PHD Thesis by Prakash Patel (119997392022) PDF

“A Study of E-Procurement Practices in Selected
Organizations in Gujarat”
A Thesis submitted to Gujarat Technological University
for the Award of
Doctor of Philosophy
in
Management
By
Prakashkumar Hasmukhbhai Patel
Enrollment No. 119997392022
Under supervision of
Dr. Satendra Kumar
GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD
May – 2017
“A Study of E-Procurement Practices in Selected
Organizations in Gujarat”
A Thesis submitted to Gujarat Technological University
for the Award of
Doctor of Philosophy
in
Management
By
Enrollment No. 119997392022
Under supervision of
Dr. Satendra Kumar

AHMEDABAD
May – 2017
© Prakashkumar Hasmukhbhai Patel
DECLARATION
I declare that the thesis entitled “A Study of E-Procurement Practices in Selected

Organizations in Gujarat” submitted by me for the degree of Doctor of Philosophy is the
record of research work carried out by me during the period from July 2011 to December
2016 under the supervision of Dr. Satendra Kumar and this has not formed the basis for
the award of any degree, diploma, associateship, fellowship, titles in this or any other
University or other institution of higher learning.
I further declare that the material obtained from other sources has been duly
acknowledged in the thesis. I shall be solely responsible for any plagiarism or other
irregularities, if noticed in the thesis.
Signature of the Research Scholar:.................................. Date:.......................
Name of Research Scholar: Prakashkumar Hasmukhbhai Patel
Place: Vadodara
i
CERTIFICATE
I certify that the work incorporated in the thesis “A Study of E-Procurement

Practices in Selected Organizations in Gujarat” submitted by Shri. Prakashkumar
Hasmukhbhai Patel was carried out by the candidate under my supervision/guidance.
To the best of my knowledge:
(i) The candidate has not submitted the same research work to any other institution for
any degree/diploma, Associateship, Fellowship or other similar titles
(ii) The thesis submitted is a record of original research work done by the Research
Scholar during the period of study under my supervision, and
(iii) The thesis represents independent research work on the part of the Research
Scholar.
Signature of Supervisor: ……………………………… Date: ………………
Name of Supervisor: Dr. Satendra Kumar
Place: Vadodara
ii
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Organizations in Gujarat” by Prakashkumar Hasmukhbhai Patel has been examined
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Place: Vadodara
Signature of Supervisor: ……………………………… Date: ………………
Place: Vadodara
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Thesis Approval Form
The viva-voce of the PhD Thesis submitted by Shri. Prakashkumar Hasmukhbhai Patel,
Enrollment No. 119997392022, entitled “A Study of E-Procurement Practices in
Selected Organizations in Gujarat” was conducted on …………………….…………
(day and date) at Gujarat Technological University.
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The performance of the candidate was satisfactory. We recommend that he/she be
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viii
ABSTRACT
Background: Electronic business and electronic procurement are rapidly gaining global
attraction. Business done through internet provides major cost-saving, enhances efficiency
and results in increased productivity. India faces major traditional and cultural barriers in
adapting E-Business. This is mostly due to traditional mentality of doing business which is
greatly based on personal trust, historical credits and greatly traditional business practices.
E-Procurement involves electronic data transmits to support Operational, Tactical and
Strategic Procurement.
Aim: Today many companies use E-Procurement as a strategic tool to compete with
others. The aim of the present research arises from the fact that a lot of businesses are still
relying on the traditional procurement and literature has provided limited result on e-
procurement practices in India. Hence, the purpose of this research is to study the E-
Procurement practices in selected industrial manufacturing organizations in Gujarat.
Manufacturing sector has a greater propensity to adopt technologies such as E-
Procurement1.
Research Design: In general, the research designs used by researchers may be exploratory,
descriptive and causal. This research is based on newness of the technology involved.
Search of the literature with reference to India has provided limited research. So, the
descriptive research adopted a quantitative methodology with a questionnaire instrument
being employed to investigate various E-Procurement practices within a sample of those
manufacturing firms which used E-Procurement. Data was collected from 72
Manufacturing Industrial Units from Gujarat which includes South, North, Central Gujarat
and Saurashtra region. Data was collected by Non-probability Convenience Sampling
technique. The sampling unit is an Executive and Managers concerned with E-Procurement
activities of an organization.
Data Analysis: Researcher has used Descriptive Statistics and Inferential Statistics.
Statistical tools used in the present research study pertaining to Descriptive Analysis are:
1
Paul O., et al, (2008), “The development of E-Procurement within the ICT manufacturing Industry in
Ireland”, Management Decision, Emerald Insight, Vol.46, Issue 3, pp: 481 -500. Retrieved from
www.emeraldinsight.com/0025-1747.htm.
ix
Frequency Distributions and Cross Tabulation and pertaining to the Inferential Analysis:
Exploratory Factor Analysis, Kruskal Wallis and Chi-square Analysis. The linkages
between E-Procurement practices and the types of Industry, Size of the company (which is
further classified based on Investment in plant machinery and based on the number of
employees), and Ownership of the company were examined through Kruskal Wallis Test,
and Chi-square Analysis. Throughout the analysis, acceptance and rejection of hypotheses
was done at the confidence interval of 95%. (5% of level of significance).
Conclusion: The study found the significant difference in procurement practices across
Industry, Size of the firm and Ownership of the firm. It also described the difficulties faced
in E-Procurement implementation, procurement objectives, reasons that have led to the
implementation of E-Procurement, Information Technology (IT) tools used and preferred
for Procurement, Information Technology (IT) solution used for operative order
processing, Number of supplier with whom business documents were exchanged by means
of EDI/Web EDI, Methods used to exchange electronic business documents with suppliers,
Extent of Information Technology (IT) tools used in E-Procurement, further up gradation
of IT to support the procurement process.
Keywords: Procurement, Information Technology (IT), E-Procurement, Enterprise

Resources Planning (ERP), SAP, EDI, Web-EDI
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Acknowledgement
Many people have helped me in my PhD journey; I wish to express my sincere gratitude to
those individuals who have supported me throughout my journey of the doctoral research.
First, my deep appreciation goes to my supervisor, guide and mentor Dr. Satendra
Kumar, Professor and Head, Research Centre, C K Shah Vijapurwala Institute of
Management, Vadodara, whose valuable advice has enabled me to complete my doctoral
research in time. His unwavering commitment to excellence is visible at all times itself is
constantly challenging me to think, that has resulted in a dissertation for which I can be
proud. He has always encouraged me to be a better researcher, writer and thinker.
The completion of the doctoral work could not have been possible without flawless support
and guidance of the DPC (Doctoral Progress Committee) Members: Dr. Rajesh Khajuria,
Director, C K Shah Vijapurwala Institute of Management, Vadodara, and Dr. Kiran Joshi,
Former Professor, M S Patel Institute of Management, M S University, Vadodara. I
heartily thank my foreign co supervisor Prof. Dr. Samo Bobek, Head of Department of e-
business, University of Maribor, Maribor, Slovenia, for his timely and constant insights.
I heartily thank to Dr. Nilay Yajnik, Professor & Chairman, Information Systems Area,
Narsee Monjee Institute of Management Studies, Mumbai, Dr.Yashwant Sadashiv Patil,
Associate Professor & Head, Centre for Information Technology, Vaikunth Mehta
National Institute of Co-operative Management, Pune, Dr. Dhaval Maheta and Dr.
Hitesh Parmar, Assistant Professor, Department of Business and Industrial Management,
VNSGU, Surat for their assistance and help, I also appreciate the work of all the
researchers whose work helped me to understand my field of research and contribute to it
in however small manner possible.
I express my gratitude to my PhD batch mates and peer; Ms. Rnajita Benarji, Mrs. Preeti
Singhal, Mrs. Savitha K and Mr. Sameer Rohadia, who motivated and helped me
during the PhD journey, I would like to thank all the Faculties of C K Shah Vijapurwala
Institute of Management, Vadodara; Dr. Kerav Pandya, Dr. Kunjal Sinha, and Admin
Staff; Mr. Hitesh Thakkar, Mr. Chetan Patel, Mr. Keval Patel, Mr. Amit Dave, Mrs.
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Anjali Bhadsavle, Ms. Nusrat Campwala, Ms. Reshma Mulye, and Students for their
help and support throughout this endeavour. My special thanks to our Director, Dr.
Rajesh Khajuria, who has always allowed me to make use of the institute resources.
I also acknowledge the entire team of Gujarat Technological University (GTU) Ph.D
Section for their assistance and Support. I am very grateful to the people who have
contributed either directly or indirectly in the research progress.
Lastly, journey of the doctoral research could not have reached to its destination without
the support of My Mom, Dad, Sister, Brother and my wife Komal. This thesis is
dedicated to them for their constant source of love, concern, support and strength. My In-
Laws have also added aid to me throughout this endeavour. I have to give a special
mention to the little angel of my life, my daughter - Tanishi whose unconditional love has
always been a motivation for me.
xii
Table of Content
CHAPTER 1: Introduction, Definition of Terms and Structure of Thesis

1.0 Brief description on the state of the art of the research topic 1
1.1 Definition of important terminologies 3
1.1.1 Procurement 3
1.1.2 Major function of Procurement 3
1.1.3 E-Procurement 4
1.1.4 The History 4
1.1.5 Procurement process / steps 6
1.1.6 E-Procurement process / steps 7
1.1.7 Forms of E-Procurement 8
1.1.8 E-Procurement tools and applications 9
1.1.9 Electronic Systems to support procurement 10
1.1.10 Internet to support procurement 10
1.2 Industry Classification 11
1.2.1 Micro, Small and Medium enterprise classification 12
1.2.2 Ownership patterns of MSMEs 13
1.3 Structure of the Thesis 14
CHAPTER 2 Review of Literature

2.0 Introduction 15
2.1 Concept of Procurement 16
2.1.1 Challenges faced by procurement managers 17
2.2 Information Technology 17
2.3 Concept of an E-Procurement 19
2.3.1 Public E-Procurement 20
2.4 The History/ Trends of E-Procurement 21
2.4.1 E-Procurement trends in Global marketplace 21
2.4.2 E-Procurement trends in Private sector 22
2.4.3 E-Procurement trends in Government sector 23
2.5 Procurement Procedure 23
2.6 Roadmap for E-Procurement implementation 25
xiii
2.7 Form / Types of E-Procurement 26
2.8 Technology requirements for participation in E-Procurement 26
2.9 Implementation of E-Procurement 27
2.9.1 Implementation of E-Procurement by Government agencies / solution 29
2.10 Benefits (Drivers) to implementation of E-Procurement 30
2.10.1 Key business value findings 33
2.11 Challenges and Risks (Barriers) to implementation of E-Procurement 36
2.11.1 Challenges of E-Procurement implementation in the Government sector 37
2.12 Critical Success Factors (CSFs) of adoption of E-Procurement 38
2.13 Factors that affect E-Procurement adoption 40
2.14 E-Procurement Architecture 43
2.15 E-Procurement System / E- Procurement methods 44
2.16 Integrated Procurement solutions 47
2.16.1 Impact of size of the firm on the adoption of E-Procurement application 51
2.17 E-Procurement Tool 51
2.18 Impact of E-Procurement on organizational performance 54
2.18.1 Impact of E-Procurement on organizational performance 54
2.18.2 Impact of E-Procurement on supply chain performance 56
2.18.3 Impact of E-Procurement on corruption practices 57
2.18.4 Impact of E-Procurement technologies on procurement practices and
procurement performance 58
2.19 Development of research model or conceptual model 59
2.19.1 To predict and understand an intention to use E-Procurement technology 59
2.19.2 When and How benchmarking applies to technology adoption 60
2.19.3 E-Procurement adoption behaviour by small- to medium-sized enterprises 60
2.20 Identifying best practices in E-Procurement 70
CHAPTER 3 Research Methodologies

3.0 Introduction 76
3.1 Definition of the Problem 76
3.2 Research Objectives 77
3.3 Research Questions 77
3.4 Research Hypothesis 78
3.5 Scope of the Work 79
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3.6 Research Design 79
3.7 Area of Study 80
3.8 Sample Design 80
3.8.1 Sample Unit 80
3.8.2 Sampling Method 80
3.8.3 Sample Size 81
3.9 Sources of data 81
3.10 Planning of data collection 82
3.11 Data collection instrument & scaling technique 82
3.12 Pilot Study 84
3.12.1 Reliability of the research instrument 84
3.13 Research Ethics 86
CHAPTER 4 Data Analysis and Major Findings

4.0 Introduction 87
4.1 Descriptive Statistics 89
4.1.1 Frequency Distribution 89
4.1.1.1 Classification of Companies (Industry) 89
4.1.1.2 Classification of Companies (Investment in plant machinery) 90
4.1.1.3 Classification of Companies (Number of Employees) 90
4.1.1.4 Classification of Companies (Ownership Form) 90
4.1.1.5 Importance of the Procurement objectives 91
4.1.1.6 Extent to which IT is used to carry out the procurement functions 92
4.1.1.7 Reasons that has led to the implementation of e-procurement 92
4.1.1.8 Information Technology (IT) Tools used for procurement 93
4.1.1.9 IT Solution used for operative order processing 94
4.1.1.10 IT Tools preferred to fulfil industrial procurement expectations 95
4.1.1.11 No. of Supplier with whom business document exchanged by means of
Electronic Data Interchange (EDI) / WEB EDI from last Six Months 96
4.1.1.12 Electronic documents exchanged with Suppliers more often 96
4.1.1.13 Methods used in the exchange of the electronic business documents 97
4.1.1.14 Difficulties faced in E-Procurement implementation 97
4.1.1.15 Who initiate and drives the up-gradation of IT for Procurement 99
4.1.1.16 Up-gradation of IT to support the strategic procurement process 99
xv
4.1.1.17 Up-gradation of IT to support the operative procurement process 100
4.1.2 Cross Tabulation 101
4.1.2.1 Types of industry and Extent to which IT used to carry out the procurement
functions successfully 101
4.1.2.2 Ownership of company and Extent to which IT used to carry out
procurement functions successfully 104
4.1.2.3 Size of the company (investment) and Extent to which IT used to carry out
4.1.2.4 Size of the company (employees) and Extent to which IT used to carry out
4.1.2.5 Types of industry and IT solutions used for operative order processing 108
4.1.2.6 Ownership of the firm and IT solutions used for operative order processing
111
4.1.2.7 Size of the company (investment) and IT solutions used for operative order
processing 112
4.1.2.8 Size of the company (employees) and IT solutions used for operative order
processing 114
4.1.2.9 Types of industry and Number of supplier with whom business document
exchanged by means of EDI / WEB EDI from last six months 115
4.1.2.10 Ownership of the firms and Number of supplier with whom business
document exchanged by means of EDI / WEB EDI from last six months 119
4.1.2.11 Size of the firms (investment) and Number of supplier with whom business
4.1.2.12 Size of the firms (employees) and Number of supplier with whom business
4.1.2.13 Types of industry and Electronic documents exchanged 124
4.1.2.14 Ownership of the firm and electronic documents exchanged 127
4.1.2.15 Sizes of the firm (investment) and Electronic documents exchanged 128
4.1.2.16 Size of the firms (employees) and Electronic documents exchanged 130
4.1.2.17 Types of industry and methods the electronic documents exchanged 131
4.1.2.18 Ownerships of the firm and Methods the electronic documents exchanged
134
4.1.2.19 Size of the company (investment) and Methods the electronic documents
exchanged 136
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4.1.2.20 Size of the company (employees) and Methods the electronic documents
exchanged 138
4.1.2.21 Types of industry and Initiative / drive for the up-gradation of it for
procurement 139
4.1.2.22 Ownerships of the firm and Initiative / drive for the up-gradation of it for
procurement 141
4.1.2.23 Sizes of the firm (investment) and Initiative / drive for the up-gradation of
it for procurement 143
4.1.2.24 Sizes of the firm (based on number of employees) and Initiative / drive for
the up-gradation of it for procurement 144
4.2 Inferential Statistics 145
4.2.1 Krushkal Wallis Test 145
4.2.1.1 Difficulties faced in e-procurement implementation across Industry 146
4.2.1.2 Difficulties faced in e-procurement implementation across Size of the firm
149
4.2.1.3 Procurement objectives across Industry 151
4.2.1.4 Procurement objectives (summated variables) across Size of the firm
(investment) 155
4.2.1.5 Procurement objectives across Size of the firm (investment) 157
4.2.1.6 Procurement objectives across Size of the firm (employees) 159
4.2.1.7 Procurement objectives across Ownership of the firm 161
4.2.1.8 Reasons for adopting e-procurement across Industry 164
4.2.1.9 Reasons for adopting e-procurement across the Size of firm (investment)
167
4.2.1.10 Reasons for adopting e-procurement across the Size of firm (investment)
170
4.2.1.11 Further up gradation of it to support the procurement process (summated
response) across the size of the firm 172
4.2.1.12 Further up gradation of it to support the procurement process across the
size of the firm (investment) 173
4.2.1.13 Further up-gradation of IT to support the procurement process across
Ownership of the firm 176
4.2.1.14 IT tools used for E-Procurement across Industry 179
4.2.1.15 IT tools used for E-Procurement across Size of the firm (Investment) 182
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4.2.1.16 IT tools used for E-Procurement across Size of the firm (Employees) 184
4.2.1.17 IT tools used for E-Procurement across Ownership of the firm 186
4.2.1.18 IT tools preferred for E-Procurement across Industry 188
4.2.1.19 IT tools preferred for E-Procurement across the Size of firm 192
4.2.1.20 IT tools preferred for E-Procurement across the Size of firm (Employees)
194
4.2.2 Factor Analysis 196
4.2.2.1 Difficulties faced in E-Procurement implementation 196
4.2.2.2 Reasons that led to the implementation of E-Procurement 200
4.2.3 Chi-Square Analysis 204
4.2.3.1 Size of the firm (employees) and IT solutions used for operative order
processing 204
4.2.3.2 Sizes of firm (employees) and Method used to exchange the electronic
business documents with suppliers 206
CHAPTER 5 Summary of Major Findings, Limitations and Scope for Future

Research
5.0 Introduction 209
5.1 Conclusions - Major Findings 209
5.2 Limitations of the Study 223
5.3 Scope for Future Research 224
List of Reference 225
List of Appendices 241

Appendix A: Questionnaire 241
Appendix B: List of Publication 248
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List of Abbreviation
B2B Business to Business

B2C Business to Consumer
B2G Business to Government
BU Business Unit
CGEC Consortium for Global Electronic Commerce
CIPS Chartered Institute of Procurement and Supply
CRM Customer Relation Management
CSF Critical Success Factors
ECM Electronic Catalogue Management
EDI Electronic Data Interchange
EFT Electronic Funds Transfer
EOF Electronic Order Fulfilment
EPQ E-Procurement Quality
EPS Electronic Procurement System
ERA Electronic Reverse Auctions
e-RFP Electronic Request for Proposal
ERP Enterprise Resource Planning
ESM Enterprise Spend Management
HRM Human Resources Management
ICT Information and Communication Technology
IT Information Technology
LTMA Land Transport Management Act
MRO Maintenance Repair & Operations
MRP Material Requirement Planning
NeGP National e-Governance Project
NZTA NZ Transport Agency
OECD Organisation for Economic Co-operation and Development
ORA Online Reverse Auction
ORM Operating resource management
PC Personal Computer
PEPPOL Pan-European Public Procurement On-Line
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PFMR Public Financial Reform Management
R&D Research and Development
RFI Request for Information
RFID Radio Frequency Identification
RFQ Request for Quotation
RFT Request for Tender
RICS Royal Institute of Chartered Surveyors
ROP Request for Proposal
RTP Requisition to Pay
SAP Systems, Applications, Products
SCM Supply Chain Management
SN Subjective Norm
SPSS Statistical Package for the Social Sciences
SRM Supplier Relationship Management
TAM Technology Acceptance Model
TCO Total Cost of Ownership
TPB Theory of Planned Behaviour
UN United Nations
VMS Vendor Management System
WAN Wide Area Network
WEB-EDI Web Enabled Electronic Data Interchange
WWW World Wide Web
XML Extensible Mark-up Language
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List of Figures
1. FIGURE 1.1: The historic context of E-Procurement 5

2. FIGURE 1.2: How the E-Procurement process works 8
3. FIGURE 1.3: Classification of Indian Industry 11
4. FIGURE 1.4: Schematic structure of the Thesis 14
5. FIGURE 2.1: Savings due to E-Procurement implementation 35
6. FIGURE 4.1: Cross Tabulation: types of Industry – Extent to which IT used to carry
out the Procurement functions successfully 103
7. FIGURE 4.2: Cross Tabulation: Ownership of the Company – Extent to which IT used
to carry out the Procurement functions successfully 105
8. FIGURE 4.3: Cross Tabulation: Size of the Company (Investment) – Extent to which
IT used to carry out Procurement functions 106
9. FIGURE 4.4: Cross Tabulation: Size of the Company (Employees) – Extent to which
IT used to carry out Procurement functions 108
10. FIGURE 4.5: Cross Tabulation: Types of Industry – No. of suppliers with whom
business document exchanged by means of EDI / WEN EDI from last six months 118
11. FIGURE 4.6: Cross Tabulation: Ownership of the firms – No. of suppliers with whom
business document exchanged by means of EDI / WEB EDI 120
12. FIGURE 4.7: Cross Tabulation: Size of the firms (Investment) –No. of suppliers with
whom business document exchanged by means Of EDI / WEB EDI 122
13. FIGURE 4.8: Cross Tabulation: Size of the firms (Employees) –No. of suppliers with
whom business document exchanged by means Of EDI / WEB EDI 124
14. FIGURE 4.9: Chi-Square Test: Size of the Company (employees) - IT solutions used
for operative order processing 206
15. FIGURE 4.10: Chi-Square Test: Size of the Company (employees) - Method used to
exchange the electronic business documents with suppliers 207
xxi
List of Tables
1. TABLE 1.1: Micro, Small and Medium enterprises as defined in India 12

2. TABLE 1.2: Micro, Small and Medium enterprises as defined in Europe 13
3. TABLE 2.1: Comparative study of major articles/ research papers/ thesis/ books
included in the chapter 61
4. TABLE 2.2: Best Practices in E-Procurement 71
5. TABLE 3.1: Sample Profile 81
6. TABLE 3.2: Reliability Test Result 85
7. TABLE 4.1: Achievements with Respect to Objectives 88
8. TABLE 4.2: Classification of Companies based on types of Industry 89
9. TABLE 4.3: Classification of Companies (based on Investment) 90
10. TABLE 4.4: Classification of Companies (based on Employees) 90
11. TABLE 4.5: Classification of Companies (based on Ownership form) 90
12. TABLE 4.6: Classification of importance of Procurement objectives 91
13. TABLE 4.7: Extent to which Information Technology (IT) used to carry out the
Procurement Functions successfully 92
14. TABLE 4.8: Reason that has led to implementation of E-Procurement 92
15. TABLE 4.9: Information Technology (IT) tools used for Procurement 93
16. TABLE 4.10: IT solution used for operative order processing 94
17. TABLE 4.11: Preferred IT tools to fulfil industrial procurement expectations 95
18. TABLE 4.12: No. of supplier with whom business document exchanged by means of
EDI / WEB EDI form last six Months 96
19. TABLE 4.13 : Eelectronic documents exchanged with suppliers more often 96
20. TABLE 4.14: Methods used to exchange electronic business documents with suppliers
97
21. TABLE 4.15: Difficulties faced in E-Procurement implementation 97
22. TABLE 4.16: Who initiate/drives the up-gradation of IT for procurement 99
23. TABLE 4.17: Further up-gradation of IT to support strategic procurement process 99
24. TABLE 4.18: Further up-gradation of IT to support the operative procurement process
100
25. TABLE 4.19 : Cross Tabulation: Industry – Extent to which IT used to carry out the
xxii
26. TABLE 4.20: Cross Tabulation: Ownership of the Company – Extent to which IT
used to carry out procurement functions successfully 104
27. TABLE 4.21: Cross Tabulation: Size of the Company (Investment) – Extent to which
IT used to carry out the procurement functions successfully 105
28. TABLE 4.22: Cross Tabulation: Size of the Company (Employees) – Extent to which
IT used to carry out the procurement functions successfully 107
29. TABLE 4.23: Cross Tabulation: Types of Industry –IT Solutions used for operative
order processing 108
30. TABLE 4.24: Cross Tabulation: Ownership of the Firm –IT Solutions used for
operative order processing 110
31. TABLE 4.25: Cross Tabulation: Size of the Company (Investment) - IT Solutions used
32. TABLE 4.26: Cross Tabulation: Size of the Company (Employees) –IT Solutions used
33. TABLE 4.27: Cross Tabulation: Types of Industry – No. of Suppliers with whom
business document exchanged by means of EDI / WEN EDI from last six months 115
34. TABLE 4.28: Cross Tabulation: Ownership of the Firms – No. of suppliers with
whom business document exchanged by means of EDI / WEB EDI 119
35. Table 4.29: Cross Tabulation: Size of the Firm (Investment) – No. of suppliers with
36. TABLE 4.30: Cross Tabulation: Size of the Firm (Employees) – No. of suppliers with
37. TABLE 4.31: Cross Tabulation: Types of Industry – Electronic documents exchanged
with suppliers more often 124
38. TABLE 4.32: Cross Tabulation: Ownership of the Firm – Electronic documents
exchanged with suppliers more often 127
39. TABLE 4.33: Cross Tabulation: Size of the Firms (Investment) – Electronic
documents exchanged with suppliers more often 128
40. TABLE 4.34: Cross Tabulation: Size of the Firms (Employees) – Electronic
documents exchanged with suppliers more often 130
41. TABLE 4.35: Cross Tabulation: Types of Industry – Methods of electronic business
documents exchanged with suppliers 131
42. TABLE 4.36: Cross Tabulation: Ownerships of the Firm – Methods of electronic
business documents exchanged with suppliers 134
xxiii
43. TABLE 4.37: Cross Tabulation: Size of the Company (Investment) – Methods the
electronic business documents exchanged with suppliers 136
44. TABLE 4.38: Cross Tabulation: Size of the Company (Employees) – Methods the
electronic business documents exchanged with suppliers 138
45. TABLE 4.39: Cross Tabulation: Industry and initiative / drive for the up gradation of
IT for procurement 139
46. TABLE 4.40: Cross Tabulation: Ownerships of the firm and initiative/ drive for the up
gradation of IT for procurement 141
47. TABLE 4.41: Cross Tabulation: Size of the firm (Investment) and initiative/ drive for
the up gradation of IT for procurement 143
48. TABLE 4.42: Cross Tabulation: Size of the firm (Employees) and the initiative/ drive
for the up gradation of IT for procurement 144
49. TABLE 4.43: Kruskal-Wallis Test (Statistics): Difficulties faced in E-Procurement
implementation – Types of Industry 146
50. TABLE 4.44: Kruskal-Wallis Test (Ranks): Difficulties faced in E-Procurement
implementation - Types Industry 147
51. TABLE 4.45: Kruskal-Wallis Test (Statistics): Difficulties faced in E-Procurement
implementation – Size of the Firm (Investment) 149
52. TABLE 4.46: Kruskal-Wallis Test (Ranks): Difficulties faced in E-Procurement
implementation – Size of the Firm (Investment) 150
53. TABLE 4.47: Kruskal-Wallis Test (Statistics): Procurement objectives – Types of
Industry 151
54. TABLE 4.48: Kruskal-Wallis Test (Ranks): Procurement objectives – Types of
Industry 152
55. TABLE 4.49: Kruskal-Wallis Test: Procurement objectives (Summated Variables) –
Size of the Firm (Investment) 155
56. TABLE 4.50: Kruskal-Wallis Test (Ranks): Procurement objectives (Summated
Variables) – Size of the Firm (Investment) 156
57. TABLE 4.51: Kruskal-Wallis Test (Statistics): Procurement objectives (Summated
Variables) – Size of the Firm (Investment) 156
58. TABLE 4.52: Kruskal-Wallis Test (Statistics): Procurement objectives – Size of the
Firm (Investment) 157
59. TABLE 4.53 Kruskal-Wallis Test (Ranks): Procurement objectives – Size of the Firm
(Investment) 157
xxiv
60. TABLE 4.54: Kruskal-Wallis Test (Statistics): Procurement objectives – Size of the
Firm (Employees) 159
61. TABLE 4.55: Kruskal-Wallis Test (Ranks): Procurement objectives – Size of the Firm
(Employees) 160
62. TABLE 4.56:Kruskal-Wallis Test (Statistics): Procurement objectives – Ownership of
the Firm 162
63. TABLE 4.57: Kruskal-Wallis Test (Ranks): Procurement objectives – Ownership of
the Firm 162
64. TABLE 4.58: Kruskal-Wallis Test (Statistics): Reasons for adopting E-Procurement –
Types of Industry 164
65. TABLE 4.59: Kruskal-Wallis Test (Ranks): Reasons for adopting E-Procurement –
66. TABLE 4.60 : Kruskal-Wallis Test (Statistics): Reasons for adopting E-Procurement –
68. TABLE 4.62: Kruskal-Wallis Test (Statistics): Reasons for adopting E-Procurement –
Size of the Firm (Employees) 170
Size of the Firm (Employees) 171
70. TABLE 4.64: Descriptive statistics of up-gradation of IT to support the procurement
process 172
71. TABLE 4.65: Kruskal-Wallis Test (Ranks): Up-gradation of IT to support the
procurement process – Size of the Firm (Investment) 173
72. TABLE 4.66: Kruskal-Wallis Test (Statics): Up- gradation of IT to support the
73. TABLE 4.67: Kruskal-Wallis Test (Statistics): Up-gradation of IT to support the
74. TABLE 4.68: Kruskal-Wallis Test (Ranks): Up-gradation of IT to support the
75. TABLE 4.69: Kruskal-Wallis Test (Statistics): Up-gradation o IT to support the
procurement process – Ownership of the Firm 176
76. TABLE 4.70: Kruskal-Wallis Test (Ranks): Up-gradation o IT to support the
procurement process – Ownership of the Firm 177
xxv
77. TABLE 4.71: Kruskal-Wallis Test (Statics): IT tools used for E-Procurement – Types
of Industry 179
78. TABLE 4.72: Kruskal-Wallis Test (Ranks): IT tools used for E-Procurement – Types
of Industry 179
79. TABLE 4.73: Kruskal-Wallis Test (Statistics): IT tools used for E-Procurement – Size
of the Firm (Investment) 182
80. TABLE 4.74: Kruskal-Wallis Test (Ranks): IT tools used for E-Procurement – Size of
the Firm (Investment) 183
81. TABLE 4.75: Kruskal-Wallis Test (Statics): IT tools used for E-Procurement – Size of
the Firm (Employees) 184
82. TABLE 4.76: Kruskal-Wallis Test (Ranks): IT tools used for E-Procurement – Size of
the Firm (Employees) 185
83. TABLE 4.77: Kruskal-Wallis Test (Statistics): IT tools used for E-Procurement –
Ownership of The Firm 186
84. TABLE 4.78: Kruskal-Wallis Test (Ranks): IT tools used for E-Procurement –
Ownership of The Firm 187
85. TABLE 4.79: Kruskal-Wallis Test (Statistics): IT tools preferred for E-Procurement –
86. TABLE 4.80: Kruskal-Wallis Test (Ranks): IT tools preferred for E-Procurement –
87. TABLE 4.81 : Kruskal-Wallis Test (Statistics): IT tools preferred for E-Procurement –
Size of Firm (Investment) 192
Size of Firm (Investment) 193
89. TABLE 4.83: Kruskal-Wallis Test (Statistics): IT tools preferred for E-Procurement –
Size of Firm (Employees) 194
Size of Firm (Employees) 195
91. TABLE 4.85: Factor Analysis (KMO & Bartlett‟s Test) - Difficulties faced in E-
Procurement implementation 197
92. TABLE 4.86: Factor Analysis (Communalities) - Difficulties faced in E-Procurement
implementation 197
93. TABLE 4.87: Factor Analysis (Variance) - Difficulties faced in E-Procurement
implementation 198
xxvi
94. TABLE 4.88: Factor Analysis (Rotated Component) - Difficulties faced in E-
Procurement implementation 199
95. TABLE 4.89: Factor Analysis (KMO And Bartlett's Test) - Reasons that led to the
implementation of E-Procurement 200
96. TABLE 4.90: Factor Analysis (Communalities) – Reasons that led to the
97. TABLE 4.91: Factor Analysis (Variance) - Reasons that led to the implementation of
E-Procurement 201
98. TABLE 4.92: Factor Analysis (Rotated Component) - Reasons that led to the
99. TABLE 4.93: Cross Tabulation: Size of the Company (Employees) - IT solutions used
100.TABLE 4.94: Chi-Square Test: Size of the Company (Employees) - IT solutions used
101.TABLE 4.95: Cross Tabulation: Size of the Company (Employees) - Method used to
102.TABLE 4.96: Chi-Square Tests: Size of the Company (Employees) - Method used to
xxvii
Terminology
Procurement terms
Agency2: Ministry of Government, Department etc

