Critical Success Factors for the Implementation of Business-To- Business Electronic Procurement

Abstract

This article investigates the critical success factors of e-procurement—the purchase of goods and services for organizations, which usually represents one of the largest expense items in a firm's cost structure. Data was gathered using the survey method and a random sample drawn from the membership of the Institute for Supply Management and the Council of Logistics Management. Data was analyzed from 74 firms that implemented e-procurement. Factor analysis resulted in a four-factor solution: (1) factor one suggests the rationalization of the firm's management of its suppliers; (2) factor two calls for redesigning affected business processes and influencing end-user/employee procurement-related behaviors; (3) factor three refers to carefully orchestrating an e-procurement technology planning process with one's suppliers and using intelligence in designing the software and mining the data it produces; and (4) factor four relates to selecting an e-procurement solution and/or simultaneously participating in a number of electronic environments supporting e-procurement.