it with greater confidence and effectiveness.