Offer: Tender, Proposal, Bid, and Submission etc.
RFx1: A generic term use for RFQ, EOI, ROI, RFP or RFT
Supplier1: Vendor, Seller, Contractor, Potential Supplier etc.
Tender1: A generic term use to describe making an approach to market („Going out to
tender‟)
Classification of goods
Direct goods2: Material goods which flow directly into the production processes of the
company (raw materials, partially-/ finished products, merchandise, etc.).
Indirect goods2: Material goods which are used to carry out the work processes of the
company (working materials, office supplies, tools, products used for maintenance, etc.).
Services2: External services required by the company in order to carry out work processes
(consulting, advertising, maintenance, travel services, temporary work, etc)
Investment goods2: Capital goods which the company needs in order to carry out work
processes.
Information technology terms
P-cards1: P-card is a form of company charge card, similar to a credit card. The card is
preloaded for each user with financial limits and specific suppliers in accordance with the
agencies procurement policy. P-cards streamline high volume, low cost transactions,
reduce administration and provide centralised spend data.
Business Software3: Umbrella term for all kinds of software use in business. It includes
ERP systems as well as E-Business software.
2
“Mastering Procurement”, A structured approach to strategic procurement, A guide for government
agencies, March 2011, from http://www.procurement.govt.nz/procurement/pdf
library/agencies/GUIDEMasteringProcurement.pdf dated 01.01.2014
xxviii
E-Business2: Support of relationships and processes of a company with its business
partners, customers and employees by electronic means.
E-Procurement2: Support of a company‟s relationships and processes with its suppliers by
electronic means.
Electronic Data Interchange (EDI) 2: Completely automatic exchange of structured
information between the IT systems of two different institutions.
Information technology (IT) 2: All hardware, software and networks used in the company.
Radio Frequency Identification (RFID) 2: A radio identification system that reads and
saves data using a transponder without physical or visual contact. The transponder can be
attached to objects which can be identified by the data saved on them.
Supplier Relationship Management (SRM) 2: Concept for comprehensive support of
relationships and processes with suppliers.
Supply Chain Management (SCM) 2: Integrated management of the complete value chain
from purchasing via processing, selling, disposal to recycling.
WebEDI2: Web Electronic Data Interchange: Procedure to receive or send structured
messages via a web based interface (browser) to connect business partners who have no
EDI infrastructure.
Enterprise Resources Planning (ERP) systems: ERP systems are management
information systems that integrate and automate many of the business practices associated
with the operations of a company or organization. ERP systems typically handle the
manufacturing, logistics and distribution, inventory, shipping, invoicing, and accounting
for a company or organization. ERPs help in the control of many business activities, like
sales, delivery, billing, production, procurement, inventory management, and human
resources management.
Electronic mail (e-mail): Email is an Internet based application through which electronic
messages are exchanged between people.
Extensible Mark-up Language (XML): XML is used to allow for the easy interchange of
documents on the World Wide Web.
World Wide Web (WWW): The WWW is a major service on the Internet. The World Wide
Web is made up of "Web servers" that store and disseminate "Web pages," which are
3
Tanner, C., Wolfle, R., and Quade, M. (2006), “The role of information technology in procurement in the
Top 200 companies in Switzerland”, University of Applied Sciences North-western Switzerland – FHNW
dated 01.01.2014 from http://www.fhnw.ch/wirtschaft/iwi/kompetenzschwerpunkte/e-
business/projekte/dateien/fhnw-report-it-in-procurement-2006
xxix
"rich" documents that contain text, graphics, animations and videos to anyone with an
Internet connection.
E-Procurement Tool Characteristics
Buying / RTP Application (Buy Side E-Procurement)4 : An application hosted by the

buying firm to allow users to search for their Products, Place and Track Orders Receive
and Pay for Purchases.
Supplier Catalogues Sites (Sell Side E-Procurement) 3: Website hosted by an Individual
firm which displays its Product range in an Electronic catalogues. It‟s allows customers to
Order Online, Usually Using Point and click system, Linked to Shopping Basket, Check
Out etc.
Electronic Marketplaces (Many to Many E-Procurement) 3: It is a Web portals offer
which offers an online store for buyers and suppliers to conduct transactions.
Reverse Auctions (Buyer Controlled Online Tenders)3: Online, real time bidding events
where buyers offer a contract to specified suppliers, who make reducing bids in order to
gain the business. The winner in principle is the lowest bidder, although a range of criteria
may be used to award the contract. Terms and conditions for the event are specified by the
buying firm.
Electronic Sourcing: It supports the specification phase of the procurement. It can be used
to prequalify suppliers. It also identifies suppliers that can be used in the selection phase.
Electronic Tendering: It supports the selection stage and acts as a communication
platform between the procuring firm and suppliers.
Electronic Auctioning: It supports the contract stage. It can facilitate the closing of a deal
with suppliers if they agree with price. It operates with an upward or down ward price
mechanism. Upward mechanism for selling organization and downward price mechanism
for the buying organization.
Electronic Ordering: It is the process of creating and approving procurement requisitions,
placing orders, receiving goods and service ordered.
4
Smart, A., (2009), “The Role of E-Procurement in Purchasing Management”, School of Management,
Cranfield university, International Journal of Logistics: Research and Applications, (PhD Thesis) from
https://dspace.lib.cranfield.ac.uk/bitstream/1826/5761/1/Alan_Smart_Thesis_2010.pdf
xxx
Electronic-RFX (Buyer Analysis Support) 3: A suite of applications which support buyer
analysis of supply markets and suppliers. Includes search tools, supplier rating and scoring
systems, bid analysis tools, evaluation techniques.
xxxi
List of Appendices
Appendix A: Questionnaire
Appendix B: List of Publication
xxxii
Introduction, Definition of Terms and
Structure of Thesis
CHAPTER 1

Structure of Thesis
1.0 Brief Description on the State of the Art of the Research Topic
Procurement is the process of acquiring, buying goods, services or works from an external
source, often via a tendering or bid process 5 .The procurement management process
involves managing the ordering, receipt, review and approval of items from suppliers.
Procurement activities are divided in to two different categories direct and indirect based
on the consumption purpose. Direct Procurements affects the production process of
manufacturing firms. It encompasses all items that are part of finished products, such as
raw materials, components and parts. In contrast, indirect procurement activities concern
operating resources that a company purchases to enable its operations. It comprises of a
vast variety of goods and services, ranging from standardized low value items like office
supplies and machine lubricants to complex and costly products and services.
Traditionally, procurement was paper- and conversation-based, usually with procurement
officers interacting with long-time partners or well-known suppliers and purchasing at
fixed prices. Key challenges the procurement managers are facing in the increasingly
competitive business world are mentioned in the study of Kalakota, R & Robinson, M.
(2001)6 . These Five challenges are: (1) Reducing order processing cost and cycle times (2)
Providing enterprise-wide access to corporate procurement capabilities (3) Empowering
desktop requisitioning through employee self-service (4) Achieving procurement software
integration with company‟s back office systems (5) Elevating the procurement function to
a position of strategic importance within the organization.
5
“Procurement”, last retrieved dated 22.03.2016 from https://en.wikipedia.org/wiki/Procurement
6
Kalakota, R & Robinson, M. (2001), “E-business 2.0: Roadmap for success (2nd Edition)”. USA Addison-
Wesley, ISBN: 978-0-201-60480-1, last retrieved on 21.03.2013 from
http://dinus.ac.id/repository/docs/ajar/e-business_roadmap_for_success_full.pdf
1
Structure of Thesis
The Internet has brought about a lot of changes in business, economics, information and
entertainment. Also transfer of information has no geographical and time barrier. Virtually
all the manufacturers, suppliers, distributors, customers all across the world are now
connected to each other through World Wide Web (WWW). Activities and transactions
related to buying, selling, etc. can now be brought under the realm of internet. The pressure
on each business enterprise now is to plan transformation to e-Commerce paradigm. In the
Internet based system, not only transparency can be ensured but everything is also on
record 7 . In recent years, this has changed somewhat to become a strategic function.
Procurement officers seek suppliers that fit with a company's overall strategy. According to
Croom, S & Brandon-Jones, A., (2004)8 E-Procurement refers to the use of Internet based
(integrated) information and communication technologies (ICTs) to carry out individual or
all stages of the procurement process including search, sourcing, negotiation, ordering,
receipt, and post-purchase review. E-Procurement involves moving the procurement
process online to cut out steps and save money. E-Procurement involves electronic data
transfers to support operational, tactical and strategic procurement. According to de Boer
L. et al., (2002) 9 , Aberdeen Group Inc. (2001), 10 E-Procurement advantages are
significant bottom-line benefits, including cost reduction, process efficiencies, spending
controls and compliance. E-Procurement is presently the one of the most important and
discussed topic in Supply chain management, which has changed the way purchasing is
done. It creates private, web based procurement markets that automate communication,
transactions, and Collaboration between the members of supply chain.
Hence, the current study focuses on the E-Procurement practices in selected

industrial manufacturing units located in Gujarat.
7
“Transparency in public dealing through e-ERA”, last retrieved on 15.03.2013 from
http://www.iimm.org/ed/index.php?option=com_content&view=article&id=157&Itemid=107
8
Croom, S. & Brandon-Jones, A (2005), “Key issues in E-Procurement: Procurement implementation and
operation in the public sector”, journal of public procurement, volume 5, issue 3, 367-387 from
http://ippa.org/jopp/download/vol5/issue-3/SympAr3_CroomJones.pdf
9
de Boer L., Harink J., Heijboer G., (2002), “A review of methods supporting supplier selection”, European
Journal of Purchasing and Supply Management 7 (2), pp 75-89
10
Aberdeen Group Inc. (2001), “Best Practices in E-Procurement: The Abridged Report”, Aberdeen Group
Boston, Massachusetts, last retrieved dated 05.06.2013from http://www.cosmo-one.gr/educommerce/wp-
content/img/en2_1.pdf
2
Structure of Thesis
1.1 Definition of Important Terminologies
1.1.1 Definition of Procurement
Procurement refers to all activities involved in obtaining items from a suppliers e.g.,
purchasing, transporting and warehousing the items. Procurement is the important element
of Business operation which involves commerce between two or more businesses.
According to Nevalainen, A., (2001) 11 from the strategic perspective, the procurement
include the entire operations pertaining to requisitioning, transportation, warehousing, and
in bound receiving process. The main aim of procurement is process efficiency (Aldin et
al. 2004)12.
1.1.2 Major Function of Procurement
According to study of Aberdeen, Edie et al. (2007)13 Procurement activities can be divided
into three primary categories
 Direct Procurement: is the purchase of high volume materials and /or services that
directly facilitate the production of end products. According to study of Aberdeen,
Edie et al. (2007)7, direct procurement involves the organization, planning and
management of Procurement / Supply chain activities associated with acquiring the
raw materials, parts and assemblies necessary to produce finished products. As per the
research done by Neef, D. (2001) 14 , direct procurement involves fewer purchasing
transactions (20 per cent to 40 percent in manufacturing firm) but these are of higher
values and account for almost 60 percent of total procurement expenditure of the firm.
 Indirect Procurement: is the purchase of the support materials and / or services
required to enable the production of end products. According to study of Aberdeen,
11
Nenvalainen, A. (2001), “The e-business Dictionary”, Rockbend Books, Alaska.
12
Aldin et al. (2004), “ Business development with electronic commerce: Refinement and repositioning”, last
retrieved dated 21.05.2013 from
https://www.researchgate.net/publication/235272281_Business_development_with_electronic_commerce_Re
finement_and_repositioning dated 21.05.2013
13
Eadie, Robert, Perera, Srinath, Heaney, George and Carlisle, Jim (2007), “Drivers and Barriers to Public
Sector E-Procurement within Northern Ireland‟s Construction Industry. Journal of Information Technology
in Construction, Vol. 12. pp. 103-120. ISSN 1874-4753 from http://nrl.northumbria.ac.uk/6607/1/e-
proc_paper-2007_6.content.07965.pdf
14
Neef, D. (2001), E-Procurement from Strategy to Implement, Financial times Prentice hall Harlow, One
Lake Street, Upper Saddle River, NJ 07458, ISBN 0-13-091411-8, United State of America from
https://books.google.co.in/books/about/E_procurement.html?id=UDaxAcoX1JQC&printsec=frontcover&sou
rce=kp_read_button&redir_esc=y#v=onepage&q&f=false
3
Structure of Thesis
Edie et al. (2007) 15 , indirect procurement involves the selection, purchase, and
management of a wide range of nonproduction goods and services such as basic office
supplies to complex business services, such as printing, advertising, and temporary
labour. Support Materials are also categorised as the Operating resource management
(ORM) and Maintenance, Repair and Operations (MRO). According to Bartezzaghi,
E. and Ronchi, S. (2004) 16 , MRO purchases are low volume and high frequency
items.
 Sourcing: includes the Identification, evaluation and configuration of products,
services and suppliers for both direct and indirect procurement.
1.1.3 E-Procurement
According to Croom, S. & Brandon-Jones, A (2004)17 E-Procurement refers to the use of

Internet based (integrated) information and communication technologies (ICTs) to carry
out individual or all stages of the procurement process including search, sourcing,
negotiation, ordering, receipt, and post-purchase review. E-Procurement is the common
term applied to use of integrated database systems and wide area network (WAN) in part
or all of the purchase process. Chopra et al. (2001)18 stated that E-Procurement is Business
to Business purchasing practices that utilised electronic commerce (e-commerce) to
identify potential sources of supply, to purchase goods and services, to transfer payment
and to interact with suppliers. In general E-Procurement is electronic data transfer to
support operational, tactical and strategic procurement.
1.1.4 The History
From the year 1960s to mid 1990s, E-Procurement mainly took the form of Electronic Data
Interchange (EDI). At the present times, e- procurement is supported by Internet and
15
Aberdeen Group Inc. (2007), “E-Procurement: Trials and Triumphs”, last retrieved dated 05.06.2013 from
http://www.enporion.com/media/whitepapers/eprocurement _trials_and_triumphs.pdf
16
Bartezzaghi, E. and Ronchi, S. (2004), “A portfolio approach in the e-purchasing of Materials”, Journal of
Purchasing and Supply Management, 10 (3) pp. 117-26.
17
18
Chopra, S., Dougan, D and Taylor, G (2001), “B2B e-Commerce Opportunity”, Supply chain Review, 5
(3), pp. 50-62.
4
Structure of Thesis
Communication Technologies; therefore, it is become wide-spread. The historic context is
demonstrated in Figure 1.119.
(Source: UN Procurement Practitioner‟s Handbook, https://www.ungm.org/Areas/Public/pph/ch04s02.html )
FIGURE 1.1: The Historic Context of E-Procurement
E-Procurement began in the 1980s, with the development of electronic data interchange
(EDI). EDI allowed customers and suppliers to send and receive orders (and invoices as
well) using call-forwarding networks. In the 1990s, technology improved and software
companies began to develop electronic catalogues, specifically for the vendor‟s use and,
E-Procurement software has become a mixture of the two: a platform for sending and
receiving orders and various catalogues. Marketplaces have also proved to be a popular
addition to E-Procurement software. According to Chartered Institute of Procurement and
Supply (CIPS) the definition of Marketplace is a virtual marketplace for suppliers,
distributors, agents and customers20.
Chopra et al. (2001)18 mentioned the initial attempts to automate the buyer‟s side
procurement process by using electronic procurement system (EPS), Workflow system and
links with suppliers by using Electronic Data Interchange (EDI). These attempts are
19
UN Procurement Practitioner‟s Handbook, last retrieved dated 19.10.2014 from
https://www.ungm.org/Areas/Public/pph/ch04s02.html
20
Dr. J. Thirumaran (2015), “E Procurement - Challenges and Opportunities”, International Journal of
Advance Research and Innovative Ideas in Education, Vol-1, Issue-4.
5
Structure of Thesis
referred as first generation of E-Procurement which includes online entry, authorisation
and order placing through data entry forms, e-mails and scanned documents.
1.1.5 Procurement Process / Steps
Croom, S., R & Brandon-Jones, A., (2005)21 stated the followings procurement steps
 Identification of Need: It is an internal step of the company; in which company
identifies the needs by establishing a short term strategy (three to five years)
followed by defining the technical direction and requirement.
 Supplier Identification: Once the need is identified, then it needs to find who
provide the needed product or service.
 Supplier Communication: Once the suitable suppliers have been identified, then
the Request for Quotation (RFQ), Request for Proposal (ROP), Request for
Information (RFI) or Request for Tender (RFT) may be advertised or direct contact
made with suppliers.
 Negotiation: In this phase, the price, availability, customization possibility,

Delivery schedule etc., are negotiated with the supplier.
 Supplier Liaison: In this phase, the company evaluates the performance of the
product and or service of suppliers. Supplier scorecard is used for such purpose.
When the product and or service needs to be re-ordered, the company determines
whether to consider other supplier or continue with same supplier based on the
performance of supplier.
 Logistic Management: It includes Supplier preparation, expediting, delivery and

payment based on the contract term for Purchase. It also includes Installation and
training in some case as per the Product or Service.
 Additional Step - Tender Notification: Some companies use notification service

to raise competition for the chosen opportunity. This service can be direct form the
e-tendering software or from an external notification company.
21
6
Structure of Thesis
1.1.6 E-Procurement process / Steps
According to Handfiel, R., (2003)22 the basic procurement cycle consists of up to nine
steps, depending on the complexity of the buying and organizational policies.
 Requisition: A buyer recognizes needs and places a request for required goods or
services.
 Authorization: Each requirement is verified by approval agent. The approvers

verify that the goods and services are required or not.
 Purchase Order: Once the requisition is approved by the approver, a purchase

order is created and automatically delivered to the suppliers.
 Receipt of Goods: Once goods are received, the buyer issues or confirms a receipt
of such goods to the supplier.
 Invoice: After the preparation of shipment, an invoice is created.
 Reconciliation: After the goods received, the invoice needs to be reconciled to the
purchase order and goods receipt before payment is made to supplier.
 Payment: Once the goods received and invoice reconciled, payment is scheduled
through appropriate payment methods such as P-Card, Electronic fund transfer,
Cheque etc.
 Reclamation of Taxes: Supplier often includes taxes as a charge in their invoice,

so that the buyer may reclaim it if buyer is eligible to retain it.
 Analysis: After the number of procurement cycle completed, it is important to

analyse the efficiency and accuracy of the procurement process.
22
Handfiel, R. (2003), “ E-Procurement and the purchasing process”, The SCRC Articles Library, last
retrieved from 21.7.2013 from https://scm.ncsu.edu/scm-articles/article/e-procurement-and-the-purchasing-
process
7
Structure of Thesis
Haffar, N. & Wassim, M.23 explained the E-Procurement process as displayed in Figure
1.2.
How the e-procurement process works...
e-procurement enables distributed but controlled purchasing. It automates the

process from requisition to payment - to streamline operations, shorten cycle
times and reduce costs
End User Suppliers
• Select approved goods • Manage content

• Check prices • Maintain accuracy
• Check availability
Catalogues
• Submit requisitions • Negotiated relationships
• Buyer specific content
Purchasing Dept.
• Approve requisitions
• Place orders
• Manage consolidation
• Analyse purchasing data
(Source: Haffar, N. & Wassim, M., “E-Procurement Technology”, Dubai Municipality, price water house
coopers)
FIGURE 1.2: How the E-Procurement process works
1.1.7 Forms of E-Procurement
In general, Traditional Procurement process starts with requirement definition, sourcing,

solicitation, evaluation, contracting and contract management. In the Internet age, this
system is replaced by e-sourcing, e-tendering, e-reverse auction, e-ordering and web based
ERP. Followings are the various from of electronic procurement24.
 E-sourcing: It supports the specification phase of the procurement. It can be used

to prequalify suppliers. It also identifies suppliers that can be used in the selection
phase.
 E-tendering: It supports the selection stage and acts as a communication platform

between the procuring firm and suppliers. It includes analysis and assessment
activities but it does not support closing the deal with suppliers. In short it
facilitates a large part of the tactical procurement process.
23
Haffar, N. & Wassim, M., “E-Procurement Technology”, Dubai Municipality, price water house coopers
last retrieved dated 21.02.2014 from https://www.dm.gov.ae/wps/wcm/connect/.../E_procurement.ppt?
24
8
Structure of Thesis
 E-auctioning: It supports the contract stage. It can facilitate the closing of a deal
with suppliers if they agree with price. It operates with an upward or down ward
price mechanism. Upward mechanism for selling organization and downward price
mechanism for the buying organization.
According to Smeltzer. L. R. & Carr, A., (2002) 25 auction can be direct and
reverse. Direct auction occurs when there is one seller and many buyers, which
increases the price. Reverse auction occurs when there is one buyer and many
sellers, which reduces the price.
 E-ordering and web based Enterprise Resources Planning (ERP): It is the

process of creating and approving procurement requisitions, placing orders,
receiving goods and services ordered.
 E-ordering is generally used for indirect goods and services, for ad-hoc
ordering and can be used by all employees of a firm.
 Web based ERP is generally used for direct goods and services, for planned
ordering and used by the procurement department of a firm.
 E-informing: is not directly associated with a stage in the procurement process. It

is the process of gathering and distributing procurement information both from and
to internal and external parties using Internet technology.
1.1.8 E-Procurement Tools and Applications
Some E-Procurement tools and applications include26:
 Electronic System to support traditional Procurement (Manual Procurement)

 Electronic Data Interchange (EDI)
 Enterprise Resources Planning (ERP) System
 Internet to support traditional Procurement (Manual Procurement)
 Electronic mail (e-mail)
 Web enabled Electronic Data Interchange (WEB - EDI)
 Extensible Mark-up Language (XML)
 World Wide Web (WWW)
25
Smeltzer. L. R. and Carr, A. (2002), “Reverse Auctioning in Industrial Marketing and Buying, Business
Horizons, 45(2), pp. 47-52.
26
9
Structure of Thesis
 Internet tools and Platforms that replace traditional Procurement (Manual
Procurement)
1.1.9 Electronic Systems to Support Procurement
 Personal Computer (PC)

 Electronic Data Interchange (EDI): is an application by which electronics data/
messages can be exchanged between computer programs of two different
organizations. Some features of EDI include:
 Data/Messages are exchanged in groups, which are known as batches.
 Data/Messages can automatically be sent, transmitted and stored between
computers without re-typing or keying data.
 It (EDI) should be implemented by each pair of organizations, who wish to
use it.
 It (EDI) is mainly used in exchange and is concerned with such matters as
orders, confirmation, transport information and invoicing.
 It (EDI) runs on closed network (value added networks) unlike open
network like the Internet.
 Enterprise Resources Planning (ERP) Systems: are Management Information
systems that integrate and automate all functional area of the business operation of
the firm. It (ERP system) mainly handles the manufacturing, logistics and
distribution, inventory, shipping, invoicing and accounting for a firm. It also
controls many business activities such as sales, delivery, billing, production,
procurement, inventory management and resources management.
1.1.10 Internet to Support Procurement
There are various types of internet based applications that serve different purposes. Some
well-known applications that use the internet are described below27:
 Electronic mail (e-mail): Email is an Internet based application through which

electronic messages are exchanged between people.
 Web enabled Electronic Data Interchange (EDI): is like traditional EDI but run
on the Internet; also known as EDI-INT.
27
10
Structure of Thesis
 Extensible Mark-up Language (XML): XML is used to allow for the easy
interchange of documents on the World Wide Web.
 World Wide Web (WWW): is a major service on the Internet. The World Wide
Web is made up of "Web servers" that store and disseminate "Web pages," which
are "rich" documents that contain text, graphics, animations and videos to anyone
with an Internet connection.
1.2 Industry Classification
Industry refers to an economic activity which is concerned with production of goods,

extraction of minerals or the provision of services28. Akrani, G., (2011)29 defined Industry
as the production side of business activities. It is related to raising, producing, processing
or manufacturing of products. He has also classified industry in several forms. Industry
can be classified into several groups. The following figure shows the classification of
Indian Industry (Chand, S.)30.
(Source: Chand, S., “Industries: Classification of Industry in India”, from

http://www.yourarticlelibrary.com/industries/industries-classification-of-industries-in-india/19707/.)
FIGURE 1.3: Classification of Indian Industry
28
“Industries – Different types of based on Size, Ownership and Technology” last retrieved dated 13.03.2013
from http://www.currentaffairsindia.info/2011/11/industries-different-types-based-on.html
29
Akrani, G. (2011), “What is Industry? Meaning - Classification types of Industries” , last retrieved dated
22.04.2013 from http://kalyan-city.blogspot.in/2011/03/what-is-industry-meaning-classification.html
30
Chand, S., “Industries: Classification of Industry in India”, last retrieved dated 06.01.2013 from
http://www.yourarticlelibrary.com/industries/industries-classification-of-industries-in-india/19707/ .
11
Structure of Thesis
With reference to above diagram, the industry can be classified based on Labour, Raw
Material, Ownership, Sources of Raw Material and Others (miscellaneous).
According to Akrani, G., (2011)28 Manufacturing Industries are engaged in transforming
raw material into finished product by using machine and manpower. The finished goods
can be either consumer goods or producer goods.
1.2.1 Micro, Small and Medium Enterprise Classification
Enterprises have been classified under the Micro, Small and Medium according to
Enterprise Development Act, 200631 of Indian Government. This act includes enterprise
engaged in the Manufacturing of goods pertaining to any industry as well as engaged in
providing Services. The classification of enterprise for the Manufacturing Enterprises has
been defined in terms of investment in plant and machinery (excluding land and buildings),
whereas for the Service Enterprises, it is defined in terms of their investment in equipment.
Under the Act, Micro, Small and Medium Enterprises are classified as shown in following
table: (MSME Annual Report 2009-10).
TABLE 1.1: Micro, Small and Medium Enterprises as Defined in India

Investment in Plant & Investment in
Class/Category Machinery Equipment
( Manufacturing) (Services)
Micro Enterprises Up to Rs. 25 lakhs Up to Rs. 10 lakhs
Above Rs. 25 lakhs Above Rs. 10 lakhs
Small Enterprises
up to Rs. 5 crore up to Rs. 2 crore
Medium Above Rs. 5 crore Above Rs. 2 crore
Enterprises up to Rs. 10 crore up to Rs. 5 crore
(Source: MSME Annual Report 2014-15)
Enterprises have been classified under the Micro, Small and Medium according European
commission32 based on the size of the employees. The criteria for defining the size of a
business differ from country to country.
31
“Enterprise Development Act, 2006 of Indian Government”, last retrieved dated 20.11.2015 from
http://msme.gov.in/sites/default/files/MSMED2006.pdf or
http://msme.gov.in/sites/default/files/MSME_at_a_GLANCE_2016_Final.pdf
32
“Enterprise classification”, European commission last retrieved dated 20.11..2015 from
https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises or
http://ec.europa.eu/eurostat/web/structural-business-statistics/structural-business-statistics/sme or
http://ec.europa.eu/eurostat/statistics-explained/index.php/Glossary:Enterprise_size
12
Structure of Thesis
TABLE 1.2: Micro, Small and Medium Enterprises as Defined in Europe

Class/Category Employees
Micro Enterprises Up to 10
Small Enterprises Above 10 up to 50
Medium Enterprises Above 50 up to 250
(Source: “Enterprise classification”, European commission,
https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises)
1.2.2 Ownership Patterns of MSMEs
According to Government of India, Ministry of Micro, Small & Medium Enterprise,

Annual Report, (2009-10)33, the ownership patterns of MSMEs in India are highly lopsided
and skewed in favour of Proprietary enterprise. 90.35 percent enterprises are Proprietary,
3.85% are partnership, 2.69% are Private Limited, 0.3% is Public Private and 0.3% is
Cooperative Firms. The pattern of ownership structure of MSMEs is also confirmed with
other research studies (Khanka, S.S., 2009) 34 (Banerjee, P., 2008) 35 . Classification of
Industry based on the Ownership is given below (Chand, S.) 36
 Private Sector Industries: Industries owned by individual or firms are called
Private Sector Industries
 Public Sector Industries: Industries owned by the state and its Agencies are called
Public Sector Industries
 Joint Sector Industries: Industries owned by the private firms and the state or its
agencies are called Joint Sector Industries
 Co-operative Sector Industries: Industries owned and run cooperatively by a
group of people , generally produces raw materials of the given Industry are called
Co-operative Sector Industries
33
Annual Report (2009-10), “Ownership pattern of MSMEs” Ministry of Micro, Small & Medium
Enterprise, Government of India
34
Khanka, S.S. (2009), “Entrepreneurial Development”, 10 th Indian Reprint. New Delhi, ISBN
10: 8121918014 / ISBN 13: 9788121918015
35
Banerjee, P. (2008), “Micro, Small and Medium Enterprises of India: Innovation status and states of
affairs.”, India, Science and Technology last retrieved dated 12.02.2013 from
http://www.nistads.res.in/indiasnt2008/t4industry/t4ind8.htm
36
Chand,S., “Industries: Classification of Industry in India”, last retrieved dated 06.01.2013 from
http://www.yourarticlelibrary.com/industries/industries-classification-of-industries-in-india/19707/ .
13
Structure of Thesis
1.3 Structure of the Thesis
Chapter 1
Gives an overview of the general introduction, rationale of the study, significance of the
study and also definition of important terminologies.
Chapter 2
Contains the details of the review of literature under the categories of : Concept of E-
Procurement / e-Tendering, E-Procurement implementation, technology requirements for
participation in e-tendering / E-Procurement, Form / Types of E-Procurement, Benefits of
E-Procurement / e-tendering and Factors that affect implementation of e- procurement etc.
Chapter 3
Discusses the Research Methodology adopted for this research.
Chapter 4
Contains in detail Analysis of Data and Major Findings of the study.
Chapter 5
Contains the conclusions of the study; and also discusses the limitations of the study as
well as the scope for future research.
CHAPTER 1:
Introduction, CHAPTER 2: CHAPTER 3:
Definition of Review of Research
terms and Literature Methodology
Structure of
Thesis
CHAPTER 5:
Conclusion, CHAPTER 4:
References & Limitation and Data Analysis &
Annexure Directions for Major Findings
future research
(Source: Author)
FIGURE 1.4: Schematic Structure of the Thesis
14
Review of Literature
CHAPTER 2
2.0 Introduction
A number of research studies have been conducted on various aspects of E-Procurement

practices. Some valuable studies in the area of E-Procurement practices in various
organisations are being viewed in the present chapter.
In the present Literature Review Chapter approximately 139 articles/ research papers/ PhD
Thesis have been referred to get an overview of the E-Procurement practices. In addition,
across the Thesis, approximately 169 articles/ research papers/ PhD Thesis have been done.
After a thorough study of the literature, the researcher has divided the chapter on Literature
Review in the following main areas, organized in chronological order, based on:
 Concept of Procurement
 Major Function of Procurement
 Challenges Faced by Procurement Managers in the Increasingly Competitive
Business World
 Information Technology
 Concept of E-Procurement
 Public E-Procurement
 The History/ Trends of E-Procurement.
 Procurement Process / Steps
 E-Procurement process / Steps
 E-Procurement Tools and Applications
 Forms of E-Procurement
 E-ordering and web based Enterprise Resources Planning (ERP)
 E-informing
 Electronic Systems to Support Procurement
 Internet to Support Procurement
 Roadmap for E-Procurement implementation.
 Form / Types of E-Procurement.
15
 Technology requirements for participation in e-tendering / E-Procurement.

 How government procurement differs from private procurement.
 Benefits (Drivers) to Implementation of E-Procurement
 Challenges and Risks (Barriers) to Implementation of E-Procurement
 Critical Success Factors (CSFs) of Adoption of E-Procurement
 Factors that Affect E-Procurement Adoption
 Implementation of E-Procurement
 E-Procurement Architecture
 E-Procurement System / E- Procurement Methods
 Integrated Procurement Solutions
 E-Procurement Tool
 Impact of E-Procurement on Organizational Performance
 Development of Research Model or Conceptual Model
 Identifying Best Practices in E-Procurement
In addition, towards the end of the chapter, a tabular presentation of comparative study of
major articles/ research papers/ thesis/ books included in the chapter have been done across
the Research Gap/ Research Objectives, Research Methodology and Key Findings to give
a more representative view. (Refer Table 2.1).
Table 2.2 gives an overview of few major best practices of E-Procurement adopters, with
the monetary/ non-monetary benefits accrued by them. The objective of doing this by the
researcher was to highlight the few role model companies, with the intention that such
practices be replicated.
2.1 Concept of Procurement
Procurement is the act of acquiring, buying goods, services or works from an external
source, often via a tendering or bid process. It consists of all the activities required for
obtaining items from a supplier to the warehouse. Procurement is the important element of
Business operation which involves commerce between two or more businesses.
16
According to Nevalainen, A., (2001) 37 the procurement include the entire operations
considering a requisitioning, transportation, warehousing, and in bound receiving process.
The main aim of procurement is process efficiency (Aldin, et al., 2004)38.
Traditionally, firms use paper based system to procure materials and services by searching
from paper based catalogue provided by suppliers through telephone and fax. The
traditional material procurement process involves generation, copying and transfer of many
paper documents.
2.1.1 Challenges Faced by Procurement Managers in the Increasingly Competitive

