Current Trends and Challenges in Electronic Procurement: An Empirical Study

Abstract

This paper presents results from a longitudinal study on the use of ICT for B2B‐related business processes in large Swiss companies. In an empirical survey, 68 questionnaires were personally collected from procurement heads and subsequently analysed. The study was initiated by industry partners who wanted to gain more detailed knowledge about the maturity of e‐procurement in the Swiss market. Based on an extensive literature review and previous empirical studies, we developed a research framework addressing strategic as well as operational issues. The findings show that reduction of purchase prices is the top priority when setting procurement goals. For 78.2% of the respondents IT makes an important contribution to successfully carrying out the procurement function. Nevertheless, these companies are striving for further optimization and improved process integration. Electronic exchange of invoices (e‐invoicing) is a current key topic for over 70% of the companies. Procurement heads sense a lack of supplier involvement, which makes the realization of balanced B2B solution scenarios difficult. The study shows that IT, without doubt, plays a significant role in everyday procurement, but that the expectations of IT are rarely completely fulfilled.

Keywords:

• empirical study
• survey
• SME
• e‐procurement
• B2B e‐commerce

Notes

1. The questionnaire is available from the authors on request.

2. Verordnung des Eidgenössischen Finanzdepartements über elektronisch übermittelte Daten und Informationen (ElDI‐V) vom 30. Januar 2002, possible translation: Ordinance of the Federal Finance Department on electronic transfer of data and information (EIDI‐V) dated 30 January 2002.