Business World
Kalakota, R & Robinson, M., (2001) 39 listed the five key challenges procurement
managers are facing in the increasingly competitive business world are:
 Reducing order processing cost and cycle times
 Providing enterprise-wide access to corporate procurement capabilities
 Empowering desktop requisitioning through employee self-service
 Achieving procurement software integration with company‟s back office systems
 Elevating the procurement function to a position of strategic importance within the
organization.
2.2 Information Technology
According to Min, H. & Galle, W. P., (1999)40 information technology (IT) has helped to
solve several issues in the public sector, and electronic procurement (E-Procurement) has
been introduced as a method to attain higher, more value effective procurement systems.
The execution and usage of information technologies have a powerful impact on business
processes. E-Procurement technology is defined as usage of network technologies and
37
Nenvalainen, A. (2001), “The e-business Dictionary”, Rockbend Books, Alaska.
38
Aldin et al. (2004), “ Business development with electronic commerce: Refinement and repositioning”, last
https://www.researchgate.net/publication/235272281_Business_development_with_electronic_commerce_Re
finement_and_repositioning dated 21.05.2013
39
40
Min, H. & Galle, W. P. (1999), “Electronic Commerce Usage in Business to Business Purchasing.”
International Journal of Operations & Production Management, 4(1), pp. 79–95.
17
practices that facilitate exchange of information with the help of public or non-public
networks.
41
Trauth, T., (2001) said that due to the availability of Internet technologies,
companies have modified the way of purchasing goods and services. Organizations have
introduced a technology referred to as E-Procurement. The Organizations that initially
adopt the concept of e- procurement systems were Dell, IBM etc in the year 1990.
Min, H. & Galle, W., (2003) 42 found that the extent of information technology
infrastructure integration between the organisations has a direct effect on the savings and
benefits on procurement process. Lack of information technology integration has been a
constraint on the benefits developed through the employment of E-Procurement owing to
processes like the need to key information.
Singh, A. et al., (2006)43 said that information technology is playing an important role in
India and has transformed India's image from a slow moving bureaucratic economy to a
land of innovative entrepreneurs. The IT sector in India is generating 2.5 million direct
employments. India is now one of the biggest IT capitals of the modern world and all the
major player in the world belongs to IT sector are present in the country. The use of
Information Technology (IT) has made the world small and through it business
transactions are conducted globally at a faster pace. The age of connectivity has reduced
distances and brought people closer. Today many companies use Information Technology
as a strategic tool to compete with others.
Shaikh, I. et al., (2015) 44 indicated that E-Procurement was one of the most effective
vehicles that were being gainfully utilized in reaching the goal of caring governance. The
use of Information Technology is internet based net applications to boost the access to and
delivery of state information and services to their public agencies, voters, business
partners, employees, financial establishments and government departments. The rapid
growth of competition within the market and also the resultant changes in economic
conditions impose organizations and companies to implement new technologies to remain
competitive. The Central and State Governments, Autonomous Bodies, Judiciary Boards,
41
Trauth, T. (2001), “E-Procurement und e-marketplaces – new trends in B2B e-commerce‟, Electro
technical and Information‟s technique”, Vol. 118, No. 5, pp.253–261.
42
Min, H. & Galle, W. (2003), “E-Purchasing: profiles of adopters and non adopters”, Industrial Marketing
Management, pp. 227-233.
43
Singh A., Thapliyal M.P., Rauthan M.M.S. & Joshi D., (2006), “Enabling e-commerce in India”, last
retrieved on 14th May 2011
44
Shaikh, I., Biswal, N.R., Ray, T.P., Hota, A.K., (2015), “An In depth Understanding of E-Procurement: A
Case Study Approach”, IOSR Journal of Computer Engineering (IOSR-JCE) e-ISSN: 2278-0661,p-ISSN:
2278-8727, Volume 17, Issue 6, Ver. V , PP 20-24
18
Corporations, Joint Ventures, PSUs, Statutory Bodies, Commissions and Councils have
invested in varied initiatives throughout the length and breadth of the country aimed at
extending the advantages of knowledge revolution to rural and remote space. The
Government has good governance by establishing Accountable, Committed, Inspiring,
Responsive, Nationalist, and Genuine Government.
2.3 Concept of E-Procurement
E-Procurement is an automation tool for corporate purchasing process. The core definition
is a business to business sale using the internet as the medium for order processing. E-
Procurement is more than the simple shortening of the supply chain with the Internet
closing time and distance obstacles between suppliers and users of products45. In addition,
According to Chopra, et al., (2001) 46 , the E-Procurement is Business to Business
purchasing practices that utilised electronic commerce (e-commerce) to identify potential
sources of supply, to purchase goods and service, to transfer payment and to interact with
suppliers. Neef, D., (2001) 47considered an E-Procurement is an important step forward in
the development of the enterprise, where the E-Procurement is a process of connecting
customer to business partners.
Croom, S. & Brandon, J. A., (2004)48 defined an E-Procurement as the use of internet-
based integrated information and communication technologies to hold out individual or all
stages of the procurement method together with negotiation, search, sourcing, receipt,
ordering, and post-purchase review.
Black, P. et al, (2005) 49 stated that electronic tendering is an electronic version of
traditional tendering process. It convert traditional acquisition, purchase of goods and
services, supply of goods and services into the Electronic process such as e-tendering, e-
45
“E Procurement - Challenges and Opportunities” last retrieved on 15.03.2016 from http://www.purchasing-
procurement-center.com/E-Procurement.html
46
Chopra, S., Dougan, D and Taylor, G (2001), “B2B e-Commerce Opportunity”, Supply chain Review, 5
(3), pp. 50-62.
47
Neef, D. (2201), “E-Procurement from strategy to Implement”, Financial times Prentice hall Harlow, One
Lake Street, Upper Saddle River, NJ 07458, ISBN 0-13-091411-8, United State of America from
https://books.google.co.in/books/about/E_procurement.html?id=UDaxAcoX1JQC&printsec=frontcover&sou
rce=kp_read_button&redir_esc=y#v=onepage&q&f=false
48
49
Black., P. et al. (2005), “Security and Legal Issues in e-tendering”, last retrieved dated 12.8.2012 from
http://www.construction-
innovation.info/images/pdfs/Research_library/ResearchLibraryA/Project_Reports/Security_and_Legal_Issue
s_in_eTendering.pdf
19
awarding, e-auction, e-sourcing, by using Internet. E-tendering is basically an expression

used to describe the dissemination and receipt of tender information, indication of interest
in tendering, receipt of tender documents, submission of tender sum and final selection of
successful tender for contracts via the internet.
Kameshwaran, S. et al., (2007)50 shared that electronic procurement is a method by which
goods and services can be purchased for the organization through internet and can
supervise the flow of goods and services in the business.
Baily, P. J. H., (2008)51 said that the E-Procurement is the business to business (B2B) or
business to consumer (B2C) or business to government (B2G) purchase and sale
of supplies, work and services through the Internet as well as other information and
networking systems, such as electronic data interchange and enterprise resource planning.
According to Gunasekaran, et al., (2009) 52 , E-Procurement gives an opportunity to
suppliers and patrons, to enlarge the selection of merchandise, and makes
information easily procurable. E- Procurement connects a vast network of business which
helps business people to search necessary information and contact people in a convenient
way.
2.3.1 Public E-Procurement
According to Davila, A. et al., (2003)53 public E-Procurement has been defined as the use
of data and communication technology like web / net based system by governments in
conducting their procurement relationship with bidders for the acquisition of products,
works, services and other consulting services needed by the public sectors. Burton, R.,
(2005)54 indicated that public E-Procurement is the core instrument that helps in economic
management of public resources. An E-Procurement solution helps the government sector
units to procure all materials from office equipments to huge aircrafts and helps to procure
services and projects.
50
Kameshwaran, S., Narahari, Y., Rosa, C.H., Kulkarni, D.M. and Tew, J.D., (2007), “Multiattribute
electronic procurement using goal programming”, European Journal of Operational Research, 2007, vol.
179(2), pp.518–536.
51
Baily, P. J. H., (2008), “Procurement principles and management”, Harlow, England: Prentice Hall
Financial Times. p. 394.
52
Gunasekaran, et al., (2009), “E-Procurement adoption in the South coast SMEs”, International Journal of
Production Economics, vol. 122(1), pp.161-175.
53
Davila, A., Gupta, M and Palmer, R., (2003), “Moving Procurement Systems to the Internet: the Adoption
and Use of E-Procurement Technology Models”, European Management Journal, 21(1)
54
Burton, R., (2005), “Improving Integrity in Public Procurement: The Role of Transparency and
Accountability, in Fighting Corruption and Promoting Integrity in Public Procurement”, OECD Publishing,
pp. 23–8.
20
Vaidya, A. et al., (2006)55 stated that E-Procurement is the recent reform that is adopted by
the Government of Kenya to boost public procurement. Adoption of electronic
procurement may bring sanity within the procurement policies, reduce prices and improve
potency. The target of E-Procurement adoption include: improved accountability, improve
effectiveness and transparency.
According to Pheraon, C & Searraigh, S., (2007)56 Public E-Procurement system provides
all the project information through net. The bidders will read all the project specification,
and they can comply with normal document. Tendering and contract awarding is one of the
foremost stages of public procurement method where most of the corruption occur in
developing countries.
According to Kabaj, O., (2008) 57 an economical public procurement system is very
important to the advancement of African countries economies and may be a concrete
expression of their national commitment to creating the most effective potential use of
public resources.
2.4 The History Trends of E-Procurement
The origin of E-Procurement began in the 1980s, with the development of electronic data
interchange (EDI). EDI allowed customers and suppliers to send and receive orders (and
invoices as well) using call-forwarding networks. In the 1990s, technology, as it tends to
do, improve and software companies began to develop electronic catalogues, specifically
for the vendor‟s use and, E-Procurement software has become a mixture of the two: a
platform for sending and receiving orders and various catalogues. Market places have also
proved to be a popular addition to E-Procurement software”58.
2.4.1 E-Procurement Trends in Global Marketplace
There is no doubt that the Internet is drastically changing the way purchasing is done
globally. It has grown and evolved into a complex marketplace with many players offering
a variety of E-Procurement and business-to-business services. E-Procurement can include
55
Vaidya, A. Sajeev & Callender,G (2006), “Critical Factors that Influence E-Procurement Implementation
Success in the Public Sector”. Journal of Public Procurement, Volume 6, Issues 1 & 3, 70-99
56
Pheraon, C & Searraigh, S. (2007), “Corruption in the petroleum sector”, in SP J. Edgardo (ed.), The Many
Faces of Corruption, World Bank Publications, Washington, D.C.
57
Kabaj, O. (2008), “The Challenges of African Development”. UK: Oxford.
58
“The History of E-Procurement” last retrieved from https://blog.procurify.com/2014/08/11/e-procurement/
21
services such as hosting of databases, catalogue management, managing tenders and

auctions on behalf of clients through to a complete outsourced procurement service59.
Robaty, S. & Bell, D., (2013) 60 said that during the internet era, E-Procurement has
witnessed a steep rise in marketplace deployment; this has been followed by a considerable
range of failures. A number of larger technology suppliers are currently left to support each
tiny and enormous business. Flexibility has been a key enabler in supporting network
evolution across a varied range of domains. The study examines the flexibility around
marketplace evolution, success and failure; inter relationships between architectural
flexibility and the evolving web technology. A systematic literature review was
administered to uncover the changes taken place over the past fifteen years. A conceptual
model is made early in the analysis so as to supply discourse underpinning. Of the 22
relevant studies, one addressed analysis trends around E-Procurement in pharmaceutical
organizations. Three studies addressed E-Procurement in financial organizations. A range
of flexibility classes are uncovered by the systematic literature review which are used as a
way to support versatile E-Procurement marketplace style and adoption, suggesting E-
Procurement marketplace evolution over the duration of the study.
2.4.2 E-Procurement Trends in Private Sector
Externally hosted E-Procurement services are clearly part of a growing trend. Some
specialize by industry sector, like those serving the oil and gas, pharmaceutical and mining
industries, all of which have embraced E-Procurement more than some other sectors. Some
E-Procurement service companies provide the full range of supply network services to
support global procurement transactions. Another E-Procurement trend is where a large
number of corporations elect to manage their E-Procurement in-house. Successful
implementations of E-Procurement are considered as one of the measures of a world-class
purchasing organisation. To do this, they need to install enterprise-wide software to
manage the database and transactions but the big investment in time and money sometimes
means that there is not a compelling business case61.
59
E-procurement trends in Global Marketplace, retrieved from http://www.purchasing-procurement-
center.com/e-procurement-trends.html
60
Robaty, S. & Bell, D., (2013), “A Systematic Literature Review of Flexible E-Procurement journal of
theoretical applied electronic commerce”, Journal of Theoretical and Applied Electronic Commerce Research
ISSN 0718–1876 Electronic Version Vol.8, Issue 2, pp, 49-70.
61
E-procurement trends in the private sector, retrieved from http://www.purchasing-procurement-
22
2.4.3 E-Procurement Trends in Government Sector
Governments are adopting E-Procurement in mature economies more extensively as it

provides structure, audit trails and transparency of transactions. World Bank research has
also found some reluctance by governments in adopting a system that is so fully
transparent. Certain basic requirements need to be fulfilled before an E-Procurement
system can achieve maximum potential in government. These are recommendations by the
World Bank which include expanding Information & Communication Technology (ICT)
services, guaranteeing a secure online environment, development of standards and
processes, and most importantly, for purchasers to be trained62.
Wyld, D.C., (2002)63 examined the state of E-Procurement in the United States through an
extensive analysis of data from the Institute for Supply Management (ISM)/Forrester
reports conducted on e-Business. These reports contain the trends in the use of E-
Procurement methods which include the major benefits of E-Procurement such as
reduction of paper work, reduction of cycle time, ease to collaborate with suppliers, ability
to procure direct and indirect goods and services, use of the Internet to Identify New
Supply Sources, and reduction of total cost of Procurement. This study concluded that the
push towards the E-Procurement is being led by the largest firms and have discussed the
other key trends along with few suggestions.
2.5 Procurement Procedure
Walker, H. & Harland, C. (2008)64 investigated the factors that influence the adoption of
E-Procurement in United Nations (UN). The research finds that E-Procurement is being
used for routine and non-strategic purchases.
Procurement manual (2009) 65 , included procurement process approved by the NZ
Transport Agency (NZTA) under s25 of the Land Transport Management Act 2003
62
E-Procurement Trends in Government Sector, retrieved from http://www.purchasing-procurement-
63
Wyld, D.C., (2002),"The electric company: how the supply chain is being reinvented through the rapid
application of E-Procurement processes in the business-to-business arena", Management Research News,
Vol. 25 Iss 12 pp. 22 – 53 last retrieved dated 08.07.2015 from Emerald Insight.
64
Walker, H. & Harland, C. (2008), “E-Procurement in the United Nations: Influences, issues and impact”,
International Journal of Operations & Production Management, retrieved from Emerald Insight, Vol.28, Iss.9,
pp.831-857.
65
Procurement manual (2009), “Procurement manual: for activities funded through the National Land
Transport Programme”, NZ Transport Agency last retrieved 01.08.2013 from
https://www.nzta.govt.nz/resources/procurement-manual/
23
(LTMA). The procurement procedures in this manual are available for all approved
organizations for use. The NZ Transport Agency requires that all approved organisations
have a procurement strategy that documents an approved organisation‟s long-term
integrated approach to the procurement of transport sector activities funded under s20 of
the Land Transport Management Act (LTMA). The manual contains Legislative and
policy framework, Roles of the NZ Transport Agency and approved organisations,
Strategic approach to procurement, Procurement procedures, Monitoring and auditing,
Guidelines on procurement procedures and Supplier selection methods. The manual refers
to approved organisations and the same rules apply to the NZTA.
66
According to United Nations Procurement practitioner’s Handbook, (2012)
Competition carried out in a fair and transparent way is the main objective of procurement
in the United Nations. The procurement procedure should be carried out in a way that gives
assurance of fair process to all stakeholder of the procurement. The procurement process
should be transparent, which has clear regulations and mechanisms to guarantee
compliance with those regulations such as impartial specifications, purpose assessment
criteria, standard solicitation documents, the same information to all parties, privacy of
offers, etc. Records are open, as suitable, to check by auditors. Transparency identify the
deviations and from fair and identical treatment very early and makes such deviation less
likely to occur. Therefore, it looks after the integrity of the procedure and the interest of the
firm .Agency cooperation provided many benefits to United Nation firms such as improved
individual organization's specialisation, improved discounts based on combined volume,
reduced cost due to economies of scale, reduced maverick buying, increased control over
the procurement process eliminated non value added tasks, reduced long purchase-to-pay
cycle time and reduced transaction cost; and, increased total procurement.
Ware, G.T. et al., (2012)67 said that an electronic procurement had various level of project
identification such as advertisement, eligibility norms for bidding, preparation of
documents and submission of necessary documents for bid, evaluation of bid, finalizing the
contract, performance of contract.
66
UN Procurement practitioner‟s Handbook (2006), “Interagency Procurement Working Group (IAPWG)”
last retrieved dated 29.07.2013 from https://www.ungm.org/Areas/Public/pph/channels/PPH.pdf
67
Ware, G. T., Moss, S., Campos, J.E. and Noone, G.P. (2012), “Corruption in Procurement”, Graycar. A. &
Smith. R., (eds), Handbook of Global Research and Practice in Corruption, illustrated edition, Edward Elgar
Publishing, UK.
24
2.6 Roadmap for E-Procurement Implementation
68
Kalakota, R., & Robinson, M., (2001) discussed the following roadmap for E-
Procurement in his research
 Clarify your goal: Businesses should make sure that the business problem or goal
is well defined and understood.
 Construct a process audit: After setting the goal businesses should analyze their
current procurement process.
 Create a business case for E-Procurement: Setting up a business case for E-
Procurement implementation, as it forces the company to systematically analyze
the business.
 Develop a supplier integration matrix: Without supplier commitment and
involvement, the E-Procurement project is useless.
 Select an E-Procurement application: According to Smeltzer, L. R., Carter, J. R.,
(2001)69 by categorizing the products and services purchased, companies can more
easily decide on the required procurement strategies and E-Procurement
applications.
 Remember: integration is everything: Integrating the E-Procurement solution with
suppliers and company‟s existing back-office systems is the most important thing
in E-Procurement implementation.
 Educate, educate, and educate: Change tends to generate resistance and managers
should deal with it by communicating and encouraging employees to comply with
the new guidelines.
According to PEPPOL (2008)70 ,E-Procurement adoption at regime level was made by the
European Union with its Pan-European Public procurement on-line (PEPPOL) project.
This project is a novel example and a precious model for E-Procurement program at the
provincial level. The organization inside European Union member state communicate
digitally with the other public sector units within another European Union member state
for all procurement processes at the stage of completion of the project.
68
69
Smeltzer, L. R., & Carter, J. R. (2001), “Supply chain management review”, v. 5, no. 2 , p. 76-83
70
PEPPOL (2008), “About Peppol, Pan-European Public Procurement Online”, Available at
http://www.peppol.eu/About_PEPPOL (Accessed April 1, 2012).
25
2.7 Form / Types of E-Procurement
According to Kalakota, R. & Robinson, M., (2001)63 a large number of different

applications and systems of E-Procurement were identified in the literature:
 E-MRO
 Web-based ERP
 E-Sourcing
 E-Tendering
 E-Reverse auctioning
 E-Informing
According to Kishor, V. et al., (2006)71 there were various forms of E-Procurement that
concentrated on one or many stages of the procurement process such as:
 E-Tendering
 E-Marketplace
 E-Auction/Reverse Auction
 E-Catalogue/Purchasing.
2.8 Technology Requirements for Participation in E-Procurement
Subramaniam, C. & Shaw, M. J., (2004) 72 defined E-Procurement system as a Web based
client/ server application used to replace the manual procurement process. According to
him, E-Procurement solutions cover three major procurement areas:
 Procurement Transactions
 Procurement Management, and
 Market Making.
It also impacts four major operative procurement activities:
 Searching of products or services
 Order processing
 Monitoring and control, and
 Coordination of relevant information.
71
Kishor, V, A., Sajeev, S. M. and Guy, C. (2006), “Critical factors that influence E-Procurement
implementation success in the public sector”, Journal of Public Procurement, Volume 6, Issues 1 & 3, pp.70
– 99.
72
Subramaniam C. & Shaw M. J. (2004), “The effects of process characteristics on the value of B2B e
procurement”, Information Technology for Management 5th edition (1-2), 161-180
26
On the buyer side, the E-Procurement solution is usually connected to other existing
information systems, such as ERP. On the supplier side, the solution is mostly connected to
the suppliers order fulfilment system or product catalogues on the website of the supplier.
According to Olukayode, S. et al., (2011)73 the facilities required for the implementation of
a viable e-tendering system may be grouped into three separate categories:
 Hardware,
 Software and
 Internet/network facilities: Dial-up networking, Radio link and VSAT.
2.9 Implementation of E-Procurement
Ageshin, E.A. (2001) 74 studied the drawback of E-Procurement, buyers who adopts e-
procurement are rely on suppliers on the implementation of just-in-time practices. Because
of this, there is an increase in the involvement of suppliers in product design and
development, shorter ordering cycles. Suppliers are disinclined to e- procurement for the
reason of cost involved in training the staff and the risk involved in sharing the business
data.
According to Gupta, M. & Narain, R., (2011)75 E-Procurement offers a range of benefits,
adoption rate is low. An investigation was conducted in Indian organizations about
the electronic procurement adoption and the effect of electronic procurement in these
organizations. From the study, it has been identified that, the objective of E-Procurement is
to provide customer satisfaction, to produce good producers, to improve performance and
product quality delivery of goods in time. The study indicates that the barriers for E-
Procurement adoption were the effect of E-Procurement on performance measures.
Gupta, M. & Narain, R., (2012)76 conducted a survey in 36 Indian Companies about the
implementation of E-Procurement. The findings brings out that companies are using e-
procurement to improve flexibility , to increase customer satisfaction, to provide better
73
Olukayode, S. Oyediran, Adeyemi A. Akintola. (2011), “ A survey of the state of the art of e-tendering in
Nigeria”, Journal of Information Technology in Construction - ISSN 1874-4753
74
Ageshin, E.A. (2001), “E-Procurement at work: a case study”, Production and Inventory Management
Journal, First Quarter, Vol. 42, No. 1, pp.48–53.
75
Gupta, M. & Narain, R., (2011), “A study on some aspects of E-Procurement in Indian Organizations”, 2nd
International Conference on Mechanical, Industrial, and Manufacturing Technologies (MIMT) last retrieved
from https://www.researchgate.net/publication/257546404_A_Study_on_some_Aspects_of_E-
Procurement_in_Indian_Organizations dated 12.06.2015
76
Gupta, M. & Narain, R., (2012), “A survey on adoption of E-Procurement in Indian organisations”, Int. J.
Indian Culture and Business Management, Vol. 5, No. 1.
27
inventory management, and to have on time delivery, etc. The practice of E-Procurement
implementation in Indian companies is likely to increase in near future, for the advantages
it offers like operating in competitive business environment, to easily adopt government
rules, to improve transparency and to eradicate corruption in procurement.
Hassan H, et al., (2014)77 observed that although E-Procurement is complicated, it can be
simplified by the representation of the state of E-Procurement in associate degree
organization to a binary measure through number of existing studies. Although this is
useful to grasp adoption choices, it does not fully capture the reach and richness of the
employment of knowledge technology (IT) innovations. Hence, this study explains the use
of E-Procurement in New Zealand, specifically focusing on the range of E-Procurement
functionalities used in the producing SMEs. The E-Procurement functionalities are seen
from the info and dealing views. A cross-sectional survey is used as a strategy for data
assortment. The SPSS software is used to analyse the info gathered from the 151 senior
managers. Outcomes demonstrate that all of the functionalities, especially those that have
faith in unremarkably accessible technologies, are in use. Nonetheless, complex E-
Procurement technologies like e-auctions are not common.
Mambo P et al., (2015)78 found that over the last few years, the internet has modified the
method business is completed in each trade. E-Procurement has dramatically modified the
way buying is done. Both public and non-public sector establishments have embraced the
advantages accumulated from E-Procurement practices. The Kenyan Government has
suggested adoption of ICT in service delivery to the general public and its citizens within
the Constitution. However, even given the potential advantage of E-Procurement, most of
the government ministries haven't effectively implemented the E-Procurement practices.
The study investigates the factors influencing the implementation of E-Procurement within
the Ministry of Co-ordination of National Government. The sample data of study was
collected from staff operating in numerous Departments of the Ministry of Co-ordination
of National Government and whose head workplace is in capital of Kenya. This study
employs the stratified random sampling technique to cover a sample size of 67 respondents
out of 168. Conjointly, this study relied mostly on primary data collected by the use of
questionnaires. The study provides both qualitative and quantitative knowledge.
77
Hassan H, Alexei Tretiakov, Dick Whiddett, Iskandar Adon (2014), “Extent of E-Procurement use in
SMEs: A descriptive study”, International Conference on Accounting Studies, Social and Behavioral
Sciences 164, pp. 264 – 270.
78
Mambo P., Ombui K., Kagiri A (2015), “Factors Influencing Implementation of E-Procurement in the
National Government: A Case of the Ministry of Interior and Co-Ordination of National Government”, Vol.
2 (46), pp 951-999
28
2.9.1 Implementation of E-Procurement by Government Agencies / Solution
Bubeck, B. & Fuchs, G., (2003)79 found that e-tendering is mainly used to accommodate
the requirements of the government sector units. Government sector units make use of e-
journals to advertise tender notices rather than publishing newspaper advertisements. This
strategy helps in the grant of contracts of high costs with a benefit of saving prices usually
spent on advertisements in newspapers. E-journal is mainly used to advertise tender, filling
up tender documents or to get them from the website in terms of soft copy format.
As per a Report by World Bank (2003) 80 e-tendering solutions are complicated and
typically include numerous modules like tender procedure, decision on tender applications,
document preparation for tender, etc., e-journal is used for issue of notices regarding
tender which includes bidder‟s registration and document shipping, preparation of bid with
a digital signature and at last submission of application analysis of bids. E-Procurement
methods normally provide solutions for electronic purchase of goods and services, but e-
tendering is designed to digitally manage the tendency procedure.
Reunis, M.R.B. & Raaij, E.M.V., (2006) 81 discussed some proactive influence which
encourages the electronic procurement adoption. For example; different ways of providing
summaries as per the demand of a genuine work, teamwork, influential recommendation,
management request, appraisal and control. Schoenherr, T. & Tummala, V.M.R. (2007)82
in their study on E-Procurement solutions employed in government undertakings report
the details of tender opportunities, solutions like e-catalogue, e-tendering, e-auction and e-
marketplace.
Basheka, B.C. & Bisangabasaija, E., (2010)83 believed that initially E-Procurement was
used by non-public sector, later attracted the government sector. The important
aspect for adoption of e- procurement in developed countries is better administration. E-
79
Bubeck, B. & Fuchs, G. (2003), “Structural changes in the administration and e -Government - The Case
of the electronic E-Procurement and procurement”
80
World Bank (2003), “Electronic Government Procurement (e-GP): World Bank Draft Strategy”,
Procurement Policy & Services Group, Washington, D.C. last retrieved dated 01.04.2012 from
siteresources.worldbank.org/INTPROCUREMENT/.../eGPStrategyfortheWBword.doc
81
Reunis, M.R.B. and Raaij, E.M.V. (2006) “Scale development for E-Procurement (EP) adoption influence
tactics, creating and managing value in supply networks”, Proceedings of the 15th IPSERA Conference, San
Diego, California. Last retrieved from
http://s3.amazonaws.com/academia.edu.documents/37745021/197621.pdf?AWSAccessKeyId=AKIAIWOW
YYGZ2Y53UL3A&Expires=1494414986&Signature=WHAzkWjP8Pswx5Ozne3EO42IMCE%3D&respons
e-content-disposition=inline%3B%20filename%3DScale_development_for_E-procurement_EP_a.pdf dated
24.11.2015
82
Schoenherr, T. and Tummala, V.M.R. (2007) “Electronic procurement: a structured literature review and
directions for future research”, International Journal Procurement Management, Vol.1, Nos. 1/2, pp.8–37.
83
Basheka, B.C. & Bisangabasaija, E. (2010), “Determinants of unethical public procurement in local
Government systems of Uganda: a case study”, Int. J. Procurement Management, Vol. 3, No. 1, pp.91–104.
29
Procurement is used to fight corruption in underdeveloped countries where the corruption

rate is high. Government procurement accounts for 20 percent of public spending. In some
African countries, this will amount to as high as 70%. A reduction in public spending by
as little as 1% will build make a big difference by releasing huge amount of people‟s
money.
Greunen, D.V. et al., (2010)84 focussed on adoption of E-Procurement by government
agencies and the method of remodelling procurement practices in accordance with national
economic strategy. In order to deal with various socio economic challenges, government is
switching to technology to deal with issues like obsolete procurement practices. E-
Procurement provides the introduction of internationally accepted best practices to
facilitate the government to deliver on its mandate. From the background of South
African legislation that governs the procurement practices in accordance with National
Economic Development Initiatives is the main insight of this study. The study explains
how best Japanese Cape Provincial Administration will succeed in achieving the national
and provincial socio economic growth objectives. Reports and other primary sources of
information were used, and expert interviews were conducted to answer these queries. It
was found that measurable benefits of supply chain management haven't been completed
owing to general restricted understanding and how the supply chain management
conception works at government surroundings. Other limitations are lack of understanding
within the execution of policy and legal framework that govern obsolete, procurement,
disparate procurement systems and ICT infrastructure.
2.10 Benefits (Drivers) to Implementation of E-Procurement
Thai, K. & Grimm, R., (2000) 85 found that the implementation of E-Procurement
initiatives should be seen as an effort to improve the procurement goals, which normally
include quality; timeliness; cost minimizing, business‟s financial and technical risks;
maximizing competition; and maintaining integrity. Brack, K., (2000) 86 found out that
buyers indicated that the conversion from paper-based to e-purchasing resulted in a
84
D. Van Greunen, M. E. Herselman and J. Van Niekerk (2010), “Implementation of regulation-based E-
Procurement in the Eastern Cape provincial administration”, African Journal of Business Management Vol.
4(17), pp. 3655-3665, ISSN 1993-8233, Academic Journals.
85
Thai, K. & Grimm, R. (2000), “Government Procurement: Past and Current Developments.” Journal of
Public Budgeting, Accounting and Financial Management, 12 (2), pp.231-247.
86
Brack, K. (2000), “E-Procurement: the next frontier”, Industrial Distribution, 89(1), pp. 65-68.
30
reduction of purchasing cost, reduction in inventory level, a 5-day reduction in cycle time,
a US$77 saving per requisition administrative cost.
According to Attaran, M., (2001)87 in the international context, it will be necessary to gain
a competitive advantage in the future and use of Internet is becoming the necessary
condition of doing businesses in the global market. Electronic ordering appears to be the
trend for the future. With all the benefits that Web-based procurement offers, it would
seem that eventually every industry would turn to it. The reduction of paperwork, less
errors, accurate information, better inventory management, as well as quicker delivery
times, all lead us to believe that it's just a matter of time when every company will employ
this technology. The aim of this paper is to identify tips for IT managers for successful
implementation of the technology. Study found that the internet based technology gives
companies an opportunity to gain a competitive advantage. The proper implementation of
such technology is a key management issue. To make this technology successful, IT
managers must work to a plan and lay technology groundwork. They must believe in the
benefits of this technology, opt for a comprehensive approach, define new relationships
with vendors, train and support suppliers, and openly communicate with employees. The
employees play an equally important role in the success of this technology. To prepare
workers for their new roles, management needs to begin an education and training
program.
According to Aberdeen Group Inc., (2001) 88 and de Boer L. et al., (2002) 89 E-
Procurement advantages are significant bottom line benefits, including cost reduction,
process efficiencies, spending controls and compliance.
Gunasekaran et al., (2002)90 found that electronic procurement will provide firms to cut-
short the procurement period, get lowest price through bidding, minimize product
development period and speed up the time-to-market the product, access to global
markets, make sure that costs and selling info are continuously updated, improves
87
Mohsen Attaran, (2001),"The coming age of online procurement", Industrial Management & Data
Systems, Vol. 101 Iss 4 pp. 177 – 181 last retrieved dated 08.07.2015 from Emerald Insight.
88
89
de Boer L., Labro, E., Morlacchi, P., (2002), “A review of methods supporting supplier selection”,
European Journal of Purchasing and Supply Management 7 (2), pp 75-89.
90
Gunasekaran, A., Marri, H.B., McGaughey, R.E. and Nebhwani, M.D. (2002), “E-commerce and its
impact on operations management”, International Journal of Production Economics, Vol. 75, Nos. 1/2,
pp.185–197.
31
communication speed, minimize geographical barriers, develop a good relationship with

clients.
In a similar vein, Consortium for Global Electronic Commerce (CGEC), (2002) 91
identified cost, quality, program management progress measures (on-time, on-budget, and
issue management), process performance factors, and Return on Investment as the most
relevant measurements.
According to Min, H. & Galle, W., (2003) 92,main E-Procurement benefits are (a) Cost
savings and subsequent increase in return-on-investment (b) Enhancement of supply chain
efficiency by providing real-time data regarding product availability, inventory level,
shipment status, production requirements (c) Facilitation of collaborative planning among
supply chain partners by sharing data on demand forecasts and production schedules that
dictate supply chain activities (d) Effective linkage of customer demand information to
upstream SCM functions, while also facilitating “pull” (demand-driven) SCM operations.
Croom, S. & Brandon-Jones, A., (2004) 93 indicated that reducing the administrative
aspects of the procurement method through E-Procurement permits buying professionals to
pay longer attention on strategic aspects of procurement like improved supplier
relationships and communication processes.
Kauffman, R. & Mohtadi, H., (2004)94 reported that E-Procurement systems benefit each
customer and provider facet for all task concerned with the procurement method. Cost
saving will occur through improvement in effectiveness and efficiencies of procurement
tasks by minimising the purchase prices and the minimising the administrative functions.
Eadie, R., et al.,95 examined the drivers and barriers for E-Procurement in construction in
Northern Ireland. Findings show that the two highest ranked drivers by the contractors
were improving communication and reduced administration costs, while the two most
important barriers were security of transactions and the uncertainty surrounding the legal
issues of E-Procurement.
91
Consortium for Global Electronic Commerce (CGEC) (2002), “Measuring and Improving Value of E-
Procurement Initiatives”, Madison, WI: University of Wisconsin- Madison.
92
Min, H. & Galle, W. (2003), “E-purchasing: profiles of adopters and non adopters”, Industrial Marketing
Journal, 32(2), pp.227-233.
93
94
Kauffman, R. & Mohtadi, H. (2004), “Proprietary and Open Systems Adoption in E-Procurement: A Risk-
Augmented Transaction Cost Perspective”. Journal of Management Information Systems, 21(1), 137-166.
95
Eadie, R., Perera, S., Heaney, G., Carlisle, J. (2007), “Drivers and Barriers to Public Sector E-Procurement
within Northen Ireland‟s Construction Industry”, Journal of Information Technology in Construction,
pp.103-120, ISSN 1874-4753
32
Eadie, R. et al., (2012) 96 carried out study with focus group, consisting of 5 domain
consultants, delineated the varied aspects and levels of experience of construction
procurement, namely: e-auctions, web-based materials procurement e-tendering, compact
disc write once, the contractor‟s perspective and electronic document production. This
group created a comprehensive list of construction-based E-Procurement drivers and
barriers. A detailed form for a web-based survey was created from the findings of this
focus cluster to establish the important rankings of those drivers and barriers. A telephone
survey was conducted to all Surveyors at the United Kingdom, listed on the Royal Institute
of Chartered Surveyors (RICS) web site to identify the usage of E-Procurement by
surveyors. This was followed by a web-based survey of the known organisations on E-
Procurement for construction-based activities. This study denotes the findings of the driver
and barrier verification study and also the driver and barrier importance ranking survey.
Further analysis can link the drivers and barriers to E-Procurement to the 5 maturity levels
in Paulk‟s maturity model through statistical analysis.
2.10.1 Key Business Value Findings
Attaran, M., (2001)97 listed the benefits of E-Procurements below in three main categories:
 Strategic : This includes organizational changes and market benefits
 High level of leverage opportunities: This involves improved business dealings
with suppliers and discover new suppliers and,
 Operational benefits: This involves more economical procurement.
Aberdeen Group Inc, (2001) 98 conducted the study of those enterprises that have
implemented best practices in the use of E-Procurement to control costs, rationalize
procedure, and improve openness across the extended supply chain. In 2001, Aberdeen
gathered the information and examined the E-Procurement implementation from more than
50 companies. The study categorised the implementation into: indirect E-Procurement,
direct E-Procurement and E-sourcing. The researcher has blindly evaluated the e-
96
Robert Eadie, Srinath Perera, George Heaney, (2010), “Identification of E-Procurement Drivers and
Barriers for UK Construction Organisations and Ranking of these from the Perspective of Quantity
Surveyors”, www.itcon.org - Journal of Information Technology in Construction - ISSN 1874-4753. ITcon
Vol. 15, pg. 23-43 last retrieved from http://www.itcon.org/paper/2010/2 dated 16.07.2015
97
Attaran, M. (2001), „The coming age of E-Procurement”, Industrial Management and Data Systems, Vol.
101, No. 4, pp.177–181.
98
33
procurement implementations based on the multiple metrics, including usage, spending

volume, process efficiencies, and cost savings. The report included in depth case studies of
eighteen best E-Procurement Implementations. The report helps the Procurement
Managers, Corporate Officers, Business and Information technology mangers to find the
best practices for choosing, installing and Managing E-Procurement.
Thai, K.V., (2001)99 found that the implementation of E-Procurement initiatives should be
seen as an associate effort to enhance the procurement goals, which involves quality,
timeliness, cost, minimizing the risk in the areas like financial and technical risks,
maximising competition, and maintaining integrity.
Aberdeen Group Inc., (2005) 100 carried out a research to discover the key tactics and
strategy for successful implementation of E-Procurement. E-Procurement implementations
from 25 Companies were strongly examined by researchers. The study also found that the
effective implementation of E-Procurement provides benefits like Reduction in
Transaction costs, Enhance procedure efficiency, Elimination of Maverick buying,
Increase Contract Compliance, Reduction in Cycle time, Reduction in the Inventory costs
etc. Use of an E-Procurement system has freed supply management and other personnel to
focus on creating value for the enterprise. Aberdeen Group Inc., (2007)101 is the fifth in a
series of Aberdeen benchmark studies, which have been conducted since 1998, focusing on
e -procurement performance and examining the goals, hurdles, strategies and results of 622
enterprises. This report also identifies the practices employed by Best- in - Class
enterprises to maximize spending under control and optimize the value of their E-
Procurement initiative. Use of E-Procurement resulted in improved enterprise. Based on
the research, Aberdeen recommends various strategies for improved results: Leverage
supplier networks and catalogue hubs, Enable electronic purchase order, Expand the E-
Procurement footprint to integrate with contract compliance, invoice reconciliation, and
payment solutions, Conduct periodically analysis, embrace on demand solutions that
integrate with ERP and Add processes, people, and technology to manage complex items
or service.
99
Thai, K. V. (2001), “Public procurement re-examined”. Journal of Public Procurement, 1(1), pp. 9– 50.
100
Aberdeen Group, Inc. (2005), “Best Practices in E-Procurement (Reducing Costs and Increasing Value
through Online Buying)”, Massachusetts, last retrieved dated 05.06.2013from http://www.cosmo-
one.gr/educommerce/wp-content/img/en2_1.pdf
101
Aberdeen Group Inc. (2007), “E-Procurement: Trials and Triumphs”, last retrieved dated 05.06.2013 from
http://www.enporion.com/media/whitepapers/eprocurement_trials_and_triumphs.pdf
34
According to Pearcy, D.H. & Giunipero, L.C., (2008) 102 , several companies adopt E-
Procurement to attain the projected edges of lower value and increased potency, the use of
electronic procurement will bring positive outcomes for patrons and suppliers.
Haffar, N. & Wassim, M.103 concluded that Procurement is a collection of processes that
involve many steps and interactions with the other departments of a company and with the
suppliers. Because purchasing costs typically run to 50% of operational costs, the
procurement process provides many opportunities for cost savings that can make a great
difference to a company's bottom line. The rule of thumb is that a 5% savings in
purchasing costs can increase profit by 50%, and would equally increase revenue by 50%,
or a reduction in overhead costs of about 20%.
(Source: Haffar, N. & Wassim, M., “E-Procurement Technology”, Dubai Municipality, price water house
coopers)
FIGURE 2.1: Savings Due to E-Procurement Implementation
102
D. H. Pearcy, and L. C. Giunipero, (2008), “Using E-Procurement applications to achieve integration:
what role does firm size play”, Supply Chain Management: An International Journal, vol. 13(1), pp.26-34.
103
Haffar, N. and Wassim, M., “E-Procurement Technology”, Dubai Municipality, price water house
coopers last retrieved dated 21.02.2014 from
https://www.dm.gov.ae/wps/wcm/connect/.../E_procurement.ppt?
35
2.11 Challenges and Risks (Barriers) to Implementation of E-

Procurement
In a research by Davila, A. et al., (2003) 104 four risks associated with adopting E-
Procurement technologies were identified.
 Internal business risks: Businesses have to be careful while integrating E-
Procurement technologies with other business applications such as accounting,
human resources, accounts payable and cash management.
 External business risk: E-Procurement solutions also need to be able to cooperate
with suppliers of IT-infrastructure.
 Technology risks: Many companies are unsure about which E-Procurement
solution best suits the specific needs of their company.
 E-Procurement process risks: This risk relates to the security and control of the E-
Procurement process itself.
Darlington, R., (2006) 105 found that the major risks factors relating to electronic
transactions on the internet include hacking, viruses, pirating, illegal trading, fraud, money
laundry, defamatory libel, among several others. All of these have very destructive impacts
on trust and transparency in the process of tendering.
A study by Angeles, R. & Nath, R., (2007) 106 was conducted to seek to pursue the
understanding of current business-to-business E-Procurement practices by describing the
success factors and challenges to its implementation in the corporate setting. In this
research, data was collected from 185 organizations which are the members of the Institute
for Supply Management and the Council of Logistics Management through questionnaire
survey. Questionnaire is divided in two stages, the first stage captured E-Procurement
success factors and the other stage gathered data to determine the challenges to successful
E-Procurement implementation. Factor analysis was used to analyze data from valid
responses. The researchers have identified three important challenges to E-Procurement
implementation and these are: (1) Lack of system integration and standardization issues (2)
104
Davila, A., Gupta, M. & Palmer, R. (2003), “Moving procurement systems to the Internet: adoption and
use of E-Procurement technology”, European Management Journal, Vol. 21, No. 1, pp.11-23
105
Darlington R. (2006), “Crime on the net”. Retrieved on 22.03.2013 from
http://www.rogerdarlington.me.uk/crimeonthenet.html#What%20Are%20The%20Categories
106
Angeles, R. & Nath, R. (2007), “Business-to-business E-Procurement: success factors and challenges to
implementation”, Supply Chain Management : An International Journal, Emerald Group Publishing Limited,
ISSN 1359-8546, Volume 12 Number 2, 104-115.
36
Immaturity of providers of E-Procurement services and the lack of supplier preparation,

and the resistance of solutions end users. (3) It is very difficult to change purchasing
related behaviour among the company‟s employees.
United Nations Procurement practitioner’s Handbook (2012)107 included characteristics
of risk level, spending categories and possible strategies also. The risks mentioned in this
handbook are:
 Routine Purchase (Low risk and Low Spend)
 Leverage (Low Risk and High Spend)
 Bottleneck (High Risk and Low Spend)
 Strategic (High Risk and High Spend)
 Procurement falling into the leverage, and
 Bottleneck and strategic categories would be considered as “significant purchases”.
2.11.1 Challenges of E-Procurement Implementation in the Government Sector
Aman, A. & Kasimin, H., (2011)108 had carried the study to understand the challenges of
E-Procurement implementation in the Government Sector in Malaysia. Study found that
the challenges in e- procurement implementation were not only related to Software
integration, Data Management and roll out strategy, these challenges also include legal and
administration procedures, Information Technology (IT) infrastructure, Outsourcing
Contract and IT skills, etc.
Barahona, J.C., (2012)109 surveyed and found that E-Procurement brings a set of recent
rules and dynamics that make ways of doing business with the government in a different
fashion, with a new set of participants, new incentives and a radically different value
structure; conditions that have the potential to produce a competitive marketplace of
transparency, efficiency and access. The researcher shows that literature has failed to
recognize the innovation in E-Procurement. The findings of this study contribute to
detailed understanding of the factors that promote the successful implementation of E-
107
UN Procurement practitioner‟s Handbook (2006), “Interagency Procurement Working Group (IAPWG)”
last retrieved dated 29.07.2013 from https://www.ungm.org/Areas/Public/pph/channels/PPH.pdf
108
Aman, A. & Kasimin, H. (2011),"E-Procurement implementation: a case of Malaysia government",
Transforming Government: People, Process and Policy, Vol. 5 Iss 4 pp. 330 – 344 last retrieved dated
08.07.2015 from Emerald Insight.
109
Juan Carlos Barahona, (2012), “The Disruptive Innovation Theory Applied to National Implementations
of E-Procurement”, ISSN 1479-439X 107, Electronic Journal of e-Government Volume 10 Issue 2 2012,
pp107 – 119.
37
Procurement systems with the operational model and technology which is required by
several governments.
According to Panda, P. & Sahu, G.P., (2012)110 , the 21century has seen migration of
several governance functions and services to web. The adoption of E-Procurement by
government entities to economise and optimise the public procurements has been the
catchphrase of clear governance. In fact, E-Procurement has been touted as cure-all for
corruption. Literature is replete with studies which underline varied edges of migration of
procurement functions to web. However, e-Government procurement has not taken off in
India through its associate Integrated Mission Mode Project as a section of National e-
Governance Project (NeGP) launched by Govt of India in 2006. A current review of the E-
Procurement implementation by Ministry of Communication and IT convey the progress of
E-Procurement project implementation. The research methodology followed a detailed
study of E-Procurement literature, government orders and multinational and international
agreements to identify Critical Success Factors. The study concludes that existing literature
indicates flat nature of Critical Success Factors i.e. there is no relation with the stage of e-
Governance Project implementation verses significance of a Critical Success Factors.
Therefore, existing Critical Success Factors and their study models do not aid managerial
higher cognitive process by project managers. Finally, the study brings out analysis gaps
and suggests direction for future research for achieving success in e-Governance Project in
India.
2.12 Critical Success Factors (CSFs) of Adoption of E-Procurement
Many studies have been conducted on critical success factors and Challenges of E-
Procurement. According to Rezgui, Y. et al., (2004)111 , organizational and human issues
have also been highlighted as key factors affecting the use of technologies in the
construction sector. Sigala, M., (2005)112 conducted a study with the objective to identify
the E-Procurement adoption factors through literature and to find their impact by gathering
110
Prabir Panda and GP Sahu (2012), “E-Procurement Implementation: Critical Analysis of Success Factors‟
Impact on Project Outcome”, SSRN 2019575, Elsevier, from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2019575
111
Rezgui, Y., Wilson, I.E., Damodaran, L., Olphert, W., & Shilboum, M. (2004), “ICT adoption in the
construction sector: Education and training issues”. ICCCBE-X: the Xth International Conference on
Computing in Civil and Building Engineering, Bauhaus-University, Weimer, Germany. Last retrieved dated
22.03.2013 from file:///D:/Downloads/icccbe-x_258.pdf
112
Sigala, M. (2005), “E-Procurement Use and Adoption Barriers: Evidence from the Greek Foodservice
Sector.” Springer, pp. 393-404.
38
the data from Greek foodservice operators. Research provided the initial evidence of the E-
Procurement adoption in Greek Food service operation. Organizations were found in their
beginning phase of E-Procurement use. In adoption of E-Procurement, the Organizational,
Technological and Environmental factor play a crucial role. Study found that the firms
which perceived E-Procurement as advantageous, non-complex, friendly and risk free were
more likely to adopt E-Procurement. Findings also revealed that organizations with
knowledge and skills on E-Procurement are more likely to adopt it.
Kishor, V. et al., (2006)113, identified related variables for each Critical Success Factors
(CSFs) and presented a model of the Critical Success Factors (CSFs), which are expected
to impact the achievement of E-Procurement initiatives in the public sector. This paper
identifies eleven aspects during the survey of E-Procurement Literature and these aspects
are end-user training, supplier adoption, compliance with best practices for business
case/project management, systems integration, security and authentication, re-engineering
the process, top management support, performance measurement, change management, E-
Procurement implementation strategy, and technological standards. Study found that E-
Procurement has a better reach and scope than traditional Procurement. Key differences in
the approach to the development of e- Procurement projects were also noted during the
study. Interestingly, the legal and legislative issues did not emerge as CSFs, although
aspects such as top management support and performance measurement were found to be
critical projects.
Williams, S.P. & Hardy, C.A. (2007) 114 presented the findings from a survey of E-
Procurement in Australia. The survey was designed around the OECD model of e-business
adoption and provided a picture of the readiness, intensity and impact of E-Procurement in
Australian organisations.
In a study conducted by Vanjoki, V., (2012)115 , reasons were identified as to why more
companies have not adopted E-Procurement for indirect purchases; and how can E-
Procurement vendors make E-Procurement more attractive for companies.
113
Kishor, V, Sajeev , A. S. M. and Guy, C. (2006), “Critical factors that influence E-Procurement
implementation success in the public sector”, Journal of Public Procurement, Volume 6, Issues 1 & 3, pp.70
– 99.
114
Williams, S. P. & Hardy, C. A. (2007), “E-Procurement: Current Issues & Future Challenges”, „ECIS‟,
University of St. Gallen, pp. 131-142.
115
Viljami Vanjoki (2012), “Problems related to the adoption of E-Procurement for indirect purchases”,
School of Business, Lappeenranta University of technology from
http://www.doria.fi/bitstream/handle/10024/76986/Problems%20related%20to%20the%20adoption%20of%2
0e-
39
Robert, M.A & John, O.A. (2012)116 examined the factors that affect implementation of E-
Procurement within the textile and apparel firms in Kenya. Specifically it sought to
investigate the effect of organizational issues, environmental factors and technological
factors on the implementation of E-Procurement.
2.13 Factors that Affect E-Procurement Adoption
Sharon, P. & Dooley, K., (2005)117 considered various factors affecting the adoption of E-
Procurement systems in Australian firms. A model of buyer perceptions on the factors that
affect E-Procurement adoption was analysed. The study reveals that supplier relationships
and buyer perceptions have a direct influence on E-Procurement adoption whereas other
factors have an indirect influence.
Kishor, V., (2005)118 found that E-Procurement has a technological viewpoint. However,
factors related to other perspectives such as transactional, organizational and
environmental have not been sufficiently investigated in previous studies. In order to fill
this gap, this study investigated the intensity of E-Procurement assimilation from the four
perspectives: Transactional Perspective, Environmental Perspective, Technological
Perspective and Organizational Perspective. The Study explained the determinants of E-
Procurement assimilation and antecedent conditions of E-Procurement assimilation.
Sigala, M., (2005)119 conducted a study with the objective to identify the E-Procurement
adoption factors through literature and to find their impact by gathering the data from
Greek foodservice operators. Research provides the initial evidence of the E-Procurement
adoption in Greek Food service operation. Organizations were found in their beginning
phase of E-Procurement use. In adoption of E-Procurement, the Organizational,
Technological and Environmental factor play a crucial role. Study found that the firms
which perceived E-Procurement as advantageous, non-complex, friendly and risk free were
procurement%20for%20indirect%20purchases.pdf;jsessionid=09A38B426B42645DF75B57E9140FC9A0?se
quence=1
116
Robert, M.A & John, O.A. (2012), “ Antecedents to Successful Adoption of E-Procurement in Textile and
Apparel Firms in Kenya” International Journal of Scientific & Engineering Research, ISSN 2229-5518,
Volume 3, Issue 10.
117
Sharon, P. & Dooley, K.,, (2005), “Model Of E-Procurement Adoption”, ANZMAC Conference:
Retailing, Distribution Channels and Supply Chain Management
118
Kishor,V. (2005), “Antecedent Conditions Influencing E-Procurement Assimilation” Proceedings of the
Fifth International Conference on Electronic Business, Hong Kong, December 5-9, 2005, pp. 372 - 377.
119
Sigala, M. (2005), “E-Procurement Use and Adoption Barriers: Evidence from the Greek Foodservice
Sector”, Springer, pp. 393-404.
40
more likely to adopt E-Procurement. Findings also revealed that organizations with
knowledge and skills on E-Procurement are more likely to adopt it.
Croom, S., R. & Brandon-Jones, A., (2005)120 in their study explored five major themes
which were derived from available literature:
 Impact on cost efficiency
 The impact on the form and nature of supplier transaction
 E-Procurement system implementation
 Broader Information Technology issues; and
 The behavioural and relational impact of E-Procurement.
The research study was intended to explore the perceptions and reflections of both „early‟
and „late‟ adopters of E-Procurement. Seven key lessons learned from E-Procurement
implementation across a range of UK public sector organisations are:
 Lesson 1 and 2, significant motivation for e- procurement adoption was considered
to be the economic benefits.
 Lesson 3 and 4, detailed the rollout experiences.
 Lesson 5 and 6 were concerning system selection and integration. and,
 Lessons 7 examined organisational commitment and support required for E-
Procurement.
Angeles, R. & Nath, R. (2007)121 conducted the study to understand the E-Procurement
practices, which mainly focus on the success and challenges in implementing an E-
Procurement. Researchers have used factor analysis and identified three success factors of
E-Procurement implementation
 Supplier and Contract Management
 End user behaviour and
 E-Procurement business process.
Researchers have also identified the following three factors on challenges in E-
Procurement implementation
 Lack of System Integration and Standardisation Issues
 Immaturity of e- procurement base market services and end-user resistance and
120
121
Angeles, R. & Nath, R., (2007), “Business-to-business E-Procurement: success factors and challenges to
implementation”, Supply Chain Management : An International Journal, Emerald Group Publishing Limited,
ISSN 1359-8546, Volume 12 Number 2, 104-115.
41
 Maverick buying and difficulty in integrating e-commerce with other systems.

Using factor analysis, this study has reduced a total of 12 variables into three success
factors and thirteen variables into three challenges to implementation factors for E-
Procurement from the buyer firms‟ perspective.
Fredrick, O. et al., (2013)122 determined the factors influencing the use of e- procurement
system in firms in Kisi city. The study adopted a descriptive survey method. The study
considered a population of 105 firms in Kisi city. The details of sample were collected
from Kisi County Offices as on 31st Jan‟ 2013. The researcher employed purposive
sampling to choose thirty two companies, translating into 32 procurement officers. Data
was gathered through questionnaires. Descriptive statistical techniques were used and
findings bestowed in kind of tables, charts and graphs. The research findings discovered
that all the variables were statistically significant: E-Procurement capability, price of E-
Procurement and E-Procurement models affect the use of E-Procurement. The researcher
came up with the recommendations: individual companies ought to increase the proportion
of expenditure on E-Procurement; widening the scope of provider sourcing thereby
justifying use of E-Procurement, companies want to increase the e procurement capability
in terms of IT experience and IT infrastructure injecting regular upgrading of IT system
and management of company to expand the use of E-Procurement by incorporating E-
Procurement processes in addition to all E-Procurement models.
Norfashiha, H. et al., (2013) 123 observed that E-Procurement is gaining popularity in
business and a number of advantages have inspired its adoption, such as increasing
competitiveness and reducing prices. Previous research claimed that E-Procurement might
bring vital price to companies, but we tend to understand very little or nothing by trial and
error concerning the particular outcomes of its implementation within the industry. This
study addresses this gap in knowledge through a survey of one hundred twenty
construction companies in Malaysia. The findings indicate that the price of E-
Procurement‟s value is mostly restricted to enhancements in operational and military
science areas. The improvements in the market access and customer/supplier relationships
are not noticed. These empirical findings provide helpful information for construction
companies that want to embark upon and E-Procurement adoption journey. Furthermore,
122
Omany Fredrick, Otieno Njeri, Nancy Muthoni and Mungai Simon (2013), “Factors Affecting Use of E-
Procurement: A Survey in Selected Firms in Kisii Town”, Kenya, Interdisciplinary Journal of Contemporary
Research in Business, Vol 5, No 4.
123
Norfashiha Hashim, Ilias Said and Nur Hidayah Idris (2013), “Exploring E-Procurement Value for
Construction Companies in Malaysia”, Conference on enterprise Information Systems /International
Conference on Project Management , 836-845
42
the measures produced here could be used as a benchmarking exercise for the companies
who have already adopted E-Procurement practices.
Kumar N.V.K. & Srinivasan B., (2013)124 have conducted a study on Transportation trade
in general and marine transportation industry in particular and found that it is not an
exception in E-Procurement. Partners, customers, collaborators, agents, shippers, port
operators, suppliers and service agencies are concerned with the ship transport trade, and
one of the most important requirements in such a supply chain is the high speed
transferring of information between them. In marine transportation, E-Procurement method
plays an essential role. In this study supported by the literature review, seven most
frequently mentioned factors were found. These performance factors were: visibility of
supply chain, cost, procurement management, cycle time, inventory management and
purchasing errors that were influenced by executing E-Procurement. This analysis tries to
search out the performance result of E-Procurement implementation in ship management
firms.
2.14 E-Procurement Architecture
Cagliano, R. et al., (2003)125 in their research study have studied three important factors
that mostly use web technology and these are: electronic-procurement, electronic-
commerce and electronic- operations. E-commerce refers to sales of goods through
internet. E- Procurement involves the usage of web in procurement activities that includes
procurement of each strategic element. E-operations means the employment of net within
the activities across the corporate chain, like processing of orders, planning the production,
store management and planning the supply chain management.
Maniatopoulos, G. (2004)126 found that public sector procurement methods are extremely
complicated due to the character of the government establishments and are typically bound
by rules of native, regional, national and international public organisations. According to
124
Kumar N.V.K. & Srinivasan B (2013), “Implementation and Performance Effect on Electronic
Procurement and its Ship Management Companies”, I.J. Information Engineering and Electronic Business,
Published Online in MECS(http://www.mecs-press.org/)DOI:10.5815/ijieeb.2013.05.02 or
http://www.mecs-press.org/ijieeb/ijieeb-v5-n5/IJIEEB-V5-N5-2.pdf
125
Cagliano, R., Caniato, F. and Spina, G. (2003), “E-business strategy: How companies are shaping their
supply chain through the internet”, International Journal of Operations & Production Management, Vol. 23,
No. 10, pp.1142–1162.
126
Maniatopoulos, G. (2004), “Enacting E-Procurement technologies within UK local authorities”,
Proceedings of the IADIS International Conference e-Society 2004, IADIS Press, Vol. 2, pp.850–854.
43
the E-government Strategy Study 2004, of Government of Kenya (GOK) (2004)127, E-

Procurement was one in every of the medium term objectives which were speculated to be
enforced by Gregorian calendar month 2007, but the implementation method was terribly
slow.
Ho, C. et al., (2008) 128 found that Service Oriented Architecture enables protocol-free
distributed computing. This uniqueness make Service Oriented Architecture probably
appropriate for an efficient electronic procurement model for any concern. Service
Oriented Architecture –based approach to E-Procurement creates a consistent model for
technological considerations and it supports transparency in purchase activities. Service
Oriented Architecture helps in sharing the information on purchase that can facilitate
reduction in purchase price, and improve transparency in overall process.
Aderonke A. et al., (2010)129 said that there is a lack of uniformity and transparency in the
procurement process between the subsidiary and parent organization because of the
absence of proper communication. In this study, Service Oriented Architecture framework
for E-Procurement model is proposed for efficient electronic procurement. This framework
addresses the problem of heterogeneousness inter operability and dynamic necessities. The
study suggests that this model is competent for attaining transparency in procurement
management.
2.15 E-Procurement System / E- Procurement Methods
De Boer et al., (2002)130 have found that there are various sorts of E-Procurement systems
like electronic market, electronic Maintenance, Repair and Operations, electronic sourcing,
electronic tendering, electronic ordering and electronic exchange. Huang, X. & Welsh, R.,
(2002)131 found that the rapid development of web technology has made inter-organisation
127
Government of Kenya (GOK), (2004). Strategy Paper for IFMIS, National Government Printer.
128
Ho, C., Tai, Y., Wu, W. and Jou, J. (2008), “Exploring the impacts of web-based E-Procurement on
organizational performance”, Pacific Asia Conference on Information Systems (PACIS) 2008 Proceedings,
Paper 106.Retrieved from http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1194&context=pacis2008.
129
Aderonke A. Adesina, J. Olawande Daramola and Charles K. Ayo (2010), “A SOA-based framework for
E-Procurement in multi-organisations”, Int. J. Electronic Finance, Vol. 4, No. 2. Retrieved from
file:///D:/Downloads/Adesina%20et%20al.pdf
130
De Boer, L, Harink, J & Heijboer, G (2002), “A conceptual model for assessing the impact of electronic
procurement”, European Journal of Purchasing & Supply Management,8(1):25-33.
131
Huang, X. & Welsh, R. (2002), “Strategic Implementation of E-Procurement: A Case Study of an
Australian Firm”, the second international conference on electronic business, Taipei, Taiwan. Last retrieved
dated 02.02.2015 from
http://s3.amazonaws.com/academia.edu.documents/30813480/f139.pdf?AWSAccessKeyId=AKIAIWOWYY
44
property abundant, easier and cheaper than ever before, thereby providing a chance for
firms, both massive and little, to realise real value of the web. Despite the huge investment
and quality of implementing E-Procurement, there is little inquiry to produce for
developing effective procurement methods and for success of implementing E-
Procurement. This study tries to fill this gap by reporting of Australian case study on the
adoption of E-Procurement. The findings offer elaborate, varied and practical strategic
insights into critical factors, organisational redesign and challenges.
Matechak, J. P., (2002)132 identified three main phases of E-Procurement method that are
budget plan, procurement application, and finalising the contract and performance of
contract. .
Tonkin, C., (2003)133 said that E-Procurement system in any organization involves the use
of electronic ways in each stage of the buying beginning with method for the identification
of necessities to payment. There are three kinds of E-Procurement Systems and these are:
customer E-Procurement Systems, on-line Intermediaries E-Procurement Systems and
Seller E-Procurement Systems.
Cheung et al. (2004)134 executed the Agent-Oriented and Knowledge-Based System for
Strategic E-Procurement. The Agent-Oriented and Knowledge-Based System for Strategic
E-Procurement is based on a component-based design and was designed to capture the
knowledge of an enterprise agent technology. It also used the utilization of case-based
reasoning to get rules for effective procurement strategy. The e-Purchase model of Agent-
Oriented and Knowledge-Based System for Strategic E-Procurement is an initiative of the
Department for administrative and information Services, of South Australia Government –
Department of Communication Information and Humanities, 2004. It is an on-line E-
Procurement system with message routing and automatic progress capability.
Rai et al. (2006) 135 in their study have suggested four E-Procurement techniques/
methods. (1) Electronic Reverse Auctions (ERA) for deciding the supplier of the product,
(2) Electronic Catalogue Management (ECM)for placing the orders, (3) Electronic Order
GZ2Y53UL3A&Expires=1494419597&Signature=7SrkW5HaEew6XOZ5wzUSm3FNxWU%3D&response-
content-disposition=inline%3B%20filename%3DStrategic_Implementation_of_E-Procuremen.pdf .
132
Matechak, J.P. (2002), “Fighting Corruption in Public Procurement', Centre for International Private
Enterprise CIPE”, Feature Service Articles. Retrieved February, 1047–55.
133
Tonkin, C. (2003), “E-Procurement in the Public Sector: Story, Myth and Legend”, The Policy Institute,
Trinity College Dublin from https://www.tcd.ie/policy-institute/assets/pdf/PIWP07_Tonkin.pdf
134
Cheung, C.F., Wang, W.M., Victor, L.O. and Lee, W.B. (2004), “An agent-oriented and knowledge-based
system for strategic E-Procurement”, Expert Systems, Vol. 21, No. 1, pp.11–21.
135
Rai, A., Tang, X. Brown, P. and Keil, M. (2006) „Assimilation patterns in the use of electronic
procurement innovations: a cluster analyses, Information & Management, Vol. 43, No. 3, pp.336–349.
45
Fulfilments (EOF) for executing the orders, electronic payment and settlement
innovations (e- procurement system) for payment and settlement.
Kameshwaran et al. (2007)136 said that Electronic Procurement is a way to acquire goods
and services quickly and is found to be low cost option for a business. E-Procurement
includes various methods and techniques where the main goal is to procure goods in a
smarter way; where in management can concentrate on its revenue generation and
customer service.
Iqbal, M.S. & Seo, J.W (2008) 137 found that Government E-Procurement system of
Republic of Korean Peninsula is a web site for all public procurement. This website works
on the technology of Electronic Business Extended Markup Language documentation and
gives Business to Business capability for business. This website is connected to fifty three
external systems via web, for information sharing with various teams.
For information exchange they use Electronic documents and World Wide Web syndicate
suggested Extended Markup Language schema for such exchange of documents.
Lindskog, H. (2008)138 found that many governments have launched or planning to launch
E-Procurement systems collectively as their main electronic governance initiatives. Even
though, there is a progress but, the unification of the system into the government sector
undertakings has been found to be slow. In most of the government sector undertakings, E-
Procurement adoption process is same as adoption of IT system, which includes
organizational problems and external causes like lack of skilled personnel, IT-
infrastructure, standardization and legal problems.
Trkman, P. & McCormack, K., (2010) 139 found that in recent years, companies have
invested huge amounts in E-Procurement technology solutions. However, an estimation of
the price of the technology-enabled procurement method is commonly lacking. This study
presents a rigorous methodological approach to analysis of the E-Procurement benefits.
Business process simulations are used to find the advantage of technological and structural
changes associated with E-Procurement. The approach enables estimation of average and
variability of procurement prices and workload, benefits, and lead times. In addition, the
136
Kameshwaran, S., Narahari, Y., Rosa, C.H., Kulkarni, D.M. and Tew, J.D. (2007), “Multi attribute
electronic procurement using goal programming”, European Journal of Operational Research, Vol. 179, No.
2, pp.518–536.
137
Iqbal, M.S. & Seo, J.W. (2008), “E-governance as an anti corruption tool: Korean cases”, Journal of
Korean Regional Information Society, Vol. 11, No. 2, pp.51–78.
138
Lindskog, H. (2008), “E-Procurement of telecom services for the public sector”, International J.
Knowledge Management Studies, Vol. 2, No. 1, pp.17–28.
139
Trkman, P. & McCormack, K., (2010), “Estimating the Beneﬁts and Risks of Implementing E-
Procurement IEEE Transactions On Engineering Management”, Vol. 57, No. 2.
46
approach enables optimisation of a procurement strategy. Finally, an innovative approach

to estimation of price is shown.
Bulut, C. & Yen, B.P.C., (2013)140 provided a summary on the Hong Kong Government‟s
E- Procurement Pilot Project and denotes that Electronic procurement is less utilized in the
government undertakings, where the maximum enforced methods are e-tendering. The
finding reveals the rising trend of adoption of E-Procurement in public sector
undertakings. The case study suggests that the pilot project initiative is triple-crown by
way of political support, system adoption and suppliers. This study brings out the
electronic procurement initiatives in public sector.
2.16 Integrated Procurement Solutions
James et al., (2000)141 said that an ERP system is an integrated data system that manages
all aspects of the enterprise such as planning the production, designing the engineering
system, purchasing, distribution, marketing, accounts management and customer service.
Recent technologies that emerged will develop the ability of enterprise resource planning
in the areas of electronic commerce, electronic procurement, customer management,
logistics etc.
Government of Kenya (GoK), (2001)142 surveyed that in the public sector, many models
have been tried by completely different public entities to implement E-Procurement. These
are merchant Centric, buyer Centric, e-marketplaces or third-party managed models. The
Public Financial Reform Management (PFMR) Strategy Study 2001-2006 suggested
automation in addition to integration of key government functions like the, accounting,
human resources payroll, procurement and budgeting, citing transparency, better money
management and easier reportage as some of the advantages.
Panayiotou et al., (2004)143 found that electronic procurement solutions like preparation of
electronic market place (e-marketplaces) and electronic catalogues (e-catalogue) are used
by private sector and now it is way ahead of public sector. Even though both the sectors
140
Bulut, C & Yen, B.P.C., (2013), “E-Procurement in public sector: a global overview”, Electronic
Government, , Vol. 10 No. 2, pp. 189-210
141
James, D. and Wolf, M.L. (2000), “A second wind for ERP‟, McKinsey Quart”, Spring, No. 2, pp.100–
107.
142
Ogwang, M.& Abok, A., (2013), “Factors affecting effective implementation of E-Procurement in county
governments: a case study of kajiado county, Kenya, International Journal of Business & Law Research,
seahi publications, ISSN: 2360-8986, 1(1):94-109 from http://seahipaj.org/journals-ci/dec-
2013/IJBLR/full/IJBLR-D-7-2013.pdf .
143
Panayiotou, N.A., Gayialis, S.P. and Tatsiopoulos, I.P. (2004), “An E-Procurement system for
governmental purchasing”, International Journal of Production Economics, Vol. 90, No. 1, pp.79–102.
47
have common procurement goal of identifying the suppliers for providing quality of goods
and services at the affordable price, e- procurement solutions did not actually satisfy the
need of government sector units.
Thomas, P. & Alt, R., (2005)144 focused on the introduction of E-Procurement system and
its contribution to the management of indirect goods supply chain. This study is divided
into two part qualitative approach. The first part summarizes the results of a benchmarking
study which was conducted on a group of 12 multinational companies. During this period
120 questionnaires were distributed, ten telephonic interview were taken, and five best in
class companies were selected and analysed. In second part, best success factors identified
in benchmarking study and maps them against the best-in-class companies in terms of E-
Procurement practices. The study found that the many companies operate multiple E-
Procurement solutions. Study suggests that, for Integrated Procurement Solutions, it is
essential to have an overall procurement strategy and proper alignment of various E-
Procurement solutions along with the procurement process and integrated system
architectures to be used for E-Procurement. Researcher also suggests that, there is no
standardised E-Procurement solution.
145
Paul O et al, (2008) demonstrated that E-Procurement offers manufacturing
organization with efficient solutions to drive important value into their respective business,
the use of internet technologies to accommodate E-Procurement systems remains in a
formative stage yet. Previous research tends to focus on larger economies, so this paper
provides a new perspective by presenting evidence from the Irish Information and
Communication Technology (ICT) manufacturing industry. Research discussed the
benefits provided by use of E-Procurement in manufacturing firms. It also focused on the
challenges in adoption of E-Procurement. Significant benefits were reported, including
streamlined business processes and reduced business costs. Difficulties associated with
implementation are minimal, and are related to integration issues. Study concluded that
the integration of E-Procurement, organisations should develop a dual focus on technical
and people issues to instil a culture of staff development and continuous improvement.
144
Thomas, P. & Alt, R. (2005), "Successful use of e‐procurement in supply chains", Supply Chain
Management: An International Journal, from emerald Insight, Vol. 10 Iss: 2, pp.122 - 133
145
Paul O et al, (2008), “The development of E-Procurement within the ICT manufacturing Industry in
Ireland”, Management Decision, retrieved from Emerald Insight, Vol.46, Iss. 3, pp. 481 -500.
48
Hsin Hsin Chang & Kit Hong Wong., (2010) 146 found that IT has a major role in
accelerating the adoption of e-marketplace and E-Procurement participation in several
industries. The study analysed firm‟s motivations for adopting E-Procurement for their
operations in their marketplace and their performance were measured to assess its
advantage. Trust was considered as a moderating variable for the relationship between E-
Procurement adoption and e-marketplace participation. There are two-stage of analysis
which includes qualitative and quantitative approach. Hypotheses were formulated and a
model was constructed. A research form was developed and distributed followed by
information analysis and testing. The results indicate that firms that adopted E-
Procurement were more likely to gain by using the e-marketplace and that the company‟s
performance was improved after such participation. Trust was projected to have a
moderating effect to adopt E-Procurement.
Brandon-Jones, A. & Carey, S. (2011)147 examined the extent to which user perceived E-
Procurement Quality (EPQ) (Operationalized through the dimensions of professionalism,
processing, training, specification, content, and usability) influences both system and
contract compliance. Strong evidence was found of a positive relationship between user-
perceived EPQ and both system and contract compliance. System compliance was most
strongly influenced by professionalism and content dimensions, whilst contract compliance
was most strongly influenced by processing, specification, and content dimensions.
Ariba
Ariba is the world‟s leading Spend Management organization providing technology and
consulting services to reduce, control and manage enterprise wide spend and improve
profitability. Ariba is a NASDAQ listed, global organization working with more than 500
large corporate and Governments (including more than 50 of the fortune 100
organizations) in 22 countries. Integrated Ariba Spend Management solutions provide
world-class tools and technology for businesses to engage, manage, and leverage
Enterprise Spend Management (ESM) throughout the spend lifecycle.
Ariba Solutions Delivery can give the company a single point of connection to the
expertise required to leverage and extend their ESM successes. Only through Ariba Spend
146
Hsin Hsin Chang & Kit Hong Wong (2010), Adoption of e-procurement and participation of e-market
place on firm performance: Trust as a moderator, Information & Management 47 (2010) 262–270, retrieved
from https://pdfs.semanticscholar.org/2af7/4f1db4653270f15a871c830434b8f632d690.pdf.
147
Brandon-Jones, A & Carey, S. (2011)," The impact of user-perceived E-Procurement quality on system
and contract compliance", International Journal of Operations & Production Management, Vol. 31 Iss 3 pp.
274 – 296. Last retrieved dated 07.07.2015 from Emerald Insight.
49
Management can companies fully integrate their analysis, sourcing, and procurement
processes with any legacy system into a cohesive solution that works backwards and
forwards across the enterprise. Buyers and suppliers are empowered to transact globally in
a participative way that delivers true value.
Purchasing Card
Purchasing cards is the payment vehicle for low value transactions. The main benefit of the
purchasing card are the speed and convenience for the end user, reductions in the cost and
time associated with purchasing related activities, and the ease of use to acquire goods over
the Internet. The purchasing card was developed to streamline the traditional purchase
order and payment process and cut the cost and time of acquiring routine goods and
services. These purchases are typically described as MRO, (maintenance, repairs and
operational expenses).
Busch, J., (2012) 148 stated the most common four types of E-Procurement system
integration namely.
 The first and most common is integration into core Enterprise Resource Planning
(ERP) / Material Requirement Planning (MRP), which forms the connectivity
between front line buying and procurement activity and Information Technology
(IT) /Finance system. Today many organizations are highly dependent on the ERP
and Business application package which they try to integrate with.
 The second is focused on various toolsets of Procurement related integrations
which includes Vendor Management System (VMS), Software Monitoring/
Metering/ Licensing applications, electronic invoicing automation tools, Contract
Management system and Supplier Management Applications.
 Third is more generalized business application beyond the procurement which is
similar across the Industry. It includes Customer Relation Management (CRM).
Human Resources Management (HRM), Inventory Management, Warehouse
Management, Assets Management, Claim / Warranty and related toolsets.
 The fourth is Industry specific, such as retail, Point of Sale System, Contract
Management etc
148
Busch, J. (2012), “Procurement Systems Integration Within the Enterprise: Exploring Integration in the
Cloud” , last retrieved dated 23.04.2014 from www.spend matters.com or
http://www.coupa.com/images/resources/downloads/spendmatters_integration.pdf
50
2.16.1 Impact of Size of the Firm on the Adoption of E-Procurement Applications
Dawn, H. P. & Giunipero, L. C., (2008)149 empirically investigated the role of firm size in
the adoption of E-Procurement applications that vary with respect to their ability to
facilitate supply chain integration. The research question was: “Is there a significant
relationship between firm size and the type (more or less integrative) of E-Procurement
application adopted?” Study focussed on the impact of firm size on the adoption of E-
Procurement applications that vary in the ability to facilitate supply chain integration. This
study contributed to the understanding of the adoption of a wide range of E-Procurement
applications by examining the role of firm size. This research provides support for studies
that suggest that firm size is related to Information Technology (IT) use. This study
examined actual usage of thirteen different E-Procurement applications across various
industries. Finally, this research focused on the use of E-Procurement in achieving
integration. The outcome of this research suggested that the firms in category II (with
revenues less than $3.5 billion) are not as likely to use integrative E-Procurement
applications as firms in category I (annual revenues exceeding $3.5 billion).
2.17 E-Procurement Tool
E procurement systems consist of a number of different tools. These include automation of

internal ordering processes, online catalogues from approved vendors, and an electronic
Request for Proposal (e-RFP) process that leverages online auctions (e-auctions) to
accumulate bids on providing goods and services for a specific project. The choice of
which document to use: RFI RFP RFQ for which type of sourcing project depends on the
desired outcome, a firm proposal or a detailed price bid that is needed150.
 A Request for Information (RFI) is a method of collating information from
different suppliers prior to formally sourcing products or services. It is normally
used where there are many potential suppliers and not enough information is known
about them. It is a structured process where a long list of potential suppliers can be
reduced to a short list of those organizations that are willing and able to fulfil your
requirements.
149
Dawn, H. P. & Giunipero, L. C. (2008),"Using E-Procurement applications to achieve integration: what
role does firm size play?” Supply Chain Management: An International Journal, Vol. 13 Iss 1 pp. 26 – 34 last
retrieved dated 07.07.2015 from Emerald Insight.
150
E Procurement - Challenges and Opportunities, http://www.purchasing-procurement-center.com/e-
procurement.html
51
 A Request for Proposal (RFP) is a formal method of receiving detailed and

comparable proposals from different suppliers for a defined product or service. It is
a comprehensive document that should provide all the required information needed
to make an informed purchasing decision.
 A Request for Quotation (RFQ) is a competitive bid document used when inviting
suppliers and subcontractors to submit a bid on projects or products. An RFQ is
suitable for sourcing products that are standardized or produced in repetitive
quantities. A technical specification must be provided as well as commercial
requirements. Sometimes an RFQ can be preceded by an RFP where the shortlisted
suppliers are requested to provide a more detailed price quote. The RFI, the RFP
and the RFQ are all tools that can be used separately or in combination to achieve a
successful sourcing solution.
Knudsen, D., (2003)151 presented a framework for assessing alignment between corporate
strategies, procurement strategies and purchasing E-Procurement tools. This framework
was based on three types of rents: Monopoly rents, Ricaedian rents and entrepreneurial
rents. The framework is then used for assessing the strategic origin of the E-Procurements
such as e-sourcing, e-tendering, e-informing, e-reversed auctions, e-MRO, web based
enterprise resources planning and e-collaboration. The results indicate that the E-
Procurement tools are fully viable for creating monopoly rents, moderately viable for
creating Ricardian rents and only somewhat viable for creating entrepreneurial rents. (The
concept of rent is commonly used in the strategy literature, and the knowledge base
involved in the concept is well established. By using the rent- concept in the field of
procurement, it ought to be possible to explain and show, how procurement can have a
truly strategic importance not only for E-Procurement applications, but also for other
procurement-related issues as well.)
Schoenherr, T. & Tummala, V.M.R., (2007) 152 suggested that E-Procurement is a
subsection of electronic commerce, that is interlinked with tools like electronic marketing,
electronic selling, electronic distribution, electronic servicing and enterprise resources
planning (ERP). Due to the new generation mobile devices and the internet, e-commerce
is reborn into m-commerce.
151
Knudsen, D., (2003),"Aligning corporate strategy, procurement strategy and E-Procurement tools",
International Journal of Physical Distribution & Logistics Management, Vol. 33 Iss 8 pp. 720 – 734 last
152
Schoenherr, T. & Tummala, V.M.R., (2007), “Electronic procurement: a structured literature review and
directions for future research”, International Journal Procurement Management, Vol.1, Nos. 1/2, pp.8–37.
52
Sanyal, M.K & Guha, A., (2010)153 found that Electronic procurement has been used as a
means to considerably scale back prices, as it enables volume purchases, allows wider
selection of patrons and suppliers, brings about higher quality, improves delivery,
minimise study work, and lowers administrative prices. Earlier, inter organisational info
systems like Electronic Data Interchange were introduced; electronic markets emerged for
business purchasing. In view of the advancement of data Technology, business
organizations are using the web technology for transferring information between them.
This process ultimately leads to web based, mostly, E-Procurement systems and business
to business electronic markets. The rise within the popularity of web and therefore the fast
unfold of electronic procurement across the planet markets, each and every company is
currently alert to the system. In developed countries, organisations are using this facility
from the beginning. Indian industries as well as Government sectors are attempting to
adopt the new technological wonder. The study discussed about the initiatives of E-
Procurement system in Indian trade. Present case study highlighted the initiatives of the E-
Procurement platform across many government departments and public sector units in
India. The secondary data were utilised for the case studies and solely Indian industries
were studied and analyzed. The general findings indicated a positive attitude among the
industries in adopting the E-Procurement system.
Kakwezi, D & Nyeko, P. K., (2010)154 found that the procurement departments of public
entities in Uganda were two-faced with the downside of not having enough information
regarding the procurement procedure, its inputs, outputs, resource consumption and
outcomes, and it was unable to verify their potency and effectiveness. This result in tangle
required institution of clear procurement tips, procedures and performance standards.
P. Sabari Raghavendran et al., (2012) 155 were of the opinion that an E-Procurement
avoids wide use of papers and printing, and that‟s why it was considered as Green
Purchasing. This study attempted to bring out the impact of necessary factors like
perception, size of the company and buying scenario on adopting E-Procurement in Indian
153
Sanyal, M.K & Guha, A., (2010), “E-Procurement Initiative in Indian Industry: A Case Study”, Global
Vistas, Volume-9, pp 1-40.
154
Kakwezi, D. & Nyeko, P. K. (2010), “Procurement Processes and Performance: Efficiency and
Effectiveness of the Procurement Function”, www.researchgate.net or
http://www.ippa.org/IPPC4/Proceedings/14ProcurementProfession/Paper14-2.pdf
155
P. Sabari Raghavendran, M.J Xavier and D Israel (2012), “Green Purchasing Practices: A study of E-
Procurement in B2B Buying in Indian Small and Medium Enterprises”, Journal of Supply Chain and
Operations Management, Volume 10, Number 1.Retrieved from
http://www.procurementobservatoryraj.in/Phase-I/pdf/Green_Purchasing_Practices_A_study_of_e-
procurement.pdf
53
producing SMEs. Since E-Procurement use electronic media and also avoids extensive use
of printing, this falls under the scope of inexperienced buying. The outcome showed that
perception, size of the company and buying scenario didn‟t impact the adoption of E-
Procurement among the tiny and medium enterprises in India. Though they used email to
communicate with the suppliers, they preferred older modes of procurement when it comes
to actual procurement. Procurement was characterised by a sturdy personalised relationship
between the client and supplier. Consequently, online procurement had not taken roots
among the smaller companies in the manufacturing sector in India.
2.18 Impact of E-Procurement on Organizational Performance
2.18.1 Impact of E-Procurement on Organizational Performance
Ellram L. M & Pearson, J. N., (1993)156 described the procurement activities conducive to
the total value of possession including: delivery, management, service, communications,
price and quality. They show the Total Cost of Ownership (TCO) approach in procurement
that may give associate improvement in procurement and firm performance. The main
philosophy of TCO was to identify all activities that make companies to incur cost and to
determine those activities which add price. It was some kind of lean producing in the sense
that the ultimate objective was to eliminate waste and focus solely on those activities that
add final price.
The study by Phillips, P & Wojciech, P., (2006) 157 was based on the interdisciplinary
literature review which included strategic alternatives, various profiles and salient factors
of e- Procurement. The purpose of this study was to identify important factors of adoption
of E-Procurement. Further, it is classified as strategic and tactical E-Procurement
perspectives. This study identified the several important factors in adopting strategic E-
Procurement perspectives. The study projected a framework which can be used for
assessing the E-Procurement and also to explain the impact of E-Procurement on
organizational performance. This research also explained that the alignments of Business
Strategy, E-Procurement strategy, E-Procurement tool, Strategic Information Technology
capabilities have positive influence on a company‟s strategic performance.
156
Ellram, L. M & Pearson, J. N. (1993). “The role of purchasing function: Toward team participation.”
International Journal of Purchasing & Materials Management, 3(29), pp. 2– 9.
157
Phillips, P & Wojciech, P., (2006), “E-Procurement: How does it enhance strategic performance?” Kent
Business School, University of Kent, Canterbury, UK last retrieved dated 24.04.2013 from Working Paper
No.113 (https://kar.kent.ac.uk/10316/1/Web_Version.pdf ).
54
Lakshmi, P & Visalakshmi, S., (2013)158 found that the utilization of web for business
transactions had advanced considerably. The penetration of the telecommunication
network had been a foremost causative issue. Advances in telecommunications and
computing occurred frequently before and was currently flocked on the web. Electronic
commerce was used by the firm to enter into new markets that can be otherwise excluded,
due to geography, price and other problems. Firm depends on electronic commerce to
extend their merchandise to novel sets of shoppers and novel elements of the world. The
web facilitates an organization to release a brand new product into the market, get
instantaneous client reaction, enhance and impeccable it, without incurring huge capital
investment in the physical distribution infrastructure or getting a shelf housed at
distributor‟s end or to have a distributor. Electronic procurement has been widely accepted
even by governments seeking body potency and value reduction techniques that were
originally intimate within the non-public sector. The purpose of this study was to grasp the
E-Procurement practice and its usage in Government organizations. Three Case studies
from the government organizations from India and U.S.A. were clearly studied and
analyzed. The outcome revealed that value of profit was the main driver for these
organizations to execute E-Procurement.
Oyuke, H.O & Shale, N., (2014)159: The purpose of this study is to analyse the role of
strategic procurement practices on firm‟s performance by taking the case study of National
Audit office of Kenya. The researcher collected primary and secondary data throughout the
research. Primary data was collected with the help of a form containing the details of
strategic role of procurement in firm‟s performance. Quantitative data was analyzed with
the help of SPSS. Taking the recent and projected expenditures in procurement, the
increasing importance of the procuring function towards the firm‟s profitability, various
procurement practices that contribute to the achievement of goals of the company are
analysed in this study.
158
Lakshmi, P & Visalakshmi, S., (2013), “E-Procurement Praxis in Government Organizations”, ISSN:
1694-2108 | Vol. 2, No. 1.
159
Oyuke,H.O & Shale,N., (2014), “Role of Strategic Procurement Practices on Organizational Performance”;
A Case Study of Kenya National Audit Office European Journal of Business Management, Vol. 2, Issue 1,
2014 http://www.ejobm.org ISSN 2307-6305.
55
160
Geoffrey Kipngeno Rotich (2015) found that in developing countries, public
procurement has remained an interesting topic. Public procurement is characterized with
problem of transparency and irresponsibleness. Electronic procurement is the emerging
trends in procurement. This study examines the impact of electronic procurement and E-
Procurement performance in government organization in republic of Kenya. Information
was collected in Government organizations in Republic of Kenya. A sample of one
hundred twenty workers operating in procurement, accounts and IT departments of
Republic of Kenya was selected. Structured queries were used to collect data. The
outcomes revealed that electronic procurement is absolutely connected with performance
in Government organizations in Republic of Kenya. The study concludes that the
Government should take steps for e- procurement adoption and supply essential resources.
2.18.2 Impact of E-Procurement on Supply Chain Performance
Hsin, H. C. et al., (2013)161: The study focuses on the relationship between E-Procurement
and supply chain performance. The empirical study indicated that information sharing and
supply chain integration is two important factors. From the study, it has been found that E-
Procurement systems can facilitate the information flow and activity coordination among
supply chain partners. Further, the paper found that partner relationships, information
sharing, and supply chain integration can represent the processes through which E-
Procurement contributes to supply chain performance. Supply chain integration has the
highest standardized total effect on supply chain performance.
Sundarraj, R.P & Kumari, K., (2013)162 found that Electronic Procurement Systems has
been a potential technological system for achieving a responsive supply chain, and thereby,
gaining a competitive benefit in today‟s global marketplace. A range of empirical studies
have targeted on the adoption of E-Procurement system in numerous countries. However,
no research work associated with adoption of E-Procurement system has been carried
in India. The study also discussed the potential benefits of E-Procurement system in
160
Geoffrey Kipngeno Rotich (2015), “Analysis of Use of E-Procurement on Performance of the
Procurement Functions of County Governments in Kenya”, International Journal of Economics, Commerce
and Management, United Kingdom Vol. III, Issue 6, June 2015, http:/ /ijecm.co.uk / , ISSN 2348 0386
161
Hsin, H. C. et al., (2013),"E-Procurement and supply chain performance", Supply Chain Management: An
International Journal, Vol. 18 Iss 1 pp. 34 – 51, last retrieved dated 07.07.2015 from Emerald Insight.
162
Sundarraj, R.P & Kumari, K., (2013), “Electronic Procurement Systems in India: Importance and Impact
on Supply Chain Operations”, Springer Science Business Media New York. Last retrieved from
file:///D:/Downloads/9781441961310-c2.pdf.
56
Indian companies. The study conducted an empirical survey, as well as three case-studies
concerning the importance and effect of E-Procurement system adoption in India.
2.18.3 Impact of E-Procurement on Corruption Practices
Ndou, V., (2004)163 found that E-Procurement completely eliminates human involvement
in bidding, thereby reducing the corruption and improving the effectiveness in public
sector units. Dobson, J. et al., (2005) 164 found that the existing procurement models
presented in multi-organization are a mixture of divisions and various
departments, branches at different locations, and presence of subsidiaries, where there was
some degree of independence from the parent organization. Sohail, M & Cavill, S.,
(2008)165 indicated that E-Procurement improves the transparency and integrity in public
service like tendering, sourcing, ordering, and auctioning. E-Procurement has been
accepted as internationally vital instrument for checking the incidence of corruption and
misuse of power. Basheka, B.C and Bisangabasaija, E., (2010) 166 found that E-
Procurement was used to counter the incidence of corruption in underdeveloped countries
where the corruption rate is high.
E. Osei-Tutu E. Badu D. Owusu-Manu, (2010)167: The main objective of this research
was to explore the corrupt practices in public procurement of Infrastructural Projects in
Ghana. The paper also aimed to identify the corruption related challenges. Researcher have
observed corrupt practices such as bribe, kickbacks, Conflict of interest, embezzlement,
manipulation of tender, fraud etc, in delivery system of Infrastructural Project. Sound
procurement systems required controlling corruption practices, which have benefits such as
Good Governance, Transparency and Accountability etc. The paper also suggested a few
business approaches to combat corrupt practices in Ghana.
163
Ndou, V (2004), 'E-government for developing countries: opportunities and challenges', The Electronic
Journal of Information Systems in Developing Countries, 18 (1):1-24.
164
Dobson, J., Lock, S. and Martin, D. (2005), “Complexities of multi-organisational error management”,
Proceedings of the 2nd Workshop on Complexity in Design and Engineering, Glasgow, pp.110–119.
165
Sohail, M & Cavill, S (2008), 'Accountability to prevent corruption in construction projects', Journal of
Construction Engineering and Management, 134 (9): 729-38.
166
Basheka, B.C. and Bisangabasaija, E. (2010) „Determinants of unethical public procurement in local
government systems of Uganda: a case study‟, Int. J. Procurement Management, Vol. 3, No. 1, pp.91–104.
167
E. Osei-Tutu E. Badu D. Owusu-Manu, (2010),"Exploring corruption practices in public procurement of
infrastructural projects in Ghana", International Journal of Managing Projects in Business, Vol. 3 Iss 2 pp.
236 – 256 last retrieved dated 08.07.2015 from Emerald Insight.
57
Neupane, A. et al., (2014) 168identified anti corruption attributes through literature review.
They have developed a theoretical model representing the impact of four latent variables,
namely, Monopoly of power, Information asymmetry, Trust and Transparency, and
Accountability (as dependent variables) on the Intent to adopt E-Procurement (ITA), as
independent variable. The result of the study suggested that intent to adopt E-Procurement
(ITA) has positive and significant relationship with the dependent variables.
Elezi, E & Harizaj, M.,(2012)169 found that E-Procurement enables the execution of the
anti-corruption policies that is why the Albania Government has launched the web based
public E-Procurement system for electronic management of the public procurement
process. With this, the Albania became the first country in the world, which has introduced
the 100 % E-Procurement system for all public sector tenders above 3500 Euro in 2009.
Even though, the Albania faced the corruption problems. The objective of this study was to
critically analyse the efficiency of the Albanian E-Procurement System with reference to
reduction of corruption in the public procurement practices. Based on the research, E-
Procurement system adopted by Albanian Government is a significant accomplishment in
the direction of the fight against corruption. Still, the Government should not consider the
E-Procurement as a finished project. The needs evidenced and the feedback from the data
research provided supportive insights for the essential improvements. The efficiency focus
of the procurement process and the technical and organisational needs evidenced in the
proceeding can be mapped through the Value Chain Model. The adoption of value chain
model in the case of the Albanian public E-Procurement case matched the needs with the
goals.
2.18.4 Impact of Electronic Procurement Technologies on Procurement Practices and

Procurement Performance.
170
Quesada, G. al., (2010) investigated the impact of Electronic Procurement
Technologies on Procurement Practices and Procurement performance. This paper
168
Neupane, A., Soar, J., Vaidya, K. & Yong, J., (2014),"Willingness to adopt E-Procurement to reduce
corruption", Transforming Government: People, Process and Policy, Vol. 8 Iss 4 pp. 500 – 520 last retrieved
dated 08.07.2015 from Emerald Insight.
169
Elezi, E & Harizaj, M. (2012), “Efficiency evaluation of the public E-Procurement System in the
reduction of corruption: the Albanian Case” last retrieved dated 06.06.2013 from
https://www.scribd.com/document/152248751/Elezi-Harizaj
170
Quesada, G., González, M.E., Mueller, J. & Mueller, R. (2010),"Impact of E-Procurement on procurement
practices and performance", Benchmarking: An International Journal, Vol. 17, Iss. 4, pp. 516 – 538 last
58
presented a model of the relationship between E-Procurement technology usage,

procurement practices and procurement performance. The model is tested and validated
using a sample of 368 Procurement Specialists in the USA. The outcomes of this research
propose that E-Procurement technologies usage positively affects managers‟ perceptions of
both procurement practices and procurement performance.
Gupta, M & Narain, R., (2012) 171 conducted study in 36 organizations in India
to measure the electronic procurement impact and practices in these organizations. The
study discovered that the deployment of IT will be useful in improving the internal process
like higher internal control, cost reduction and enhanced client service. The study also
indicated the areas to be studied and their incompatibility and security issues. Three
important factors need to be concentrated for trust building on E-Procurement practices
and they are: Internet security issues, Information sharing issues, and Legal issues.
Minkyun, K et al., (2015)172 investigated the significance of difference among the strategic
sourcing, E-Procurement and performance of the firm. The study found a positive impact
of strategic sourcing and E-Procurement on firm performance.
2.19 Development of Research Model or Conceptual Model
2.19.1 Integrated Research Model to Predict and Understand an Intention to Use E-

Procurement Technology
Mohamed, G. A. (2010)173 carried out a research with the goal to establish an integrated
research model to predict and understand intention to use E-Procurement technology. The
model used in this research was Technology Acceptance Model (TAM) and Theory of
Planned Behaviour (TPB) to investigate both technical and social aspect of E-Procurement
technology. The result of the research shown that, the behavioural intention toward E-
Procurement technology was determined by user‟s attitude; perceived usefulness and
subjective norm (SN). Overall, the results showed that the proposed model has good
171
Gupta M and Narain R (2012), “A study on usage of IT and its implications on E-Procurement in Indian
organization”, International Journal of Business Information Systems, Vol. 10, No. 2, , pg 222 – 244.
172
Minkyun K, Nallan C. S., Canan Kocabasoglu-Hillmer, (2015),"A contextual analysis of the impact of
strategic sourcing and E-Procurement on performance", Journal of Business & Industrial Marketing, Vol. 30
Iss 1 pp. 1 – 16 last retrieved dated 08.07.2015 from Emerald Insight.
173
Mohamed, G. A., (2010),"Predicting E-Procurement adoption in a developing country", Industrial
Management & Data Systems, Vol. 110 Iss 3 pp. 392 – 414 last retrieved dated 08.07.2015 from Emerald
Insight.
59
explanatory power and confirms its robustness, with a reasonably strong empirical support,
in predicting users‟ intentions to use E-Procurement technology.
2.19.2 Conceptual Framework - When and How Benchmarking Applies To

Technology Adoption
Cammish, R & Keough, M., (1991)174 explained a development model for procurement in
four stages: Lowest unit cost, Procurement mandatory support, Coordinated procurement
effort and Strategic procurement. They suggested that shift from operating procurement to
strategic procurement should be done with the help of electronic procurement.
Azadegan, A & Teich, J., (2010)175 explained when and how benchmarking applies to
technology adoption by a new conceptual framework. The study suggested three main
adoptions theories that explain Innovation adoption. Researcher have categorised factors
into four groups which helped to find when and how benchmarking applies to technology
adoption by noted three theories. These factors are: (1) Technology Factor: The nature,
purpose, scope, and benefits of each technology can make it suitable for different
applications (2) Organizational factor: the Adopting firm (3) Trading Partner Factor and
(4) Network Factor: The firm within which it operates.
2.19.3 Model of Electronic Procurement Adoption Behaviour by Small- To Medium-

Sized Enterprises
Joyce, K. et al., (2003)176: The target of this research was to check a model of electronic
procurement adoption behaviour by Small- to Medium-sized Enterprises. The study
examined the development perspective of buyer-seller relationship and argue that, trust on
supplier, cost of E-Procurement adoption, trust on IT, and power of suppliers are factors
leading to SME‟s adoption behaviour. Research analysis from the four case studies gives
proof that the former four factors have vital impact on SME‟s E-Procurement adoption
174
Cammish, R., & Keough, M. (1991). “A strategic role for purchasing”, The McKinsey Quarterly, (3), pp.
22-40.
175
Azadegan, A & Teich, J., (2010),"Effective benchmarking of innovation adoptions”, Benchmarking: An
International Journal, Vol. 17 Iss 4 pp. 472 – 490 last retrieved dated 08.07.2015 from Emerald Insight.
176
Joyce K. Chan, Y., Mattew K., Lee, O (2003), “SME E-Procurement Adoption in Hong Kong - The Roles
of Power, Trust and Value”, Proceedings of the 36th Hawaii International Conference on System Sciences.
Retrieved from https://www.researchgate.net/publication/261239497_SME_E-
Procurement_Adoption_in_Hong_Kong_-_The_Roles_of_Power_Trust_and_Value
60
behaviour. This study provides a better understanding of how and why SME in Hong
Kong use E-Procurement. Practical and theoretical implications are conjointly provided.
Table 2.1 shown Comparative study of major articles/ research papers/ thesis/ books
included in the chapter.
TABLE 2.1: Comparative study of major articles/ research papers/ thesis/ books
included in the chapter
Author
Sr No
Research gap / Research

Year
Research Methodology Key Findings

Purpose
The previous studies have

not sufficiently
The data was collected
investigated the others
through questionnaire Stated that E-Procurement is the
perspectives of E-
from 40 professional recent reform that is adopted by the
Procurement such as
from the six states of Government of Kenya to boost
transactional,
Australia. Since the time public procurement. Adoption of
Kishor Vaidya
organizational, and
of research was early electronic procurement may bring
environmental. Hence, the
2005
stages of E-Procurement, sanity within the procurement

1
purpose of this study is to

only Public Sector policies, reduce prices and improve
examine the intensity of E-
agency which have potency. The target of E-
Procurement adaptation
implemented or begin to Procurement adoption include:
from the Transactional,
implement E- improved accountability, improve
Environmental,
Procurement were effectiveness and transparency.
Technology and
chosen for the study.
Organizational point of
view.
E-Procurement enables the E-Procurement system adopted by
execution of the anti- The questionnaire of the Albanian Government is a significant
ELEZI Ermal and HARIZAJ Miranda PhD Student
corruption policies that is survey was built upon accomplishment in the direction of
why the Albania the key transparency the fight against corruption. Still, the
Government has launched factors such as sector of Government should not consider the
the web based public E- activity, company size, E-Procurement as a finished project.
Procurement system for capacity, training, The needs evidenced and the
electronic management of information quality, feedback from the data research
the public procurement traceability, efficiency, provides supportive insights for the
2012
process. Even though, the security, data protection, essential improvements. The
2
Albania faced the collaboration efficiency focus of the procurement

corruption problems. The and communication were process and the technical and
objective of this study is to transformed in questions organisational needs evidenced in the
critically analyse the as a method of scrutiny. proceeding can be mapped through
efficiency of the Albanian On the other side the the Value Chain Model. The
E-Procurement System Qualitative research have adoption of value chain model in the
with reference to reduction been used to measure case of the Albanian public E-
of corruption in the public organizational behaviour. Procurement case matches the needs
procurement practices. with the goals.
61
This study have identified related

variables for each Critical Success
Kishor Vaidya, A. S. M. Sajeev and Guy Callender

The study has more of a
Factors (CSFs) and presented a
Conceptual approach to
model of the Critical Success Factors
adoption of an Innovation,
(CSFs), which were expected to
hence does not throw any
impact the achievement of E-
light on the specific The researchers have
Procurement initiatives in the public
technical description of examined the various
sector. This paper identifies eleven
these e- Procurement tools. literature related to e-
aspects during the survey of E-
2006
The essential problem Procurement initiative in

3
Procurement Literature. Study found

motivating this study is to order to investigate the
that e -Procurement has a better
understand the Critical Critical Success Factors
reach and scope than traditional
Success Factors (CSFs) for e- Procurement.
Procurement. Key differences in the
underlying the
approach to the development of e-
implementation of E-
Procurement projects were also
Procurement initiatives in
noted during the study. Interestingly,
the public sector.
the legal and legislative issues did
not emerge as CSFs.
The exploratory research
Simon R. Croom and Alistair Brandon-
used for some inductive

analysis has been used
for this research. Data The study explored five major
The aim of this research
were collected through themes which were derived from
is to contribute to the
Semi Structured and available literature. Seven key
existing literature by
Jones
Open ended questions. lessons learned from E-Procurement

2005
exploring the perceptions

4
The participants implementation across a range of UK

and reflections of both
consisted of adopters of public sector organisations. This
„early‟ and „late‟ adopters
E-Procurement which study also stated the procurement
of E-Procurement.
include seven central steps.
government departments,
six local authorities and
two agencies.
The aim of the paper is to
The outcome found that perception,
find the impact of Data were collected
size of the company and buying
significant factors such as through structured
scenario doesn‟t impact the adoption
R.P Sabari, M.J Xavier and D. Israel
perception, size of the questionnaire from

of E-Procurement among the tiny
company and buying Managers in Operations /
and medium enterprises in India.
situation on adopting E- Supply chain
Though they tend to use email to
Procurement in SMEs in Management function of
communicate with the suppliers, they
2012- 13
India. The paper focus on Small and Medium scale

prefer older modes of procurement
Green purchasing with companies from 112
5
when it comes to actual procurement.

specific reference to Manufacturing industry
Procurement is characterised by a
Purchasing methods of Chennai in south
sturdy personalised relationship
essentially to eliminate India. A convenient
between the client and supplier.
paper usage, time delay sampling was used.
Consequently, online procurement
with other advantages like Study used response
has not taken roots among the
global connect with from single respondent
smaller companies in the
suppliers, and seamless from each organization.
manufacturing sector in India.
flow of information.
62
The previous studies on E-

Data collected from 134 Organizations were found in their
Procurement have focused
respondents through beginning phase of E-Procurement
on investigating the
questionnaire which is use. In adoption of E-Procurement,
benefits or adoption in
comprised of three the Organizational, Technological
manufacturing, a very rare
sections. First, data and Environmental factor play a
Marianna Sigala
study found on Service.
regarding firms‟ use of crucial role. Study found that the
This study aims to fill this
E-Procurement systems, firms which perceived E-
2005
gap by exploring the

6
second, data regarding Procurement as advantageous, non-

potential E-Procurement
firms‟ perceptions complex, friendly and risk free were
adoption factors by
regarding E- more likely to adopt E-Procurement.
reviewing literature and
Procurement, last, data Findings also revealed that
testing the latter‟s impact
about the size, type and organizations with knowledge and
by gathering data from
management skills on E-Procurement are more
Greek food service
arrangement. likely to adopt it.
operators.
The purpose of United Provide overview of the UN
Nation Procurement Authors consider it a procurement cycle, including certain
practitioner‟s Handbook is descriptive synopsis of transverse themes like risk
to serve as reference good practices within the management, sustainable and E-
United Nations
material for the Common UN system rather than a Procurement, logistics, and ethics. It
2006
Procurement Certification prescriptive document also used as basis for development of

7
Scheme for the UN. The such as the Common training material for further
idea is to provide a broader Guidelines or existing development of UN procurement
picture of the different UN procurement reform, for further development of
ways of doing procurement manuals. UN Common Guidelines to adopt
within the UN system. good practices in procurement.
The research was
conducted to
Study helped Enterprises that have
discover the key tactics
Aberdeen Group, Inc.
The purpose of the study is not deployed E-Procurement. The

and strategy for
to help enterprises that study found benefits of the effective
successful
have not deployed E- implementation of E-Procurement.
2005
implementation of E-
8
Procurement, especially Use of an E-Procurement system has

Procurement. E-
mid-market and small freed supply management and other
Procurement
firms. personnel to focus on creating value
implementations from 25
for the enterprise.
Companies were
examined by researchers.
The researcher has
blindly evaluated the e- A number of key findings emerged
procurement from the report. Aberdeen‟s research
Aberdeen Group, Inc. Boston,
This report is intended to implementations from found that the most successful E-
recognize those enterprises more than 50 companies Procurement deployments had the
December, 2001
Massachusetts
that have demonstrated based on the multiple ten common characteristics. The
industry best practices in metrics, including usage, report also helped procurement
9
deployment of Internet- spending volume, executives, corporate executives, and

based procurement process efficiencies, and business and IT managers in
Automation. cost savings. The report identifying best practices for
included in-depth case selecting, deploying, and managing
studies of eighteen best deployment of E-Procurement
E-Procurement technologies.
Implementations.
63
This is the fifth in a series Based on the research, Aberdeen
Aberdeen Group, Inc.

of Aberdeen benchmark The report studied the recommended various strategies for
October 2007
studies, which have been use of E-Procurement improved results. This report also
conducted since 1998, solutions of more than identifies the practices employed by
10
focusing on E - 622 organizations Best- in - Class enterprises to

Procurement performance belonging to various maximize spend under control and
and examining the goals, industries. optimize the value of their E-
hurdles, strategies. Procurement initiative.
This study used
qualitative approach. It is
divided into two parts. In
The study found that the many
the first, the study was
companies operate multiple E-
conducted on a group of
Procurement solutions. Study
Thomas Puschmann, Rainer Alt
12 multinational
suggested that, for Integrated
companies, 120
The aim of this research is Procurement Solutions, it was
questionnaires were
to explore the E- essential to have an overall
distributed, ten
Procurement systems and procurement strategy and proper
2005
11
telephonic interviews
their contribution to the alignment of various E-Procurement
were taken, and five best
management of indirect solutions along with the procurement
in class companies were
goods. process and integrated system
selected and analysed. In
architectures to be used for E-
second part, best success
Procurement. Researcher also
factors identified and
suggested that, there was no
maps them against the
standardised E-Procurement solution.
best-in-class companies
in terms of E-
Procurement practices.
The procurement procedures in this
The purpose of this manual
manual are available for all approved
NZ Transport Agency‟s Procurement
is to provide guidance and

organizations for use. The manual
processes to assist those
contains Legislative and policy
organizations which are
framework, Roles of the NZ
approved by Land
Transport Agency and approved
Transport Management
manual
organisations, Strategic approach to

2011
12
Act 2003(LTMA) to get

procurement, Procurement
the best value for money
procedures, Monitoring and auditing,
spent, to provide a basic
Guidelines on procurement
description of procurement
procedures and Supplier selection
and procurement process
methods. The manual refers to
for land transport
approved organisations and the same
activities.
rules apply to the NZTA.
64
The research studied

interdisciplinary
Identified the several important
Paul Phillips, Wojciech Piotrowicz

literature review which
factors in adopting strategic E-
includes strategic
The purpose of this study Procurement perspectives. The study
alternatives, various
is to identify important projected a framework which can be
profiles and salient
factors of adoption of E- used for assessing the E-Procurement
factors of e-
2006
13
Procurement. Further, it is and also to explain the impact of E-

Procurement. Four
classified as strategic and Procurement on organizational
hypotheses were framed
tactical E-Procurement performance. This research also
to present how E-
perspectives. explained that the alignments of
Procurement
Business Strategy, E-Procurement
arrangement can lead to
strategy, E-Procurement tool.
improved levels of
effectiveness.
The purpose of this Data collected from 185
Rebecca Angeles Ravi Nath
research is to seek to organizations, members Identified three important challenges

pursue the understanding of the Institute for in implementing an E-Procurement.
of current Business-to- Supply Management and Using factor analysis, this study has
Business E-Procurement the Council of Logistics reduced a total of 12 variables into 3
2007
14
practices by describing the Management, through success factors and 13 variables into
success factors and questionnaire. Factor 3 challenges to implementation
challenges to its analysis was used to factors for E-Procurement from the
implementation in the analyze data from valid buyer firms‟ perspective.
corporate setting. responses.
The purpose of this study Data were collected from
This study contributed to the
Dawn H. Pearcy Larry C. Giunipero
is to empirically 33 industries through

understanding of the adoption of a
investigate the role of firm questionnaire, by the
wide range of E-Procurement
size in the adoption of E- members of Institute for
applications by examining the role of
Procurement applications. Supply Management in
firm size. The outcome of this
The underlying research the US. The potential
research suggested that firms in
2008
question is as follows: “Is

15
survey participants were

category II (with revenues less than
there a significant from 11 different
$3.5 billion) were not as likely to use
relationship between firm standard industrial. This
integrative E-Procurement
size and the type (more or study examined actual
applications as firms in category I
less integrative) of E- usage of 13 E-
(annual revenues exceeding $3.5
Procurement application Procurement applications
billion).
adopted?” across various industries.
Conducted interviews
Hsin Hsin Chang Yao-Chuan Tsai
with practicing managers The study indicated that information

prior to the empirical sharing and supply chain integration
study. The purposes of are two important factors. The study
Che-Hao Hsu
The study focuses on the interviews were two- found that E-Procurement systems
relationship between fold: to gather insights can facilitate the information flow
2013
16
E-Procurement and supply into each research and activity coordination among
chain performance. construct from the supply chain partners. Supply chain
practice; and to integration has the highest
understand the standardized total effect on supply
appropriateness of the chain performance.
theoretical framework.
65
The aim of this research is Research discussed the benefits
Paul O. Harrigan Mary M. Boyd Elaine

Ramsey Patrick Ibbotson Muriel Bright
to demonstrate that E- provided by the use of E-
The exploratory research
Procurement offers Procurement in manufacturing firms.
adopted a quantitative
manufacturing It also discussed the challenges in
methodology with a
organization with efficient adopting E-Procurement. Significant
questionnaire instrument
solutions to drive benefits and challenges were
2008 being employed to
17
important value into their reported in the study. Study

investigate various E-
respective business. This concluded that the integration of E-
Procurement activities
paper provides a new Procurement, organisations should
within a sample of top
perspective by presenting develop a dual focus on technical
performing ICT
evidence from the Irish and people issues to instil a culture
manufacturing firms.
ICT manufacturing of staff development and continuous
industry. improvement.
The data collected
through questionnaire
Alistair Brandon-Jones Sinéad Carey
form 274 respondents Positive relationship between user-

from those who have perceived EPQ and both system and
The purpose of this paper access to the E- contract compliance found. System
is to examine the extent to Procurement and support compliance was most strongly
which user perceived E- provided by the influenced by professionalism and
2011
18
Procurement quality (EPQ) purchasing departments content dimensions, whilst contract

influences both system and in four organizations. compliance was most strongly
contract compliance. The survey included 33 influenced by processing,
paired statements specification, and content
regarding the component dimensions.
of user perceived E-
Procurement quality.
Study found that the internet based
technology gives companies an
opportunity to gain a competitive
advantage. The proper
implementation of such technology
Mohsen Attaran
The aim of this paper is to

is a key management issue. To make
identify tips for IT
this technology successful, IT
2001
19
managers for successful

managers must work to a plan and
implementation of this
lay technology groundwork. The
technology.
employees play an equally important
role in the success of this technology.
To prepare workers for their new
roles, management needs to begin an
education and training program.
66
The data of this research

was collected by a
The result of the research shown that,
questionnaire form 316
the behavioural intention toward E-
Mohamed Gamal Aboelmaged
Purchase mangers or
Procurement technology is
Supply mangers that
The purpose of this study determined by user‟s attitude;
were not using E-
is to establish an integrated perceived usefulness and subjective
Procurement in UAE.
research model to predict norm (SN). Overall, the results
2010
20
Technology Acceptance
and understand intention to showed that the proposed model has
Model (TAM) and
use E-Procurement good explanatory power and
Theory of Planned
technology. confirmed its robustness, with a
Behaviour (TPB) is used
reasonably strong empirical support,
to investigate both
in predicting users‟ intentions to use
technical and social
E-Procurement technology.
aspect of E-Procurement
technology.
In this research, the
researcher examined the
David C. Wyld,
state of E-Procurement in This study concluded that the push

The aim of this research is
the United States through towards the E-Procurement is being
to examine the growth of
2002
21
an extensive analysis of led by the largest firms and have

Business to Business e-
data from the Institute discussed the other key trends along
commerce.
for Supply Management with few suggestions.
(ISM)/Forrester reports
conducted on e-Business.
This paper presented a
model of the relationship
between E-Procurement The outcomes of this research
Quesada , G. Et al.
The aim of this research is

technology usage, proposed that Electronic
to investigate the impact of
Procurement Practices Procurement technologies usage
Electronic Procurement
2010
positively affects managers‟

22
and Procurement
technologies on
performance. The model perceptions of both Procurement
procurement practices and
is tested and validated Practices and Procurement
procurement performance.
using a sample of 368 performance.
Procurement Specialists
in the USA.
Conflict of interest, bribery,
The purpose of this paper
embezzlement, kickbacks, tender
is to explore and discuss
manipulation and fraud are observed
corruption practices Drawing extensively on
in corruption practices in the
inherent in public
E. Osei-Tutu E. Badu
existing literature and Ghanaian infrastructure projects. In

D. Owusu-Manu
procurement of published data, the the pursuit to control corruption

infrastructural projects in methodology adopted for
practices, this would require
2010
23
Ghana with the aim of the paper consisted of

constitution of a sound procurement
identifying corruption multi-stage critical
system and pro-social equity policies
related challenges that review of pertinent that would foster good governance,
must be addressed in order literature. corporate social responsibility,
to actualize the expected
transparency, accountability,
economic gains of
judicious public expenditure and
infrastructural projects.
national progress.
67

is to examine the factors
This paper reports on an
influencing e-procurement
extended multi-method
adoption in the United
case study of e-
Nations (UN). UN development agencies are more
procurement in the UN.
The study had three likely to adopt e-procurement than
H Walker and C Harland
A three stage
objectives; first, to humanitarian aid agencies as their
methodology is adopted
determine the current and operations are more predictable.
– a questionnaire survey
planned use of E- This study investigated issues,
2008
24
of UN organizations,
Procurement amongst the influences and impacts of e-
case studies of E-
UN system. Second, to procurement adoption by exploring
Procurement issues in
investigate the factors the perceptions of UN heads of
three UN organizations,
affecting e-adoption, and purchasing in an extended multiple-
and an interactive
finally to assess the policy method case study.
workshop with the heads
implications of E-
of purchasing of UN
Procurement, particularly
organizations.
in relation to the digital
divide.
is to report on research that Data were obtained by
Arjun Neupane Jeffrey Soar Kishor Vaidya
evaluates the perceived questionnaire survey

willingness of potential from 220 bidders who
The findings suggest that a high level
bidders to adopt public e- were officially registered
of the ITA has a positive and
procurement for the supply with the Government of
Jianming Yong
significant relationship with the

of goods and services to Nepal. This study used
independent variables that might
the government of Nepal. scientific method to
2014
25
The authors have identified design the research inform the developed and emerging
countries to make a decision to
anti-corruption attributes project including survey
adoption of e-procurement to combat
through an extensive instruments, focusing on
corruption in public procurement.
literature review and facts and objective of the
developed a theoretical assessment of attributes
model representing the that is supported by the
impact of four latent concept of positivism
variables. research approach.
68
Factor analysis revealed that the

group of nine e-procurement tools
could be categorized into two types:
basic, single-process tools and
integrative tools. Study found that
the firms used basic, single-process
D. H. Pearcy, and L. C. Giunipero,
tools to a greater extent than they

The purpose of this The data collected a
used integrative forms of e-
research is to empirically sample of 142 members
procurement. The paper found that e-
assess the extent to which of the Institute for
procurement is being used in the UN
US-based firms use nine Supply Management
2008
26
for transactions of routine, non-

different e-procurement (ISM). Of the 1,025
strategic purchases. UN development
tools that differ in their surveys mailed, a total of
agencies are more likely to adopt E-
ability to facilitate supply 142 useable surveys were
Procurement than humanitarian aid
chain integration. received.
agencies as their operations are more
predictable. This study investigated
issues, influences and impacts of e-
procurement adoption by exploring
the perceptions of UN heads of
purchasing in an extended multiple-
method case study.
Data were obtained from
137 managers of US The results confirm that both
Minkyun Kim, Nallan C Suresh and
The aim of this study is to manufacturing firms. The strategic sourcing and E-
Canan Kocabasoglu-Hillmer
investigate the partial least squares- Procurement have a positive effect

relationships among based structural equation on firm performance. E-Procurement
strategic sourcing, E- modelling approach is found to have a positive impact on
Procurement and firm used for data analysis. strategic sourcing. The research
2015
27
performance, along with Firm performance was suggested that business

the moderating effects of measured by the three characteristics and the environment,
business characteristics aspects of a firm‟s especially the degree of competition,
and environmental factors financial performance, market turbulence, firm size and
on these relationships. operational performance stage in product life cycle moderate
and supply chain these relationships significantly.
performance.
This study adopts a The challenges of e-procurement
qualitative case study implementation in government sector
approach of an e- can be categorised into system
is to understand the
procurement project, specification and implementation
challenges of e-
Kasimin, Hasmiah
which is one of management. Challenges in system

Aman, A. &
procurement
Malaysia‟s e-government specification are not only related to
implementation in the
2011
28
initiatives. Data were software integration and data

government sector and
collected using a management, but also legal and
efforts taken to overcome
triangulation approach administration procedures as well as
the challenges, using a
that involved semi- IT infrastructure, while challenges in
Malaysian government
structured interviews, implementation management are
case.
document reviews and related to outsourcing contract and
observation. IT skills.
69
The paper combines

Three prominent adoption theories
facets of established
that explain innovation adoption are
theories of innovation
highlighted and it was noted that
Arash Azadegan Jeffrey Teich
adoption to develop a
while useful, on their own, these
new broad based
The paper aims to aid in theories may have limited
framework. It then
understanding when and explanatory power. These paradigms
applies the framework to
how benchmarking applies were leveraged to develop an
2010
29
develop propositions on
to technology adoptions by interlocked framework that helps
the adoption of two
introducing a new better explain the factors that
distinct types of e-
conceptual framework. influence innovation adoption. The
procurement
factors were categorized into four
technologies (EPT),
groups: technology, the adopting
namely electronic data
firm, its trading partners and the
interchange and online
network within which it operates.
auctions.
The results indicated that the E-
This paper presents a
The framework was built Procurement tools were fully viable
framework for assessing
on generation of rents. for creating monopoly rents,
alignment between
Three types of rents were moderately viable for creating
Daniel Knudsen
corporate strategy,
identified: monopoly Ricardian rents and only somewhat
procurement strategy and
rents; ricardian rents and viable for creating entrepreneurial
2003
30
purchasing tools. The

entrepreneurial rents. rents. Therefore, it was necessary to
framework is built on
The framework was then first understand how the firm
generation of rents as its
used for assessing the generates rents before procurement
common denominator for
strategic origin of the E- strategy and e-procurement tools
assessing alignment
Procurement were implemented in order to avoid
between the levels.
applications. misalignment.
2.20 Identifying Best Practices in E-Procurement
Following Table 2.2 is made as per the information available in the reports of Aberdeen
Group Inc. in year of 2001, 2005 and 2009, based on the study of those enterprises that
have implemented best practices in the use of E-Procurement to control costs, rationalize
procedure, and improve openness across the extended supply chain. Table 2.2 gives an
overview of few major best practices of E-Procurement adopters, with the monetary/ non-
monetary benefits accrued by them. The objective of doing this by the researcher was to
highlight the few role model companies, with the intention that such practices be
replicated.
70
TABLE 2.2: Best Practices in E-Procurement

Best Practices in E-Procurement
E- Result / Benefits
Company
Description of
Sr No
Procurement
the Company and Area
Solution Monetary Non Monetary
of Business
Provider
It is Non Profit
International, Research Triangle Park, N.C.
1. Savings $300,000 a 1. Enables RTI supply

Organization with
year. managers to make better
RTI (Research Triangle Institute)
more than 2500

2. Enhanced spend spending decisions and
employees and annual
leverage and strategic improves the budgeting
spending of 150
sourcing saved $1 process.
million dollar. Field
million in year 2005 2. Has improved cycle and
RTI, US
Research and
ePlus inc 3. Enabled RTI to delivery time by five to
1
Development work in
reduce its cost per seven days. Traditionally,
Pharmaceutical,
order by 70%, from it takes 30 days.
Advance technologies,
$85 to approximately 3. System has improved
Education and
$25. user productivity.
Training, Economic
4. Dollar savings of 4. Away from day-to-day
and Social
about $500,000 a year tactical buying activities.
development
1. Cost savings through 1. Allows for easier spend
improved contract aggregation and a more
pricing and pricing efficient sourcing process.
It is 3.8 billion dollar
compliance, which is 2. Reduction of requisition
company in US. It
Service Master
conservatively -to-payment
serves 10.5 million
estimated at 3% across cycle.
homes and business
2
Ketera the board. 3. One purchasing

every year
2. Additional savings platform with the ability to
approximately.
ranging from 7% to collect data, track orders,
Field: Chemical
20% through increased receipts, and compliance,
spending leverage and as well as create supplier
sourcing activity. scorecards.
1. Improved contract and
1. $2.875 million in
pricing compliance.
purchase-to-pay
2. Elimination of 52,000
savings since inception.
invoices from use of
The Scottish Executive(SE)
The head office of SE Cap Gemini 2. SE won an extra

physical and embedded
is in Scotland. SE is in as prime 1.5% discount by
Visa government
Research for day to day service automated payments
procurement cards.
issues concerning provider; through an embedded
3. Elimination of 45,000
3
Scottish people in field Elcom‟s Visa procurement card.

invoices as a result of
of education, health, e- 3. Price savings of
electronic consolidated
justice, transport, and procurement $5.834 million from
invoicing.
rural affairs. technology 200 4 to 2005 through
4. Reduction in the
reverse auctions.
number of purchase-to-
4. Major reduction in
pay related processes from
administration costs.
45 to 4.
71
1. $2.875 million in
purchase-to-pay 1. Improved contract and
savings since pricing compliance.
inception. 2. Elimination of 52,000
The Scottish Executive (SE)

The head office of 2. SE won an extra invoices from use of
Cap Gemini
SE is in Scotland. SE 1.5% discount by physical and embedded
as prime
is in Research for automated payments Visa government
service
day to day issues through an procurement cards.
provider;
concerning Scottish embedded Visa 3. Elimination of 45,000
4
Elcom‟s
people in field of procurement card. invoices as a result of
e-
education, health, 3. Price savings of electronic consolidated
procurement
justice, transport, $5.834 million from invoicing.
technology
and rural affairs. 200 4 to 2005 4. Reduction in the
through reverse number of purchase-to-
auctions. pay related processes
4. Major reduction in from 45 to 4.
administration costs.
1. Improvement in
contract compliance and
University of Pennsylvania, Philadelphia,
pricing compliance.
2. Average cycle time
1. Penn attributes (online purchase order
University of
$77.4 million in total creation to electronic
Pennsylvania, US.
Pennsylvania is
product cost savings. order transmission to
known as Penn or
2. Purchasing supplier) has fallen from
Upenn, is a Private, Oracle;
estimates at $7.7 18 days to less than one
5
lvy league SciQuest

million resulting for more than 92% of all
university in
from the enablement purchase orders.
Philadelphia. It is
of Penn Marketplace 3. Improved
established in 1740.
suppliers administrative processes
and reduced the number
of full-time employees
needed to process
transactions.
1. New contracts
signed in 2005 in
It is a world leading
Sweden alone have
project development
generated $4.98
Skanska AB\ Sweden
and construction
million in savings. 1. improved compliance
group. It has
2. using preferred with contracts.
approximately 54000
suppliers within two 2. Both direct and
employees. Gain IBX
6
category areas have indirect spend categories

Revenues of 15.11
saved $137,000, and flow through the e -
billion dollar in 2004
negotiated E- procurement system.
and Spend is about
Procurement price
4.36 billion dollar.
reductions have
yielded another
$311,500 in savings.
72
It is a Research
based
Pharmaceutical
1. Contract compliance
company. It has
has improved more than
approximately
Glaxo Smith Kline (GSK)

20% overall.
100000 employees‟
1. SciQuest allowed 2. Capture more detailed
worldwide. It has its
GSK to spend information,
own 80 SciQuest‟s
halt the practice of enhancing spend
manufacturing sites Spend
using a analysis.
7
in 37 countries and Director

wholesaler, saving 3. Manual purchase
has 24 research and solution
more than $500,000 orders have been
development centres
a year eliminated, allowing
globally. Annual
GSK to reduce
revenues is about
headcount or reassign
37.2 billion dollar
resources.
and annual spend is
about 13 billion
dollar.
HP global company
with annual sales of 1. Contract compliance
1. Achieved over
80 billion dollar, has reached
Hewlett Packard (HP)
$1.8 billion total

Employees: 140000 approximately 80%.
negotiated savings
worldwide in more 2. The spend
and spend reduction.
than 170 countries. management solution has
2. Operation expense
Annual spend is Ariba enabled HP procurement
8
was reduced from

about 60 billion professionals to address
0.95% of total
dollar, 13 billion more corporate spend
spends in 2002 to
dollar in indirect and and focus more on
0.75% in fiscal year
the rest is in direct strategic supply
2005.
materials and initiatives.
services.
1. cost savings achieved

It is a Danish through improved spend
Novo Nordisk
pharmaceutical leverage and sourcing

1. Realized about $
manufacture. IBX and were 15% to 42%.
20 million of savings
9
Revenues: 4.6 billion SAP 2. Maverick buying

in 2003
dollar in 2004. dropped to 19% in
Employees: 20750. Q42004 from 52% in
Q42001.
It is a leading
Producer of Power
1. Reduction in errors
Systems. It operates
due to the elimination of
globally in Civil, 1. Reduction in cost
manual re-keying of
Aerospace, Defence, of goods of up to
buying data;
Rolls-Royce
Marine and Energy. 20%.

2. Reduced cycle time, in
The customers 2. Reduction in
10
Exostar some cases by up to

includes 500 airlines, inventory value
80%;
4000 corporate and levels from $43.5
3. Near-elimination of
utility aircraft and million to $8.7
paper and fax processes.
helicopters,160 million.
4. Improved relations
armed forces and >
with suppliers
2000 marine
customers.
73
It is division of C-
MAC industries Inc.
It provides turnkey
manufacturing for
A Plus Manufacturing
complex, high 1. Cycle time savings for
density and high mix both A-Plus and its
printed circuit boards suppliers.
11
(PCBs) and box Tradec 2. Improved information

build assemblies for transparency.
the 3. More competitive
telecommunications, bids.
video, medical
devices, Industrial
and Military
markets.
1. Eastman has cut

prices paid by 5% to
10% through
Eastman is a global increased contract
1. Ability to evaluate a
provider of more compliance,
larger group of suppliers
Eastman Chemical Florida
than 400 chemicals, shortened order-

based on a broader range
fibres and Plastics. fulfilment cycles
of parameters.
Employees: 16500 in Commerce from a week to 24
2. Increased visibility
more than 30 One, hours
into the cost structure of
12
countries. It has Diligent, 2. Lowered

supplier bids has helped
manufacturing Software administration costs
Eastman determine the
facilities in five Systems by $100,000
total cost of doing
states in US. It annually
business with a supplier.
spends 2.7 billion 3. Realize a 126%
3. It has also reduced
dollar annually on return on investment
sourcing cycles by 25%
goods and services. (ROI) on the
Commerce One
solutions in just 10
months
1. Overall purchasing
cycle times have been
FedEx has over 370 reduced from 20% to
facilities in the U.S. 70%.
and Canada, and a 2. Transfer procurement
presence in over 211 professionals to more
FedEx Corporation
countries worldwide. strategic activities.

FedEx, 20 billion 3. FedEx reduced the
dollar values, it number of suppliers by
1. FedEx has seen
13
consists FedEx Ariba more than half, from

savings of up to 40%
Express, FedEx 90,000 to 110,000 down
Ground, FedEx to 40,000 to 50,000. Of
Freight, FedEx the 2,500 suppliers that
Custom critical, FedEx does regular
FedEx trade business with, 75 are
networks and FedEx currently enabled on the
Services. Ariba system.
4. Able to have largest
volume buys.
74
1. Reducing the time it

takes to propagate
changes in plans,
Its main business is forecasts, and POs.
Komatsu Mining System Inc.

related to 2. Driving significant
Manufacturing and productivity
selling of improvements.
construction and 3. Saved nearly 120
14
Mining equipment. Baan hours per week in non-

Komatsu group value-added time.
consists of 179 other 4. Automating supplier
companies, interactions has
141consolidated eliminated more than
subsidiaries. 3,000 pages per month of
correspondence that was
once printed, faxed, and
mailed to suppliers.
1. Able to evaluate and
negotiate with suppliers
all over the globe.
2. With Full Source
automating data
collection, publication,
SPX is fast growing and revisions, SPX‟s
company with 34 buyers have been able to
business units in 34 focus on more strategic
countries. It has tasks, such as qualifying
SPX Corporation
highly diversified Able to achieve new suppliers and

product mix, ranging significant unit cost thoroughly analyzing
Free-
15
from storage area savings, ranging bids.

-Markets
network products from 0.5% to over 3.These efficiencies have
and 20%. allowed SPX to apply
telecommunication strategic sourcing to
equipment to spending areas such as
electrical transformer temporary labour,
and vehicle transportation,
components. maintenance, repair, and
operating (MRO)
supplies that previously
had been overlooked due
to time and resource
constraints.
(Source: Compiled by Author, based on Literature Review)
Summary
The review of literature has revealed that the researches during the last two decades were
undertaken on E-Procurement practices from different angles and parameters namely:
Implementation, E-Procurement Systems, E-Procurement Adoption Behaviour, E-
Procurement Technology, Administrative aspects, E-Procurement Innovations etc.
The Research-gap identified in the various studies encouraged the researcher to undertake
a study of E-Procurement practices in selected organisations in Gujarat.
75
Research Methodology
CHAPTER 3
3.0 Introduction
Methodological process of defining problem, gathering facts or data, analyzing data and
accomplishing objectives is known as Research Methodology. Research Methodology
illustrates methods used to collect facts or data, research plan, sampling methods,
instrumentation and measurement, framing of model and analysis of data.
3.1 Definition of the Problem
Many developing countries like India are undergoing through major modernization
process. There are 243 Million internet users in India from the huge population of 1.237
Billion. The number of users may increase to 500 Million by 2018. India will become
larger than the US in terms of number of Internet users by the end of 2014 (Rajan
Anandan, MD, Google India) 177 . Procurement is really a collection of processes that
involve many steps and interactions with the other departments of a company and with the
suppliers. Because purchasing costs typically run to 50% of operational costs, the
procurement process provides many opportunities for cost savings that can make a great
difference to a company's bottom line. The rule of thumb is that a 5% savings in
purchasing costs can increase profit by 50%, and would equally increase revenue by 50%,
or a reduction in overhead costs of about 20%178. Traditionally, procurement was paper-
and conversation-based, usually with procurement officers interacting with long-time
partners or well-known suppliers and purchasing at fixed prices. In recent years, this has
changed to a certain extent to become a strategic function. Procurement officers seek
suppliers that fit with a company's overall strategy. E-Procurement involves moving the
procurement process online to cut out steps and save money. In business, time is money.
177
Rajan Anandan, MD, Google India, “Internet usage” last retrieved on 23.03.2016 from
http://blog.digitalinsights.in/important-statistics-digital-and-social-media-users-in-india/05224987.html
178
Haffar, N. and Wassim, M., “E-Procurement Technology”, Dubai Municipality, price water house
coopers last retrieved dated 21.02.2014 from
76
So, more a company can reduce the involvement of staff in purchasing by quickly issuing a
purchase order, the more it can reduce on operational costs179. The use of internet has made
the world smaller and, through it, business transactions are conducted globally at a faster
pace. The age of connectivity has reduced distances and brought people closer. Today
many companies use E-Procurement as a strategic tool to compete with others. Research
problems arise from the fact that a lot of businesses are still relying on the traditional
procurement and literature has provided limited result on e- procurement practices.
Therefore, the researcher has selected to study the E-Procurement practices in

selected manufacturing industrial units of Gujarat.
3.2 Research Objectives
1. To study the present status and to compare E-Procurement in selected manufacturing

industrial units of Gujarat.
2. To explore/ identify the difficulties faced in E-Procurement implementation.
3. To identify the reasons that has led to the implementation of E-Procurement in the
selected manufacturing industries of Gujarat.
4. To study the extent to which Information Technology (IT) tools are used in e-
procurement.
5. To study the documents exchanged in E-Procurement through Electronic Data Inter
change (EDI).
6. To identify the scopes for further up-gradation of Information Technology (IT) to
support the E-Procurement process.
3.3 Research Questions
1. Is there any relationship of E-Procurement practices adopted by the firm across the
Industry?
2. Is there any relationship between the E-Procurement practices adopted by the firm and
Size of the Organization?
179
“Procurement vs E-Procurement” last retrieved from 20.03.2016 from https://www.bdc.ca/en/articles-
tools/operations/purchasing/pages/traditional-vs-E-Procurement.aspx?caId=tabs-1
77
3. Is there any relationship between E-Procurement practices adopted by the firm and
Ownership of the Organization?
4. What is the present status of E-Procurement in these selected manufacturing industrial
units of Gujarat?
5. What are the difficulties faced in E-Procurement implementation in these selected
manufacturing industrial units of Gujarat?
6. What are the reasons that have led to the implementation of E-Procurement in the
selected manufacturing Industrial units of Gujarat?
7. To what extent Information Technology (IT) tools are used in E-Procurement?
8. Which documents are exchanged with supplier through EDI and what methods are
used?
9. Are there any scopes for further up-gradation of Information Technology (IT) to
support the E-Procurement process?
3.4 Research Hypothesis
Ho1: There is no significant difference in difficulties faced in E-Procurement

implementation across industry, size of the firm and the ownership of the firm.
Ho2: There is no significant difference in procurement objectives across industry, size of
the firm and the ownership of the firm.
Ho3: There is no significant difference of reasons for adopting E-Procurement across
industry, size of the firm and the ownership of the firm.
Ho4: There is no significant difference in importance of further up gradation of IT to
support the procurement process across industry, size of the firm and the ownership of the
firm.
Ho5: There is no significant difference in IT tools used for E-Procurement across industry,
size of the firm and the ownership of the firm.
Ho6: There is no significant difference in IT tools preferred for E-Procurement across
industry, size of the firm and the ownership of the firm.
Ho7: There is no significant association between size of the firm (based on Number of
employees) and IT solutions used for operative order processing.
Ho8: There is no significant association between size of firm and method used to exchange
the electronic business documents with suppliers.
78
3.5 Scope of the Work
The aim of the present research is to study the E-Procurement practices in the
manufacturing industrial units of Gujarat which are using E-Procurement. Those industrial
units of Gujarat which are not using E-Procurement are out of the scope of the present
study.
3.6 Research Design

Research design is a blueprint indicating the techniques and process used by a
researcher(s) to gather data and analyse it for their research. In general, the research
designs used by researchers may be exploratory, descriptive and causal. According to Reis,
H.T & Judd, C.M., (2000)180 , Research Design can be defined as the systematic planning
of research to achieve a given set of objectives. Malhotra, N & Dash, S., (2011)181 said
that the research design of any research study is a combination of Descriptive as well as
Exploratory Research. Descriptive Research is a type of conclusive research that has as its
major objective the description of something- usually market characteristics or functions.
Polit, D.F. et al., (2001)182 defined a research design as “the overall plan for collecting and
analysing data including specifications for enhancing the internal and external validity of
the study”. Research design focuses on how the research is to be conducted. It includes all
main fractions of the research study such as the samples or groups, measures, treatments or
programs, etc and work together in order to address the research questions.
Exploratory study is significant for getting a good hold of the phenomena of interest and
for advancing knowledge through good theory building and hypotheses testing.
Exploratory research is meaningful in any situation where the researcher does not have
enough understanding to proceed with the research project. Exploratory research is
characterized by flexibility and versatility with respect to the methods because formal
research protocols and procedures are not employed. Malhotra, Y., (2005)183 states that
180
Reis, H.T & Judd, C.M (2000), “Handbook of Research Methods in Social and Personality Psychology”
from https://books.google.co.in/books/about/Handbook_of_Research_Methods_in_Social_
181
Malhotra, N & Dash, S (2011), “Marketing Research – An applied orientation (6th Edition)” from Dorling
Kindersley (India) Pvt Ltd
182
Polit, D. F., Beck, C.T. & Hungler, B.P. (2001), “Essential of Nursing Research – Methods, Appraisal and
Utilization”, 5th Edition, Philadelphia: Lippincott.
183
Malhotra, Y. (2005), “Integrating Knowledge Management Technologies in Organizational Business
Processes: Getting real time enterprises to deliver real business performance”, Journal of Knowledge
Management, Vol.9 Iss: 1
79
Descriptive research is normally more proper and ordered than Exploratory Research.
Descriptive Research design describes the characteristics of relevant group.
This research is based on newness of the technology involved. Search of the literature with
reference to India has provided limited results. So, the research will contain Descriptive
research design with an objective to study E- Procurement Practices in selected
organizations in Gujarat.
3.7 Area of Study
This study pertains to selected industrial units from the entire Gujarat: South Gujarat,
North Gujarat, Central Gujarat and Saurashtra region.
3.8 Sample Design
A sample is taken from the target population. The outcome of research will be derived
from selected manufacturing units of Gujarat. Hence the universe for this study is all the
manufacturing industrial units of entire Gujarat. According to Zikmund, W. (2003)184 ,the
sample should be sufficiently large, that it will have characteristics of the Population. The
sample design involves Sampling Unit, Sampling Technique and Sample Size.
3.8.1 Sampling Unit
Aim of the research is to study the E-Procurement practices in selected Industrial units
(manufacturing firms) of Gujarat. The sampling unit is an Executive and Managers
concerned with E-Procurement activities of an organization.
3.8.2 Sampling Method
According to de Leeuw, E. D. et al. (2008)185 , different sampling techniques are used

when inferences are made about the target population. The sampling technique adopted for
this survey is non probability convenience sampling.
184
Zikmund, W. (2003), “Business Research Method, 7th Edition”. London: Thomson South-Western.
185
de Leeuw, E. D., Hox, J. J., & Dillman, D. A. (2008). “International handbook of survey methodology”.
New York, NY: Taylor & Francis.
80
3.8.3 Sample Size
Burns, A.C. & Bush, R.F., (2010)186 stated that Sample size represents the Population.
Saunders, M. et al., (2009)187 stated that the large sample more accurately represents the
population. Pallant, J., (2007)188 said that there was a general understanding among the
authors of Statistical books that large sample is suitable for the use of various statistical
analyses. Lawley, D.N. & Maxwell, A. E., (1971)189 suggested 51 more cases than the
number of variables. Data were collected from 72 Manufacturing Industrial Units from the
entire Gujarat which includes South, North, Central Gujarat and Saurashtra region. Data
were collected by non probability convenience sampling technique.
TABLE 3.1: Sample Profile

No of Company
Region
(Respondent)
Central Gujarat
19
(Vadodara, Anand, Halol, Savli, Asoj, Godhra etc.)
South Gujarat
(Bharuch, Ankleshwar, Surat, Valsad, Vapi , Atul, 18
Dahej etc.)
North Gujarat
(Ganhinagar, Mehsana, Unja, Ahmadabad, Sanand, 19
Kalol, Bavala etc.)
Saurastra and Kutch
(Rajkot, Morbi, Jamnagar, Surendranagar , Anjar, 16
Amreli, Wadhwan, Kutch etc.)
(Source: Primary data)
3.9 Sources of Data
Sources of data are categorised as primary sources or secondary sources. According to

Malhotra, N., (2009) 190 , Primary Data are originated by a researcher for the specific
purpose of addressing the problem at hand. In the present study, primary data has been
186
Burns, A.C & Bush, R.F (2010), “Marketing Research, 6 th Edition”, Pearson
187
Saunders, M., Lewis, P. & Thornhill, A. (2009), Research Methods for Business students, 5th edn. Essex:
Pearson Education Limited.
188
Pallant, J (2007), “SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS for
Windows”, (3rd Edition), Berkshire: McGraw Hill: Open University Press from
http://surveyresearch.weebly.com/pallant-2007-3rd-edition.html
189
Lawley, D.N. & Maxwell, A. E. (1971), “Factor Analysis as a Statistical Method”, American Elsevier
Pub.Co.
190
Malhotra, N. (2009), Marketing Research: An Applied Orientation,(6th Edition), Pearson, Upper Saddle
River, NJ.
81
collected by way of administering a structured questionnaire and getting it filled by the

respondents.
Secondary Data are Data which have already been collected for purposes other than the
problem at hand. Secondary sources in the study included information from journals,
books, thesis/ dissertations, website references as well as Governmental / Institutional
Reports or Publications and Directories.
3.10 Planning of Data Collection
According to Malhotra, N., (2009) 191 , Survey Method is used to collect primary data/
information by asking questions from the respondents. In this research study, data were
collected from 72 manufacturing firms from the entire Gujarat through Survey Method.
Respondents were asked various questions on E-Procurement. Data were collected with the
help of a structured questionnaire. In this method, a formal questionnaire having questions
prearranged in order is used.
3.11 Data Collection Instrument & Scaling Technique
Questionnaire is a prearranged method for data collection, consists of a sequence of written

or verbal questions. According to Malhotra, N., (2009)193, Questions in questionnaire are
the key to the survey research so they must be developed with caution as it is very
important to the survey. Hague, P. N., (2004)192 said that the main advantage of close-
ended questions was that they were pre-coded, hence they suited for self-completion
questionnaires as it saves time to writing the answer. Therefore, the close ended questions
were used in this study to collect the response by asking them to choose a given option.
In this study, the questionnaire begins with getting the basic details of the Companies. The
structured questionnaire focused on the present status of E-Procurement which includes
procurement objectives, extent to which Information Technology used to carry out
procurement functions, reasons that have led to Implementation of E-Procurement, extent
of Information Technology (IT) tools and IT Solutions used in E- Procurement, documents
191
River, NJ.
192
Hague, P.N. (2004), Market research in practice: a guide to the basics, (Electronic resource) available at:
http://site.ebrary.com/lib/uon/Top?id=10084442&layout=document.
82
exchanged in E-Procurement through EDI, difficulties faced in E-Procurement

implementation and importance of further up gradation of IT to support the strategic
procurement process.
The questionnaire of this study is framed based on the available Literature. It is based on
the following Study:
Tanner, C., et al. (2007) 193 , this research was carried out on Current Trends and
Challenges in Electronic Procurement. This study has focused on main goals in
procurement, business documents exchanged with Supplier, difficulties faced in E-
Procurement implementation, further development of the use of Information Technology in
procurement. Tanner, C et al. (2006) 194 , this research was carried out on the role of
Information Technology in procurement. This study included the contribution of
Information Technology (IT) to carry out the Procurement function, Information
Technology (IT) solution used for operative order processing, Number of Suppliers with
whom business documents were exchanged by means of EDI / WEB EDI, Methods by
which electronic business documents exchanged with suppliers.
The data collected through close-ended questions include Nominal Data, Categorical Data
and Data on Likert scale. The researcher has used 3 point and 5 point Likert Scale in some
questions for the study. According to Prayag, G., (2007)195, five point scales help to reduce
the frustration among the respondents and it will also improve the rate and quality of data
collected from respondents. Malhotra, N., (2009)196 added that five point Likert Scale was
very easy to construct and administered. Moreover, respondents readily understand how to
use scale and this scale is more suitable for mail and personal interview.
193
Tanner, C.,Wolfle, R., Schubert, P., and Quade, M. (2007), “Current Trends and Challenges in Electronic
Procurement: An Empirical Study”, 20th Bled eConference, eMergence: Merging and Emerging
Technologies, Processes, and Institution, Bled, Slovenia.
194
Tanner, C.,Wolfle, R., and Quade, M. (2006), “The role of Information Technology in Procurement in the
Top 200 companies in Switzerland”, University of Applied Sciences North-western Switzerland – FHNW
School of Business, www.fhnw.ch/wirtschaft/iab.
195
Prayag, G. (2007), “Assessing International Tourists‟ Perceptions of Service Quality at Air Mauritius”.
International Journal of Quality and Reliability Management, Vol. 4, No .5, pp. 492-514
196
River, NJ.
83
3.12 Pilot Study
A pilot study was carried out prior to the data collection stage. According to Malhotra, N.,
(2009) 197 pilot study as a testing of questionnaire on a small sample of respondent to
identify and eliminate potential problem. The appropriateness of the questions of the
questionnaire was tested including question content, wording, sequence, form and layout.
Survey of 49 companies was conducted in pilot study. The comments were sought on the
length, completeness and readability of the survey and each item was reviewed for content,
scope and purpose. Although the participants indicated no major modifications, however, a
number of important comments were incorporated in the instrument development and
wording/consistency of the questionnaire items.
3.12.1 Reliability of the Research Instrument
Reliability test was performed during the scale development process, to see the consistence
of the scale. Reliability, is a sign of how reliable the results are, depends on the technique
of data collection and analysis. Moreover, according to Saunders, M., et al., (2007)198 the
reliability is more required when questionnaire uses Likert scale for collection of data from
the respondents.
In the words of Freeman, M. S., (1965)199 , the term reliability has two closely related but
somewhat different implications in psychological testing. First, how precisely the test
measures a particular thing? Second, reliability refers to the extent to which a measuring
device yields constant results upon testing and re-testing”.
Generally, the Cronbach‟s alpha is used to compute the reliability of the instrument.
According to Pallant, J., (2007)200 ,Cronbach‟s alpha estimate shows how nicely the items
197
River, NJ.
198
Saunders, M., Lewis, P. & Thornhill, A. (2009), Research Methods for Business students, 5th edn. Essex:
Pearson Education Limited.
199
Freeman, F.S., (1965), Theory and Practice of Psychological Testing, New Delhi: Oxford and IBH
Publishing Co., Indian edition.
200
Pallant, J. (2007), SPSS Survival manual: A Step by Step Guide to Data Analysis using SPSS for
Windows, 3rd edn. Berkshire: McGraw Hill: Open University Press.
84
in the questionnaire are interrelated. According to Hair, J.F. et al,. (2006)201, the Cronbach
alpha coefficient ranges from 0 to 1 with a minimum of 0.6 while other studies suggest that
anything above 0.7 suggest high levels of internal reliability. Nunnally, J. C., (1978)202
suggested that an alpha value of 0.7 is acceptable.
TABLE 3.2: Reliability Test Result

Variable No. of Items Cronbach's Alpha
All Variables (Entire Questions) 96 0.890
Procurement Objectives 12 0.724
Reasons that has led to the implementation
12 0.820
of E-Procurement
IT tools used for procurement 11 0.802
Difficulties faced in E-Procurement
10 0.764
implementation
Further up gradation of IT to support the
17 0.794
procurement process
(Source: Primary data; SPSS Output)
In this study, reliability test is performed by using SPSS version 20.0 through Cronbach
alpha coefficient. According to Nunnally (1978), Alpha value of 0.7 is used as minimal
accepted level. Internal reliabilities were computed for 12 items of procurement objectives
and Cronbach Alpha value obtained is 0.724, reliabilities were computed for 12 items of
reasons that has led to the implementation and Cronbach Alpha value obtained is 0.820,
reliabilities were computed for 11 items of IT tools used for procurement and Cronbach
Alpha value obtained is 0.802, reliabilities were computed for 10 items of difficulties faced
in E-Procurement implementation and Cronbach Alpha value obtained is 0.764 and
reliabilities were computed for 17 items of further up gradation of IT to support the
procurement process and Cronbach Alpha value obtained is 0.794. Further, reliabilities
were computed for all the items (96 items) of instrument and Cronbach Alpha value
obtained is 0.890. This result shows that the research instrument appears to be highly
reliable.
201
Hair J.F, Black W.C., Babin B.J., Anderson R.E. and Tatham R.L. (2006), Multivariate Data Analysis (6th
ed.), Upper Sadle River, New Jersey: Prentice Hall.
202
Nunnally, J.C. (1978), Psychometric Theory, 2nd ed., McGraw-Hill Book Company, New York, NY.
85
3.13 Research Ethics
The research was carried out based on the fair and honest principle. In the case of primary
data, the research was conducted in respect of the selected manufacturing units of Gujarat.
All the respondents were well informed about the purpose of research and data collection.
It was also informed that collected data will not be processed with intent to take measures
or decision but only for the statistical research. No participant or data subject were
identified or identifiable in the report and as well as the results. Specific provisions of
confidentiality were taken in the case of technology and performance of the adopted E-
Procurement system in the research. In the case of secondary data, data collected from the
documents and reports were of public domain. A clear Openness attitude during the data
collection was the basis of the interaction with the respondents. Entire research was
exclusively based on valid as well as reliable data.
86
Data Analysis and Major Findings
CHAPTER 4
4.0 Introduction
After the Pilot Testing, data collection of 72 respondents was carried out. The analysis of
data begins after the collection of data. The scheme of data analysis is closely linked with
the nature of data collected for the research study. According to the Gromme, N.,
(1998)203, data processing is concerned with activities and technologies which prepare the
collected data for analysis: data checking, entry, coding, and editing. Data analysis
concerns activities and technologies which provide statistical insight in the collected data:
weighting, tabulations, and response analysis.
In this chapter, researcher has used SPSS 20 to carry out different statistical tests for the
purpose of data analysis. Data were first coded in excel sheet and exported to Statistical
Software for further analysis.
The data analysis in the present chapter has been divided into two main heads:
(1) Descriptive Analysis: Statistical tools used in the present research study pertaining to
descriptive analysis: Frequency Distributions and Cross Tabulation
(2) Inferential Analysis: Statistical tools used in the present research study pertaining to the
inferential analysis: Exploratory Factor Analysis, Kruskal Wallis and Chi-square Analysis.
Question wise exploratory factor analysis was performed in which Principal Component
Method with Varimax rotation was used. Relations between E-Procurement practices and
the types of Industry, Size of the company (which is further classified based on Investment
in plant machinery and based on the number of employees), and Ownership of the
company were examined through Kruskal Wallis Test, and Chi-square Analysis.
203
Gromme, N. (1998), “Data Processing and Analysis”, In McDonald, C. and Vangelder, P. (eds, 4 th edition,
pp.389-416.
87
Throughout the analysis, acceptance and rejection of hypotheses was done at the
confidence interval of 95%. (5% of level of significance).
Table 4.1 shows the Achievements with respect to objectives and the tools used to achieve
each objective.
TABLE 4.1 - Achievements With Respect To Objectives

Sr
Objectives Analysis/ Tools Achievements
No
Kruskal-Wallis Test
To study the present status and to Hypothesis testing done
Chi-Square Test
1 compare E-Procurement in selected
manufacturing industrial units of Cross-Tabulation Linkages established
Gujarat. Frequency Distributions across various variables
Hypothesis testing done

To explore/ identify the difficulties Frequency Distributions
2 faced in E-Procurement Kruskal-Wallis Test Linkages established
across various variables
implementation. Factor Analysis
Factor Identified
Hypothesis testing done
To identify the reasons that has led to
Frequency Distributions
the implementation of E-Procurement Linkages established
3 Kruskal-Wallis Test
in the selected manufacturing across various variables
Factor Analysis
industries of Gujarat.
Factor Identified
Frequency Distributions Hypothesis testing done
To study the extent to which
Kruskal-Wallis Test
4 Information Technology (IT) tools are Linkages established
Chi-Square Test
used in e- procurement. across variables
Cross-Tabulation
Frequency Distributions Hypothesis testing done
To study the documents exchanged in Kruskal-Wallis Test
5 Linkages established
E-Procurement through EDI. Chi-Square Test
across various variables
Cross-Tabulation
To identify the scopes for further up- Hypothesis testing done
Frequency Distributions
gradation of Information Technology
6 Cross-Tabulation Linkages established
(IT) to support the E-Procurement
Kruskal-Wallis Test across various variables
process.
(Source: Compiled by Author)
88
4.1 Descriptive Statistics
Trochim, W. M., (2006)204 Descriptive statistics are used to describe the basic features of
the data in a study. It also provides a summary about the sample presented in a simple
graphics form. Descriptive statistic is a set of brief descriptive statistics to summarize a
given data set like mean, median , mode, and standard deviation, etc which can either be a
representation of the entire sample or a population. The measures which can be used to
describe the data set are categorized as measure of variability and central tendency. This
section provides an overview, results and evaluation of respondents towards E-
Procurement practices of selected Industrial Units of Gujarat. Researchers have interpreted
the questionnaires results in the form of tables and figures.
4.1.1 Frequency Distribution.
4.1.1.1 Classification of Companies Based on Types of Industry.
TABLE 4.2: Classification of Companies Based on Types of Industry

Industry Based on Product
Industry Frequency Percent
Chemical & Petroleum 18 25.0%
Automotive 5 6.9%
Pharmaceutical 4 5.6%
Electrical 8 11.1%
Textile 7 9.7%
Engineering & Machine Tools 18 25.0%
Fertilizer 1 1.4%
Others 11 15.3%
Total 72 100.0%
The industries of the participating companies primarily have been categorised as Chemical
& Petroleum (25% or 18), Automotive (6.9% or 5), Pharmaceutical (5.6% or 4), Electrical
(11.1% or 8), Textile (9.7% or 7), Engineering & Machine Tools (25% or 18), Fertilizer
(1.4% or 1) and others (15.3% or 11).
204
Trochim, W.M. (2006), “The Research Methods Knowledge Base”, 2nd edition, from
http://www.socialresearchmethods.net/kb/>
89
4.1.1.2 Classification of Companies based on Size (Investment in plant machinery)
TABLE 4.3: Classification of Companies based on

Size of the company - Based on Investment in plant machinery
Investment In Plant Machinery Frequency Percent
Investment between 25 lakh to 5 crore rupees 2 2.8%
Investment between 5 crore to 10 crore rupees 10 13.9%
More than 10 crore Investment 60 83.3%
Total 72 100.0%
The size of the participating companies was based on investment in plant machinery. The
majority of them (83.3%) can be defined as large companies according to the standards.
Moreover, 2.8 % of the participants operate as small or micro business. The other 13.9%
of the participating companies categorise themselves as medium.
4.1.1.3 Classification of Companies based on Size (Number of Employees)
TABLE 4.4: Classification of Companies based on

Size of the company - Based on No. of Employees
No. of Employees Frequency Percent
50 to 249 employees 12 16.7%
More than 249 employees 60 83.3%
Total 72 100.0%
The size of the participating companies was also measured on the basis of number of
employees. The majority of them (83.3 %) can be defined as large companies according to
the standards. The other 16.7% of the participating companies categorise themselves as
medium.
4.1.1.4 Classification of Companies Based On Ownership Form
TABLE 4.5: Classification of Companies - Ownership Form

Ownership Form Frequency Percent
Public Sector 21 29.2%
Private Sector 46 63.9%
Joint Sector 5 6.9%
Total 72 100.0%
90
The ownership of the participating companies is primarily categorized as Public Sector (21
or 29.2%), Private Sector (46 or 63.9%) and Joint Sector (5 or 6.9%).
4.1.1.5 Classification based on Importance of Procurement objectives
TABLE 4.6: Classification of Importance of Procurement Objectives

Not
Not Most
Procurement Objectives Important Neutral Important
Important Important
at all
Reduction of the purchasing price 0 0 6 38 28
Optimising total costs of
0 0 11 30 31
procurement
Internal process optimisation 1 3 11 18 39
Securing supplies 0 0 11 32 29
Maintaining quality guidelines 0 0 7 17 48
Increase in cost transparency 0 0 18 22 32
B2B process optimisation 0 1 8 38 25
Minimising warehouse costs 0 2 10 30 30
Reduction of the number of
3 15 19 32 3
suppliers
Product development with
0 10 17 28 17
suppliers
Outsourcing of operative
2 8 21 29 12
procurement processes
Outsourcing of strategic
2 10 14 36 10
Table 4.6 shows the frequency of Importance of Procurement Objectives. 66 companies
have considered “Reduction of the purchasing price” as the important Procurement
Objective. 61 companies have selected “Optimising total costs of procurement” and
“Securing supplies” as their important procurement Objectives. 57 Companies have
chosen “Internal process optimisation” as an important procurement Objective.
Likewise, 65 companies have considered “Maintaining quality guidelines”, 54
companies have considered “Increase in cost transparency”, 63 companies have
considered “B2B process optimisation”, 60 companies have considered “Minimising
warehouse costs”, 35 companies have considered “Reduction of the number of
suppliers”, 45 companies have considered “Product development with suppliers”, 41
companies have considered “Outsourcing of operative procurement processes” and 46
companies have considered “Outsourcing of strategic procurement processes” as their
important procurement Objective.
91
4.1.1.6 Extent to which Information Technology (IT) is used to carry Out the
Procurement Functions Successfully.
TABLE 4.7: Extent to Which Information Technology (IT)

Used to Carry Out the Procurement Functions Successfully.
IT used Frequency Percent
To a very small extent 3 4.2%
To a small extent 3 4.2%
To a moderate extent 15 20.8%
To a great extent 29 40.3%
To a very great extent 22 30.6%
Total 72 100.0%
Table 4.7 shows the frequency of Extent to which Information Technology (IT) is used to
carry out the procurement functions successfully. 3 out of 72 Manufacturing Industrial
Units have used IT to a very small extent to carry out the Procurement function. 3 out of 72
Manufacturing Industrial Units have used IT a small extent to carry out the Procurement
function. 15 out of 72 Manufacturing Industrial Units have used IT to a moderate extent to
carry out the Procurement function. 29 out of 72 Manufacturing Industrial Units have used
IT to a great extent to carry out the Procurement function. 15 out of 72 Manufacturing
Industrial Units have used IT to a very great extent to carry out the Procurement function.
4.1.1.7 Reasons that has Led to the Implementation of E-Procurement
TABLE 4.8: Reasons that has led to the implementation of E-Procurement

Not
Not Most
Reasons Important Neutral Important
Important Important
at all
Central coordination and
0 0 12 50 10
aggregation of demand
Accountability 0 0 1 34 37
Openness 0 0 3 30 39
Transparency 0 0 5 14 53
Process efficiency 0 5 3 21 43
Costs/expenditure transparency 0 2 9 37 24
Reduction in purchasing price
0 4 10 38 20
(price discrimination)
Price Discovery 0 4 6 46 16
Process quality assurance 0 3 5 30 34
92
Integration of suppliers into the

0 1 15 37 19
procurement system
Decentralised supply of
0 6 27 36 3
information
Decentralisation of operative
3 6 26 36 1
tasks
Table 4.8 shows the frequency of Reasons that has led to the implementation of E-
Procurement in selected manufacturing Companies in Gujarat. 60 companies have
considered “Central coordination and aggregation of demand” is the important reason for
adopting E-Procurement. 71 companies have selected “Accountability” as their important
reason for adopting E-Procurement. 69 Companies have chosen “Openness” as an
important reason for implementing an E-Procurement. Likewise, 67 companies have
considered “Transparency”, 64 companies have considered “Process efficiency”, 61
companies have considered “Costs/expenditure transparency”, 58 companies have
considered “Reduction in purchasing price (price discrimination)”, 62 companies have
considered “Price Discovery”, 56 companies have considered “Integration of suppliers into
the procurement system”, 39 companies have considered “Decentralised supply of
information” and 37 companies have considered “Decentralisation of operative tasks” as
their important reason for adopting E-Procurement.
4.1.1.8 Information Technology (IT) Tools Used for Procurement.
TABLE 4.9: Information Technology (IT) Tools Used for Procurement.

IT Tools Not Used Occasionally Frequently
Material Management Module (Enterprise Resources
4 7 61
Planning System)
Reporting and Controlling Tool 2 20 50
Electronic Data Interchange (EDI) 18 29 25
Tool For Supplier Evaluation 13 29 30
Catalogue Management Tool for Indirect Goods 15 30 27
Desktop Purchasing of Indirect Goods 14 39 19
Contract Management Tool for Direct Goods 8 40 24
Online Invitation to Tender 12 21 38
Online Purchasing Auctions 20 15 37
Web-Platform for Scheduling & Planning with Suppliers 23 24 25
Web-Platform for Product Development with Suppliers 26 23 23
93
Table 4.9 shows the Frequency of Information Technology (IT) tools used for
procurement. 61 companies frequently used “Materials management module (ERP-
System)” IT tool for Procurement, While, 50 companies frequently used “Reporting &
controlling tool” , 38 companies frequently used “Online invitations to tender” and 37
companies frequently used “Online purchasing auctions” IT tools for their Procurement.
Likewise, 30 companies frequently used “Tool for supplier evaluation”, 27 companies
frequently used “Catalogue management tool for indirect goods”, 25 companies frequently
used “Web platform for scheduling and planning with suppliers” and “Electronic data
interchange (EDI)”, 24 companies frequently used “Contract management tool”, 23
companies frequently used “Web platform for product development with suppliers” and 19
companies frequently used “Desktop purchasing of indirect goods” IT tools for
Procurement.
4.1.1.9 Information Technology (IT) Solution Used for Operative Order Processing.
TABLE 4.10: IT Solution Used for Operative Order Processing.

Responses
IT Solution
Freq Percent
SAP MM (Materials Management Module) 37 51.40%
SAP BBP/EBP (The SAP solutions Enterprise Buyer Professional
9 12.50%
(EBP) and its preceding version (BBP)
Purchasing Card (VISA, Airplus, Amexco ..) 14 19.40%
SAP SRM (Supplier Relationship Management ) 6 8.30%
Oracle, PeopleSoft, J.D.Edwards 4 5.60%
Ariba 2 2.80%
Product development in-house 10 13.90%
ERP 38 52.80%
Table 4.10 shows the frequency of IT solutions used for operative order processing. 38 out
of 72 Manufacturing Industrial Units are using ERP. 37 out of 72 Manufacturing Industrial
Units are using SAP MM (materials management module). 14 out of 72 Manufacturing
Industrial Units are using Purchasing Card (VISA, Airplus, Amexco ..), 9 out of 72
Manufacturing Industrial Units are using SAP BBP/EBP (The SAP solutions Enterprise
Buyer Professional (EBP) and its preceding version (BBP), 10 out of 72 Manufacturing
Industrial Units are using Product development in-house, 6 out of 72 Manufacturing
94
Industrial Units are using SAP SRM (Supplier Relationship Management), 4 out of 72
Manufacturing Industrial Units are using Oracle, PeopleSoft, J.D.Edwards and Only 2 out
of 72 Manufacturing Industrial Units are using Ariba.
4.1.1.10 Information Technology (IT) Tools preferred to fulfil Industrial Procurement

Expectations.
TABLE 4.11: Preferred IT Tools to Fulfil Industrial Procurement Expectations.
IT Tools Not Preferred Neutral Preferred

0 13 59
Planning System)
Desktop purchasing indirect goods 22 28 22
Contract Management Tool for Direct Goods 10 36 26
Reporting and controlling tool 7 17 48
Web platform for scheduling/planning with suppliers 25 19 28
Electronic Data Interchange (EDI) 7 41 24
Tool For Supplier Evaluation 13 23 36
Catalogue Management Tool for Indirect Goods 12 32 28
Online Purchasing Auctions 18 25 29
Web-Platform for Product Development with
30 19 23
Suppliers
Online Invitation to Tender 19 16 37
Table 4.11 shows the Frequency of Information Technology (IT) tools preferred to fulfil
company‟s industrial procurement expectations. 59 companies preferred “Materials
management module (ERP-System)” IT tool to fulfill their industrial procurement
expectations. While, 48 companies preferred “Reporting & controlling tool”, 37 companies
preferred “Online invitations to tender” and 29 companies preferred “Online purchasing
auctions” IT tool to accomplish their industrial procurement expectations. Likewise, 36
companies preferred “Tool for supplier evaluation”, 28 companies preferred “Catalogue
management tool for indirect goods” and “Web platform for scheduling and planning with
suppliers” , 24 companies preferred “Electronic data interchange (EDI)”, 26 companies
preferred “Contract management tool”, 23 companies preferred “Web platform for product
development with suppliers” and 22 companies preferred “Desktop purchasing of indirect
goods” IT tools to accomplish their industrial procurement expectations.
95
4.1.1.11 Number of Supplier with Whom Business Document Exchanged by Means of

Electronic Data Interchange (EDI) / WEB EDI from Last Six Months
TABLE 4.12: No. of Supplier with whom Business Document

Exchanged by Means of EDI / WEB EDI form last six Months
No. of Supplier Frequency Percent
None 4 5.6%
One o five 3 4.2%
Six to Ten 6 8.3%
Eleven to Forty Nine 20 27.8%
Fifty to Ninety Nine 7 9.7%
Greater than 100 32 44.4%
Total 72 100%
As per Table 4.12, 32 out of 72 Manufacturing Industrial Units have exchanged their
documents with more than 100 suppliers by means of EDI/ Web EDI during the last six
months, 20 out of 72 Manufacturing Industrial Units have exchanged their documents with
Eleven to Forty nine suppliers by means of EDI/ Web EDI from last six months, 7 out of
72 Manufacturing Industrial Units have exchanged their documents with Fifty to Ninety
Nine suppliers by means of EDI/ Web EDI from last six months, 6 out of 72
Manufacturing Industrial Units have exchanged their documents with Six to Ten suppliers
by means of EDI/ Web EDI from last six months. 3 out of 72 Manufacturing Industrial
Units have exchanged their documents with one to five suppliers by means of EDI/ Web
EDI from last six months. 4 out of 72 Manufacturing Industrial Units did not exchange
their documents with suppliers by means of EDI/ Web EDI from last six months.
4.1.1.12 Frequency of Electronic Documents Exchanged with Suppliers More Often
TABLE 4.13: Eelectronic Documents Exchanged with Suppliers More Often

Once in a Once in a Once in 3 Once in 6
Documents Can‟t Say
week month Month Month
Purchase order 79.2 % 15.3 % 1.4 % 0% 4.2 %
Invoice 87.5 % 0% 9.7 % 1.4 % 1.4 %
Order confirmation 69.4 % 22.2 % 1.4 % 0% 6.9 %
Request for quote/bid 33.3 % 27.8 % 26.4 % 4.2 % 8.3 %
Despatch advice 81.9 % 12.5 % 0% 2.8 % 2.8 %
Table 4.13 shows, 79.2 % of manufacturing units have exchanged Purchase Order with
suppliers once in a week. 87.5 % of manufacturing units have exchanged Invoice with
96
suppliers once in a week. 69.4 % of manufacturing units have exchanged Order

confirmation with suppliers once in a week. 33.3 % of manufacturing units have
exchanged Request for quote / bid with suppliers once in a month. 81.9 % of
manufacturing units have exchanged Despatch advice with suppliers once in a week.
4.1.1.13 Frequencies of Methods Used in the Exchange of the Electronic Business

Documents with Suppliers
TABLE 4.14: Methods Used to Exchange Electronic Business Documents with

Suppliers
Responses
Method
Freq Percentage
Fully integrated Solution (EDI) directly with Suppliers 40 55.60%
Fully integrated Solution (EDI) via Business to Business (B2B) Marketplace
15 20.80%
/ transaction platform
WEB Supplier Portal via (B2B) Marketplace / transaction platform (WEB
28 38.90%
EDI)
Company run supplier portal (Web EDI) 23 31.90%
As per Table 4.14, 55.60% manufacturing units have exchanged business documents with
suppliers by fully integrated solution (EDI) directly with the supplier method. 38.90%
manufacturing units have exchanged business documents with suppliers by Web supplier
portal via B2B marketplace/transaction platform (Web EDI) method. 31.90%
manufacturing units have exchanged business documents with suppliers by Company run
supplier portal (Web EDI) method. 20.80% manufacturing units have exchanged business
documents with suppliers by fully integrated solution (EDI) via B2B marketplace
/transaction platform method.
4.1.1.14 Difficulties Faced in E-Procurement Implementation.
TABLE 4.15: Difficulties Faced in E-Procurement Implementation.

Very Somewhat Not Not at all
Parameters Neutral
Difficult Difficult Difficult Difficult
High introduction costs for new
1 21 20 23 7
solutions
Suppliers are Slow to link up with
1 39 13 18 1
Procurement System
Lack of quality of master data 3 15 31 17 6
Difficulties in judging Usefulness and 0 10 20 32 10
97
Potential of new Information

Technology Solutions
Lack of User friendliness and User
3 13 22 26 8
acceptance of Solutions
Solutions only address some of Our
3 6 15 40 8
Procurement processes
Solution do not able to address the
0 12 13 32 15
complexity of our processes
Solutions are not well enough
0 3 22 38 9
integrated (Isolated Applications)
Lack of qualified or skilled staff who
can work with modern procurement 8 12 13 16 23
system
Lack of Consultant expertise in IT for
1 6 23 30 12
Procurement
Table 4.15 shows the Difficulties faced in E-Procurement implementation in selected

manufacturing Companies in Gujarat. 22 companies have faced difficulty in “High
introduction costs for new solutions” in adopting E-Procurement. 40 companies have faced
difficulty in “Suppliers slow to link up with the procurement system” in adopting E-
Procurement. 18 companies have faced difficulty in “Lack of quality of master data” in
adopting E-Procurement. Likewise, 10 companies have faced difficulty in “Difficulty in
judging usefulness and potential of new IT solutions”, 16 companies have faced difficulty
in “Lack of user-friendliness and user-acceptance of solutions”, 9 companies have faced
difficulty in “Solutions only address some of our procurement processes”, 12 companies
have faced difficulty in “Solutions do not address the complexity of our processes”, 3
companies have faced difficulty in “Solutions are not well enough integrated (isolated
applications)”, 20 companies have faced difficulty in “Lack of qualified staff who can
work with modern procurement system” and 7 companies have faced difficulty in
“Consultant expertise is lacking in IT projects for procurement” in adopting E-
Procurement.
98
4.1.1.15 Who Initiate and Drives the Development (Up-Gradation) of IT for

Procurement
TABLE 4.16: Who Initiate and Drives the Development

(Up Gradation) of IT for Procurement
Department Frequency Percentage
Procurement Department 49 68.1 %
Process Leadership 24 33.3 %
Top management 55 76.4 %
IT department 43 59.7 %
Business development department 6 8.3 %
External consultants / software providers 11 15.3 %
Business development department 11 15.3 %
55 Companies have agreed that the “Top management” of the company initiate and drives
the development (up gradation) of IT for procurement, 49 Companies have the same
opinion that the “Procurement department” of the company drives the development of IT
for procurement, 43 Companies have considered that the “IT Department” of the company
initiate the development (up gradation) of IT for procurement. Likewise, 24 Companies
have agreed that the “Process leadership”, 11 Companies have agreed that the “External
consultants/software providers” and “Business development department” and 6 Companies
have agreed that the “Business development department” of the company initiate and
drives the development (up gradation) of IT for procurement.
4.1.1.16 Further Up-Gradation of Information Technology (IT) to Support the

Strategic Procurement Process.
TABLE 4.17: Further Up-Gradation of IT to Support Strategic Procurement Process.

Not Important Not Most
Parameters Neutral Important
at all Important Important
Optimising the Analysis of
0 0 12 43 17
expenditure
Supplier assessment 0 6 8 50 8
Contract management 3 4 15 38 12
Development and review of
0 5 17 23 27
procurement strategy
Negotiation (invitations to
0 8 18 30 16
tender, auctions)
Supplier identification 0 2 21 36 13
99
Table 4.17 shows the further up-gradation of Information Technology (IT) to support the
strategic procurement process in selected manufacturing Companies in Gujarat. 60
Companies have considered the importance of up gradation of Information Technology to
support “Optimising the Analysis of expenditure”, 58 Companies have considered the
importance of up-gradation of Information Technology to support “Supplier assessment”,
50 Companies have considered the importance of up-gradation of Information Technology
to support “Contract Management” and “Development and review of procurement
strategy”, 46 Companies have believed the importance of up-gradation of Information
Technology to support “Negotiation (invitations to tender, auctions)” and 49 Companies
have considered the importance of up-gradation of Information Technology to support
“Supplier identification”.
4.1.1.17 Further Up-Gradation of Information Technology (IT) to Support the

Operative Procurement Process.
TABLE 4.18: Further Up-Gradation of Information Technology (IT) to Support the

Operative Procurement Process.
Not
Not Most
Process Important Neutral Important
Important Important
at all
Order processing of direct goods 0 3 15 43 11
Automated invoice entry processing 0 2 22 27 21
Order processing of indirect goods 0 6 6 43 17
Order processing of services 3 8 20 33 8
Cooperative disposition / planning
1 3 18 42 8
with suppliers
Order processing of investment
0 8 23 30 11
goods
Electronic interchange of business
0 6 15 34 17
documents (EDI)
Cooperative Product development
0 7 12 34 19
with suppliers
Table 4.18 shows the further up-gradation of Information Technology (IT) to support the
operative procurement process in selected manufacturing Companies in Gujarat. 54
Companies have considered the importance of up-gradation of Information Technology to
support “Order processing of direct goods”, 48 Companies have considered the importance
of up-gradation of Information Technology to support “Automated invoice entry
100
processing”, 60 Companies have considered the importance of up-gradation of Information

Technology to support “Order processing of indirect goods”, 41 Companies have
considered the importance of up-gradation of Information Technology to support “Order
processing of services” and “Order processing of investment goods”, 50 Companies have
believed the importance of up-gradation of Information Technology to support
“Cooperative disposition / planning with suppliers”, 51 Companies have considered the
importance of up-gradation of Information Technology to support “Electronic interchange
of business documents (EDI)” and 53 Companies have considered the importance of up-
gradation of Information Technology to support “Cooperative product development with
suppliers”.
4.1.2 Cross Tabulation
Cross Tabulation is the method to understand as to how two different variables are related
to each other. Cross Tabulation is performed on Nominal / Ordinal Variables. It is a tool to
descriptively examine variables and to identify whether there is a relationship between two
variables205.
4.1.2.1 Here, Cross Tabulation is Performed between Types of Industry and Extent to
Which Information Technology (IT) Used to Carry Out the Procurement Functions
Successfully.
TABLE 4.19: Cross Tabulation of the types of Industry – Extent to which

Information Technology (IT) used to carry out the procurement functions
successfully.
Crosstab
Use of IT for procurement
To a
To a To a To a To a very
very
small moderate great great
small
extent extent extent extent
extent
Indust Count 1 0 2 9 6
Chemical
ry % within
&
Based Industry Based 5.60% 0.00% 11.10% 50.00% 33.30%
Petroleum
on on Product
205
“Cross Tabulation” last retrieved dated 21.10.2016 from
http://www.socsci.uci.edu/~schofer/2005soc5811/pub/Lecture%2015%20CROSSTABS%201.ppt.
101
Produ % within Use of

ct IT for 33.30% 0.00% 13.30% 31.00% 27.30%
procurement
Count 1 0 1 1 2
% within
Industry Based 20.00% 0.00% 20.00% 20.00% 40.00%
Automotiv
on Product
e
% within Use of
IT for 33.30% 0.00% 6.70% 3.40% 9.10%
procurement
Count 0 0 2 2 0
% within
Industry Based 0.00% 0.00% 50.00% 50.00% 0.00%
Pharmaceu on Product
tical
% within Use of
IT for 0.00% 0.00% 13.30% 6.90% 0.00%
procurement
Count 1 0 3 3 1
% within
Industry Based 12.50% 0.00% 37.50% 37.50% 12.50%
Electrical on Product
% within Use of
IT for 33.30% 0.00% 20.00% 10.30% 4.50%
procurement
Count 0 0 1 2 4
% within
Industry Based 0.00% 0.00% 14.30% 28.60% 57.10%
Textile on Product
% within Use of
IT for 0.00% 0.00% 6.70% 6.90% 18.20%
procurement
Count 0 2 2 8 6
Engineerin % within
g& Industry Based 0.00% 11.10% 11.10% 44.40% 33.30%
Machine on Product
Tools % within Use of
IT for 0.00% 66.70% 13.30% 27.60% 27.30%
procurement
Count 0 0 0 0 1
% within
Industry Based 0.00% 0.00% 0.00% 0.00% 100.00%
Fertilizer on Product
% within Use of
IT for 0.00% 0.00% 0.00% 0.00% 4.50%
procurement
Count 0 1 4 4 2
Others % within
Industry Based 0.00% 9.10% 36.40% 36.40% 18.20%
on Product
102
% within Use of
IT for 0.00% 33.30% 26.70% 13.80% 9.10%
procurement
Count 3 3 15 29 22
% within
Industry Based 4.20% 4.20% 20.80% 40.30% 30.60%
Total on Product
% within Use of
100.00 100.00 100.00
IT for 100.00% 100.00%
% % %
procurement
FIGURE 4.1: Cross Tabulation of the types of Industry – Extent to which

Information Technology (IT) used to carry out the procurement functions
successfully.
The observed frequencies in the cross tabulation matrix, Chemical & Petroleum Industrial
Units have used IT at great extent to carry out the Procurement function (88.30%).
Automotive Industrial Units have used IT at great extent to carry out the Procurement
function (60.00%). Pharmaceutical Industrial Units have used IT at great extent to carry
out the Procurement function (50.00%). Electrical Industrial Units have used IT at great
extent to carry out the Procurement function (50.00%). Textile Industrial Units have used
IT at great extent to carry out the Procurement function (87.70%). Engineering & Machine
Industrial Units have used IT at great extent to carry out the Procurement function
(77.70%). Fertilizer Industrial Units have used IT at a very great extent to carry out the
Procurement function (100%).
103
4.1.2.2 Cross Tabulation Performed Between the Ownership of Company and Extent
to Which IT Used to Carry out Procurement Functions Successfully.
TABLE 4.20: Cross Tabulation of the Ownership of the Company – Extent to Which
IT Used to Carry Out Procurement Functions Successfully.
Use Of IT For Procurement

To a To a
To a To a To a
very very
small moderate great
small great
extent extent extent
extent extent
Count 1 1 4 9 6
% within
Public 4.80% 4.80% 19.00% 42.90% 28.60%
Ownership Firm
Sector
% within Use of IT
33.30% 33.30% 26.70% 31.00% 27.30%
for procurement
Count 2 1 11 19 13
Privat % within
Owner 4.30% 2.20% 23.90% 41.30% 28.30%
e Ownership Firm
ship
Firm Sector % within Use of IT
66.70% 33.30% 73.30% 65.50% 59.10%
for procurement
Count 0 1 0 1 3
% within
Joint 0.00% 20.00% 0.00% 20.00% 60.00%
Ownership Firm
Sector
% within Use of IT
0.00% 33.30% 0.00% 3.40% 13.60%
for procurement
Count 3 3 15 29 22
% within
4.20% 4.20% 20.80% 40.30% 30.60%
Total Ownership Firm
% within Use of IT
100.00% 100.00% 100.00% 100.00% 100.00%
for procurement
104
FIGURE 4.2: Cross Tabulation of the Ownership of the Company – Extent to Which
IT Used to Carry Out the Procurement Functions Successfully.
The observed frequencies in the cross tabulation matrix, Public Sector Company has used
IT to a great extent to carry out the Procurement function (71.50%). Private Sector
Company has used IT to a great extent to carry out the Procurement function (69.60%).
Joint Sector Company has used IT to a great extent to carry out the Procurement function
(80.00%).
4.1.2.3 Cross Tabulation Performed Between Size of The Company (Based On

Investment) and Extent to Which IT Used to Carry Out the Procurement Functions.
TABLE 4.21: Cross Tabulation: Size of the Company (Based on Investment) – Extent
to Which IT Used to Carry Out the Procurement Functions.
Use Of IT For Procurement
To a
very
small
extent
Size Count 0 1 0 1 0
of Investment % within Size of
the between 25 the company -
com 0.00% 50.00% 0.00% 50.00% 0.00%
lakh to 5 Based on
pany crore Investment
- rupees % within Use of
Base IT for 0.00% 33.30% 0.00% 3.40% 0.00%
d on procurement
Inve Investment Count 1 0 5 4 0
105
stme between 5 % within Size of

nt crore to 10 the company -
crore 10.00% 0.00% 50.00% 40.00% 0.00%
Based on
rupees Investment
% within Use of
IT for 33.30% 0.00% 33.30% 13.80% 0.00%
procurement
Count 2 2 10 24 22
% within Size of
the company -
More than 3.30% 3.30% 16.70% 40.00% 36.70%
Based on
10 crore
Investment
Investment
% within Use of
IT for 66.70% 66.70% 66.70% 82.80% 100.00%
procurement
Count 3 3 15 29 22
% within Size of
the company -
4.20% 4.20% 20.80% 40.30% 30.60%
Based on
Total
Investment
% within Use of
100.00 100.00
IT for 100.00% 100.00% 100.00%
% %
procurement
FIGURE 4.3: Cross Tabulation: Size Of The Company (Based On Investment) –

Extent To Which IT Used To Carry Out The Procurement Functions.
106
The observed frequencies in the cross tabulation matrix, Small Scale Company (which has
Investment between 25 lakh rupees to 5 Crore rupees) have used IT at great extent to carry
out the Procurement function (50.00%). Medium Scale Company (which has Investment
between 5 Crore to 10 Crore rupees) have used IT at moderate extent to carry out the
Procurement function (50.00%). Large Company (which has More than 10 Crore rupees
Investment) have used IT at great extent to carry out the Procurement function (76.70%).
4.1.2.4 Cross Tabulation Performed Between Size of the Company (Based on

Employees) and Extent to Which IT Used to Carry Out Procurement Functions.
TABLE 4.22: Cross Tabulation: Size of the Company (Based on Employees) – Extent
to Which IT Used to Carry Out the Procurement Functions.
Use of IT for Procurement
To a
very
small
extent
Count 1 1 5 4 1
50 to % within Size of the
Size 249 company - Based on 8.30% 8.30% 41.70% 33.30% 8.30%
of the emplo No. of Employees
compa yees % within Use of IT 33.30
33.30% 33.30% 13.80% 4.50%
ny - for procurement %
Based Count 2 2 10 25 21
on No. More % within Size of the
of than company - Based on 3.30% 3.30% 16.70% 41.70% 35.00%
Emplo 249 No. of Employees
yees emplo
yees % within Use of IT 66.70
66.70% 66.70% 86.20% 95.50%
for procurement %
Count 3 3 15 29 22
% within Size of the
company - Based on 4.20% 4.20% 20.80% 40.30% 30.60%
Total No. of Employees
% within Use of IT 100.00 100.00
100.00% 100.00% 100.00%
for procurement % %
107
FIGURE 4.4: Cross Tabulation: Size of the Company (Based on No. of Employees) –
Extent to Which IT Used to Carry Out Procurement Functions.
The observed frequencies in the cross tabulation matrix, Small Scale Company (which has
50 to 249 employees) has used IT at great extent to carry out the Procurement function
(41.60%). Small Scale Company (more than 249 employees) has used IT at great extent to
carry out the Procurement function (76.70%).
4.1.2.5 Cross Tabulation Performed Between the Types of Industry and Information
Technology (IT) Solutions Used For Operative Order Processing
TABLE 4.23: Cross Tabulation: Types of Industry –IT Solutions used for Operative
Order processing
Crosstab
SAP
BBP/EBP
SAP
(The SAP Purcha
SAP SRM
solutions sing Produ
MM (Suppli Oracle,
Enterprise Card ct
(Materia er People
Buyer (VISA, develo
ls Relatio Soft, Ariba ERP
Professional Airplus pment
Manage nship J.D.Ed
(EBP) and , in
ment Manag wards
Its Amexc house
Module) ement
preceding o ...)
)
version
(BBP)
Ind Che Count 11 1 3 4 1 0 2 7
ust mic % within
ry al Industry 16.70 22.20 11.10 38.9
Ba & 61.10% 5.60% 5.60% 0.00%
Based on % % % 0%
sed Petr Product
108
on ole % within
Pro um SAP MM
duc (Materials 21.40 66.70 25.00 20.00 18.4
29.70% 11.10% 0.00%
t Manageme % % % % 0%
nt
Module)
Count 3 2 1 0 0 0 1 2
% within
Industry 20.00 20.00 40.0
60.00% 40.00% 0.00% 0.00% 0.00%
Aut Based on % % 0%
om Product
otiv % within
e SAP MM
(Materials 10.00 5.30
8.10% 22.20% 7.10% 0.00% 0.00% 0.00%
Manageme % %
nt
Module)
Count 1 1 1 0 1 0 1 3
% within
Industry 25.00 25.00 25.00 75.0
25.00% 25.00% 0.00% 0.00%
Pha Based on % % % 0%
rma Product
ceut % within
ical SAP MM
(Materials 25.00 10.00 7.90
2.70% 11.10% 7.10% 0.00% 0.00%
Manageme % % %
nt
Module)
Count 2 0 0 0 0 1 0 7
% within
Industry 12.50 87.5
25.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Based on % 0%
Ele Product
ctri % within
cal SAP MM
(Materials 50.00 18.4
5.40% 0.00% 0.00% 0.00% 0.00% 0.00%
Manageme % 0%
nt
Module)
Count 6 2 1 0 0 0 0 4
% within
Industry 14.30 57.1
85.70% 28.60% 0.00% 0.00% 0.00% 0.00%
Based on % 0%
Tex Product
tile % within
SAP MM
(Materials 10.5
16.20% 22.20% 7.10% 0.00% 0.00% 0.00% 0.00%
Manageme 0%
nt
Module)
Eng Count 8 1 4 1 1 1 3 10
inee % within
ring Industry 22.20 16.70 55.6
& 44.40% 5.60% 5.60% 5.60% 5.60%
Based on % % 0%
Ma Product
109
chi % within
ne SAP MM
Too (Materials 28.60 16.70 25.00 50.00 30.00 26.3
21.60% 11.10%
ls Manageme % % % % % 0%
nt
Module)
Count 1 0 0 0 0 0 0 0
% within
Industry 100.00 0.00
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Based on % %
Fert Product
iliz % within
er SAP MM
(Materials 0.00
2.70% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Manageme %
nt
Module)
Count 5 2 4 1 1 0 3 5
% within
Industry 36.40 27.30 45.5
45.50% 18.20% 9.10% 9.10% 0.00%
Based on % % 0%
Oth Product
ers % within
SAP MM
(Materials 28.60 16.70 25.00 30.00 13.2
13.50% 22.20% 0.00%
Manageme % % % % 0%
nt
Module)
Count 37 9 14 6 4 2 10 38
% within
Industry 19.40 13.90 52.8
51.40% 12.50% 8.30% 5.60% 2.80%
Based on % % 0%
Product
Total % within
SAP MM
(Materials 100.00 100.00 100.00 100.00 100.00 100.
100.00% 100.00%
Manageme % % % % % 00%
nt
Module)
The observed frequencies in the cross tabulation matrix, one can infer that: IT solutions are
mainly used for operative order processing in Chemical & Petroleum Industry are SAP
MM (materials management module) (61.10% of them used) and ERP (38.90% of them
used); IT solutions are mainly used for operative order processing in Automotive Industry
are SAP MM (materials management module) (60 % of them used), SAP BBP/EBP (The
SAP solutions Enterprise Buyer Professional (EBP) and its preceding version (BBP) (40.00
% of them used) and ERP (40.00% of them used); IT solutions are mainly used for
operative order processing in Pharmaceutical Industry is ERP (75.0 % of them used); IT
solutions are mainly used for operative order processing in Electrical Industry is ERP
110
(87.5.0 % of them used); IT solutions are mainly used for operative order processing in
Textile Industry are SAP MM (materials management module) (85.70 % of them used) and
ERP (57.10% of them used); IT solutions are mainly used for operative order processing
in Engineering & Machine Industry are ERP (55.60 % of them used) and SAP MM
(materials management module) (44.40%); IT solutions are mainly used for operative order
processing in Fertilizer Industry is SAP MM (materials management module) (100 % of
them used); IT solutions are mainly used for operative order processing in Other Industries
are SAP MM (materials management module) and ERP (45.50 % of them used).
4.1.2.6 Cross Tabulation Performed Between Ownership of the Firm and Information
Technology (IT) Solutions Used for Operative Order Processing.
TABLE 4.24: Cross Tabulation of the Ownership of the Firm –IT Solutions Used For
Operative Order Processing
Crosstab
SAP
Purch
BBP/EBP
SAP asing
(The SAP SAP
MM Card Prod
solutions SRM Oracle,
(Materi (VIS uct
Enterprise (Supplier People
als A, devel
Buyer Relation Soft, Ariba ERP
Manage Airpl opme
Professional ship J.D.Ed
ment us, nt in
(EBP) and Its Manage wards
Module Ame house
preceding ment )
) xco
version
...)
(BBP)
Count 13 6 4 3 2 0 3 14
% within
19.00 0.00 14.30 66.7
Ownership 61.90% 28.60% 14.30% 9.50%
Pub % % % 0%
Firm
lic
% within
O Sec
SAP MM
w tor 28.60 50.00 0.00 30.00 36.8
(Materials 35.10% 66.70% 50.00%
ne % % % % 0%
Managemen
rs
t Module)
hi
Count 20 2 7 2 2 2 5 24
p
Fi % within
15.20 4.30 10.90 52.2
r Ownership 43.50% 4.30% 4.30% 4.30%
Priv % % % 0%
m Firm
ate
% within
Sec
SAP MM
tor 50.00 50.00 100.0 50.00 63.2
(Materials 54.10% 22.20% 33.30%
% % 0% % 0%
Managemen
t Module)
111
Count 4 1 3 1 0 0 2 0
% within
60.00 0.00 40.00 0.00
Ownership 80.00% 20.00% 20.00% 0.00%
Join % % % %
Firm
t
% within
Sec
SAP MM
tor 21.40 0.00 20.00 0.00
(Materials 10.80% 11.10% 16.70% 0.00%
% % % %
Managemen
t Module)
Count 37 9 14 6 4 2 10 38
% within
19.40 2.80 13.90 52.8
Ownership 51.40% 12.50% 8.30% 5.60%
% % % 0%
Firm
Total % within
SAP MM
100.00 100.0 100.00 100.0 100.0 100.
(Materials 100.00% 100.00%
% 0% % 0% 0% 00%
Managemen
t Module)
The observed frequencies in the cross tabulation matrix, IT solution majorly used for
operative order processing in Public Sector Company are ERP (66.70% of them used) and
SAP MM (materials management module) (61.90% of them used). IT solutions used for
operative order processing in Private Sector Company are ERP (52.20% of them used) and
SAP MM (materials management module) (43.50% of them used). IT solutions used for
operative order processing in Joint Sector Company are SAP MM (materials management
module) (80.00% of them used), Purchasing Card (VISA, Airplus, Amexco ...) (60.00%)
and Product development in house (40.00%).
4.1.2.7 Cross Tabulation Performed Between Size of the Company (Based on

Investment) and IT Solutions Used for Operative Order Processing.
TABLE 4.25: Cross Tabulation: Size of the Company (Based on Investment)

– IT Solutions used for Operative Order Processing
Crosstab
Purch
SAP SAP BBP/EBP asing SAP
Oracl
MM (The SAP Card SRM Prod
e,
(Materi solutions (VIS (Suppli uct
Peopl
als Enterprise Buyer A, er devel
eSoft, Ariba ERP
Manage Professional Airpl Relatio opme
J.D.E
ment (EBP) and Its us, nship nt in
dwar
Module preceding Ame Manag house
ds
) version (BBP) xco ement )
...)
Si Inves Count 0 0 1 0 0 0 1 1
112
ze tment % within
of betw Size of the
een company - 50.00 0.00 0.00 50.00 50.0
0.00% 0.00% 0.00%
th 25 Based on % % % % 0%
e lakh Investmen
co to 5 t
m crore % within
pa rupee SAP MM
ny s (Materials 7.10 0.00 0.00 10.00 2.60
0.00% 0.00% 0.00%
- Managem % % % % %
B ent
as Module)
ed Count 1 1 4 0 0 0 2 8
on
% within
In Inves Size of the
ve tment company - 40.00 0.00 0.00 20.00 80.0
st betw 10.00% 10.00% 0.00%
Based on % % % % 0%
m een 5 Investmen
en crore t
t to 10 % within
crore SAP MM
rupee (Materials 28.60 0.00 0.00 20.00 21.1
s 2.70% 11.10% 0.00%
Managem % % % % 0%
ent
Module)
Count 36 8 9 6 4 2 7 29
% within
Size of the
More company - 15.00 10.00 6.70 3.30 11.70 48.3
60.00% 13.30%
than Based on % % % % % 0%
10 Investmen
crore t
Inves % within
tment SAP MM
(Materials 64.30 100.00 100.0 100.0 70.00 76.3
97.30% 88.90%
Managem % % 0% 0% % 0%
ent
Module)
Count 37 9 14 6 4 2 10 38
% within
Size of the
company - 19.40 5.60 2.80 13.90 52.8
51.40% 12.50% 8.30%
Based on % % % % 0%
Investmen
Total t
% within
SAP MM
(Materials 100.00 100.0 100.00 100.0 100.0 100.0 100.
100.00%
Managem % 0% % 0% 0% 0% 00%
ent
Module)
The observed frequencies in the cross tabulation matrix, IT solution majorly used for
operative order processing in Small Scale Company (which has investment between 25
lakh to 5 coroe rupees) are Purchasing Card (VISA, Airplus, Amexco ...) (50% of them
113
used), Product development in house (50% of them used) and ERP (50% of them used). IT
solution majorly used for operative order processing in Medium Scale Company (which
has investment between 5 Crore to 10 Crore rupees) are Purchasing Card (VISA, Airplus,
Amexco ...) (40% of them used) and ERP (80% of them used). IT solution majorly used for
operative order processing in Large Scale Company (which has investment more than 10
Crore rupees) are SAP MM (materials management module) (60% of them used) and ERP
(48.30% of them used)
4.1.2.8 Cross Tabulation Performed Between the Size of the Company (Based On
Number Of Employees) and IT Solutions Used for Operative Order Processing.
TABLE 4.26: Cross Tabulation: Size of the Company (Based on Number of

Employees –IT Solutions Used for Operative Order Processing
Crosstab
SAP
SAP
BBP/EBP
SAP SRM Prod
(The SAP Oracl
MM Purchasi (Supp uct
solutions e,
(Materi ng Card lier deve
Enterprise Peopl
als (VISA, Relati lopm
Buyer eSoft, Ariba ERP
Manage Airplus, onshi ent
Professional J.D.E
ment Amexco p in
(EBP) and Its dwar
Module ...) Mana hous
preceding ds
) geme e
version
nt )
(BBP)
Count 3 1 4 0 0 0 3 7
% within
Size of the
Siz company -
0.00 0.00 25.0 58.30
e of Based on 25.00% 8.30% 33.30% 0.00%
50 to % % 0% %
the No. of
co 249 Employee
mp empl s
any oyees % within
- SAP MM
Bas (Materials 0.00 0.00 30.0 18.40
8.10% 11.10% 28.60% 0.00%
ed Managem % % 0% %
on ent
No. Module)
of Count 34 8 10 6 4 2 7 31
Em % within
plo More
than Size of the
yee company -
s 249 10.00 6.70 3.30 11.7 51.70
empl Based on 56.70% 13.30% 16.70%
% % % 0% %
oyees No. of
Employee
s
114
% within
SAP MM
(Materials 100.0 100.0 100.0 70.0 81.60
91.90% 88.90% 71.40%
Managem 0% 0% 0% 0% %
ent
Module)
Count 37 9 14 6 4 2 10 38
% within
Size of the
company -
5.60 2.80 13.9 52.80
Based on 51.40% 12.50% 19.40% 8.30%
% % 0% %
No. of
Total Employee
s
% within
SAP MM
(Materials 100.00 100.00 100.0 100.0 100.0 100. 100.0
100.00%
Managem % % 0% 0% 0% 00% 0%
ent
Module)
IT solutions majorly used for operative order processing in large scale company (which has
more than 250 employees) are SAP MM (materials management module) (56.70% of them
used) and ERP (51.70% of them used). IT solutions majorly used for operative order
processing in Medium Scale Company (which has 50 to 249 employees) are ERP (58.30%
of them used) and Purchasing Card (VISA, Airplus, Amexco ...) (33.30% of them used).
4.1.2.9 Cross Tabulation Performed Between the Types of Industry and Number of
Supplier with Whom Business Document Exchanged by Means of EDI) / WEB EDI
from Last Six Months
TABLE 4.27: Cross Tabulation: Types of Industry – No. of Suppliers with Whom
Business Document Exchanged by Means of EDI / WEN EDI from Last Six Months
Crosstab
No. of Suppliers with whom Business Document exchanged by
means of EDI / WEN EDI from last six Months
Eleven Fifty to
One o Six to Greater
None to Forty Ninety
five Ten than 100
Nine Nine
Ind Chemica Count 0 1 1 6 0 10
ustr l& % within Industry
y Petroleu 0.00% 5.60% 5.60% 33.30% 0.00% 55.60%
Based on Product
115
Bas m % within No. of

ed Suppliers with
on whom Business
Pro Document
duc 0.00% 33.30% 16.70% 30.00% 0.00% 31.30%
exchanged by
t means of EDI /
WEN EDI from
last six Months
Count 0 1 0 2 0 2
% within Industry
0.00% 20.00% 0.00% 40.00% 0.00% 40.00%
Based on Product
% within No. of
Automot Suppliers with
ive whom Business
Document
0.00% 33.30% 0.00% 10.00% 0.00% 6.30%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 1 0 0 2 1 0
% within Industry
25.00% 0.00% 0.00% 50.00% 25.00% 0.00%
Based on Product
% within No. of
Pharmac Suppliers with
eutical whom Business
Document
25.00% 0.00% 0.00% 10.00% 14.30% 0.00%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 0 1 2 1 2 2
% within Industry
0.00% 12.50% 25.00% 12.50% 25.00% 25.00%
Based on Product
% within No. of
Electrica Suppliers with
l whom Business
Document
0.00% 33.30% 33.30% 5.00% 28.60% 6.30%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 0 0 0 1 1 5
% within Industry
0.00% 0.00% 0.00% 14.30% 14.30% 71.40%
Based on Product
% within No. of
Suppliers with
Textile whom Business
Document
0.00% 0.00% 0.00% 5.00% 14.30% 15.60%
exchanged by
means of EDI /
WEN EDI from
last six Months
Engineer Count 1 0 2 5 3 7
116
ing & % within Industry

Machine 5.60% 0.00% 11.10% 27.80% 16.70% 38.90%
Based on Product
Tools
% within No. of
Suppliers with
whom Business
Document
25.00% 0.00% 33.30% 25.00% 42.90% 21.90%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 0 0 0 0 0 1
% within Industry
0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Based on Product
% within No. of
Fertilizer Suppliers with
whom Business
Document
0.00% 0.00% 0.00% 0.00% 0.00% 3.10%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 2 0 1 3 0 5
% within Industry
18.20% 0.00% 9.10% 27.30% 0.00% 45.50%
Based on Product
% within No. of
Others Suppliers with
whom Business
Document
50.00% 0.00% 16.70% 15.00% 0.00% 15.60%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 4 3 6 20 7 32
% within Industry
5.60% 4.20% 8.30% 27.80% 9.70% 44.40%
Based on Product
% within No. of
Total Suppliers with
whom Business
Document 100.00 100.00 100.00 100.00 100.00
100.00%
exchanged by % % % % %
means of EDI /
WEN EDI from
last six Months
117
FIGURE 4.5: Cross Tabulation: Types of Industry – No. of Suppliers with Whom
Business Document Exchanged by Means of EDI / WEN EDI from Last Six Months
The observed frequencies in the cross tabulation matrix, Chemical & Petroleum Industry
have exchanged business documents by means of EDI/Web EDI from last six months with
more than 100 suppliers (56.60% of them have exchanged). Automotive Industry have
exchanged business documents by means of EDI/Web EDI from last six months with more
than 100 Supplier (40.00% of them have exchanged). Pharmaceutical Industry have
exchanged business documents by means of EDI/Web EDI from last six months with
eleven to forty nine Suppliers (50.00% of them have exchanged). Electrical Industry have
greater than 100 Suppliers (25.00% of them have exchanged). Textile Industry have
greater than 100 Suppliers (71.40% of them have exchanged). Engineering and Machine
Industry have exchanged business documents by means of EDI/Web EDI from last six
months with greater than 100 Suppliers (38.90% of them have exchanged). Fertilizer
Industry have exchanged business documents by means of EDI/Web EDI from last six
months with greater than 100 Suppliers (100% of them have exchanged). Others Industry
greater than 100 Suppliers (45.5% of them have exchanged).
118
4.1.2.10 Cross Tabulation Performed Between Ownership of the Firms and No. of
Supplier with Whom Business Document Exchanged by Means of EDI / WEB EDI
from Last Six Months
TABLE 4.28: Cross Tabulation: Ownership of the Firms – No. of Suppliers with
Whom Business Document Exchanged by Means of EDI / WEB EDI
Crosstab
No. of Suppliers with whom Business Document exchanged by means
of EDI / WEN EDI from last six Months
Eleven to Fifty to
None Forty Ninety
five Ten than 100
Nine Nine
Count 1 1 1 6 2 10
% within
4.80% 4.80% 4.80% 28.60% 9.50% 47.60%
Ownership Firm
Publi % within No. of
c Suppliers with
Secto whom Business
r Document
25.00% 33.30% 16.70% 30.00% 28.60% 31.30%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 3 2 4 14 5 18
% within
6.50% 4.30% 8.70% 30.40% 10.90% 39.10%
Ownership Firm
Ow % within No. of
Priva
ners Suppliers with
te
hip whom Business
Secto
Fir Document
r 75.00% 66.70% 66.70% 70.00% 71.40% 56.30%
m exchanged by
means of EDI /
WEN EDI from
last six Months
Count 0 0 1 0 0 4
% within
Ownership Firm
0.00% 0.00% 20.00% 0.00% 0.00% 80.00%
% within No. of
Joint Suppliers with
Secto whom Business
r Document
0.00% 0.00% 16.70% 0.00% 0.00% 12.50%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 4 3 6 20 7 32
Total % within
5.60% 4.20% 8.30% 27.80% 9.70% 44.40%
Ownership Firm
119
% within No. of
Suppliers with
whom Business
Document
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
exchanged by
means of EDI /
WEN EDI from
last six Months
FIGURE 4.6: Cross Tabulation: Ownership of the Firms – No. of Suppliers with
Whom Business Document Exchanged by Means of EDI / WEB EDI.
The observed frequencies in the cross tabulation matrix, Public Sector Company have
Greater than 100 Supplier (47.60% of them have exchanged). Private Sector Company
Greater than 100 Supplier (39.10% of them have exchanged). Joint Sector Company have
Greater than 100 Supplier (80.00% of them have exchanged).
120
4.1.2.11 Cross Tabulation Performed Between Size of the Firms (Based On

Investment) and No. of Supplier with Whom Business Document Exchanged By
Means of EDI / WEB EDI from Last Six Months.
Table 4.29: Cross Tabulation: Size of the Firm (Based on Investment) – No. of
Suppliers with Whom Business Document Exchanged by Means of EDI / WEB EDI
Crosstab
Eleven Fifty to
five Ten than 100
Nine Nine
Count 0 0 1 0 1 0
company - Based on 0.00% 0.00% 50.00% 0.00% 50.00% 0.00%
Invest
Investment
ment
% within No. of
betwee
Suppliers with
n 25
whom Business
lakh to
Document
5 crore 0.00% 0.00% 16.70% 0.00% 14.30% 0.00%
exchanged by
rupees
means of EDI /
WEN EDI from last
six Months
Count 3 1 1 3 1 1
Size % within Size of the
of Invest company - Based on 30.00% 10.00% 10.00% 30.00% 10.00% 10.00%
the ment Investment
com betwee % within No. of
pany n5 Suppliers with
- crore whom Business
Base to 10 Document
d on crore 75.00% 33.30% 16.70% 15.00% 14.30% 3.10%
exchanged by
Inves rupees means of EDI /
tmen
WEN EDI from last
t
six Months
Count 1 2 4 17 5 31
company - Based on 1.70% 3.30% 6.70% 28.30% 8.30% 51.70%
More Investment
than 10 % within No. of
crore Suppliers with
Invest whom Business
ment Document
25.00% 66.70% 66.70% 85.00% 71.40% 96.90%
exchanged by
means of EDI /
WEN EDI from last
six Months
Count 4 3 6 20 7 32
Total % within Size of the
company - Based on 5.60% 4.20% 8.30% 27.80% 9.70% 44.40%
Investment
121
% within No. of
Suppliers with
whom Business
Document
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
exchanged by
means of EDI /
WEN EDI from last
six Months
FIGURE 4.7: Cross Tabulation: Size of the Firms (Based on Investment) –No. of
Suppliers with Whom Business Document Exchanged by Means Of EDI / WEB EDI
The observed frequencies in the cross tabulation matrix: Small Scale Company (which has
investment between 25 lakh to 5 Crore rupees) have exchanged business documents by
means of EDI/Web EDI from last six months with fifty to Ninety nine Suppliers (50.00%
of them have exchanged). Medium Scale Company (which has investment between 5
Crore to 10 Crore rupees) have exchanged business documents by means of EDI/Web EDI
from last six months with fifty to Ninety nine Supplier (50.00% of them have exchanged).
Large Scale Company (which has investment greater than 10 Crore rupees) have
greater than 100 Supplier (51.70% of them have exchanged).
122
4.1.2.12 Cross Tabulation Performed Between Size of the Firms (Based On No. of
Employees) and No. of Supplier with Whom Business Document Exchanged by
Means of EDI / WEB EDI from Last Six Months.
TABLE 4.30: Cross Tabulation: Size of the Firm (Based on No. of Employees) – No.
of Suppliers with Whom Business Document Exchanged by Means of EDI / WEB EDI
Crosstab
Eleven Fifty to
five Ten than 100
Nine Nine
Count 3 1 1 4 2 1
% within Size of
the company -
25.00% 8.30% 8.30% 33.30% 16.70% 8.30%
Based on No. of
Employees
50 to
249 % within No. of
empl Suppliers with
oyees whom Business
Document
75.00% 33.30% 16.70% 20.00% 28.60% 3.10%
Size of exchanged by
the means of EDI /
company WEN EDI from
- Based last six Months
on No.
Count 1 2 5 16 5 31
of
Employe % within Size of
es the company -
1.70% 3.30% 8.30% 26.70% 8.30% 51.70%
Based on No. of
More Employees
than % within No. of
249 Suppliers with
empl whom Business
oyees Document
25.00% 66.70% 83.30% 80.00% 71.40% 96.90%
exchanged by
means of EDI /
WEN EDI from
last six Months
Count 4 3 6 20 7 32
% within Size of
the company -
5.60% 4.20% 8.30% 27.80% 9.70% 44.40%
Based on No. of
Employees
% within No. of
Total Suppliers with
whom Business
Document
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
exchanged by
means of EDI /
WEN EDI from
last six Months
123
FIGURE 4.8: Cross Tabulation: Size of the Firms (Based on No. of Employees) –No.
of Suppliers with Whom Business Document Exchanged by Means Of EDI / WEB
EDI
The observed frequencies in the cross tabulation matrix, Medium Scale Company (which
has 50 to 249 employees) have exchanged business documents by means of EDI/Web EDI
from last six months with Eleven to Forty Nine Suppliers (33.30% of them have
exchanged). Large Scale Company (which has more than 250 employees) have exchanged
business documents by means of EDI/Web EDI from last six months with greater than 100
Supplier (51.70% of them have exchanged).
4.1.2.13 Cross Tabulation Performed Between Types of Industry and Electronic

Documents Exchanged with Suppliers More Often.
TABLE 4.31: Cross Tabulation: Types of Industry – Electronic Documents

Exchanged With Suppliers More Often
Crosstab
Purcha Order
Despatch
se Invoice Confirm Request for quote/bid
advice
order ation
Once
Once Once
Once in Once in Once in in Once in
in a in a
a week a week a week three a week
week month
months
Count 14 15 13 8 5 4 16
Indu % within
stry Chemica Industry 77.80 44.40 27.80 22.20
83.30% 72.20% 88.90%
Base l& Based on % % % %
d on Petroleu Product
Prod m % within
uct 33.30 25.00 21.10
Purchase 24.60% 23.80% 26.00% 27.10%
% % %
order
124
Count 5 4 4 2 2 1 5
% within
Industry 100.00 40.00 40.00 20.00
80.00% 80.00% 100.00%
Automot Based on % % % %
ive Product
% within
10.00
Purchase 8.80% 6.30% 8.00% 8.30% 5.30% 8.50%
%
order
Count 2 3 3 1 0 3 3
% within
Industry 50.00 25.00 75.00
75.00% 75.00% 0.00% 75.00%
Pharmac Based on % % %
eutical Product
% within
15.80
Purchase 3.50% 4.80% 6.00% 4.20% 0.00% 5.10%
%
order
Count 6 7 5 2 3 1 5
% within
Industry 75.00 25.00 37.50 12.50
Electrica 87.50% 62.50% 62.50%
Based on % % % %
l Product
% within
15.00
Purchase 10.50% 11.10% 10.00% 8.30% 5.30% 8.50%
%
order
Count 6 7 6 2 4 1 7
% within
Industry 85.70 100.00 28.60 57.10 14.30
85.70% 100.00%
Based on % % % % %
Textile
Product
% within
20.00
Purchase 10.50% 11.10% 12.00% 8.30% 5.30% 11.90%
%
order
Count 14 17 9 5 4 5 13
% within
Engineer Industry 77.80 27.80 22.20 27.80
94.40% 50.00% 72.20%
ing & Based on % % % %
Machine Product
Tools % within
20.80 20.00 26.30
Purchase 24.60% 27.00% 18.00% 22.00%
% % %
order
Count 1 1 1 1 0 0 1
% within
Industry 100.00 100.00 100.00 100.00
0.00% 0.00% 100.00%
Based on % % % %
Fertilizer
Product
% within
Purchase 1.80% 1.60% 2.00% 4.20% 0.00% 0.00% 1.70%
order
Count 9 9 9 3 2 4 9
% within
Others Industry 81.80 27.30 18.20 36.40
81.80% 81.80% 81.80%
Based on % % % %
Product
125
% within
12.50 10.00 21.10
Purchase 15.80% 14.30% 18.00% 15.30%
% % %
order
Count 57 63 50 24 20 19 59
% within
Industry 33.30 27.80 26.40
79.20% 87.50% 69.40% 81.90%
Based on % % %
Total
Product
% within
100.00 100.00 100.00 100.00 100.00
Purchase 100.00% 100.00%
% % % % %
order

The observed frequency in the cross tabulation matrix:
Chemical and Petroleum Industry has exchanged Purchase order once in a week (77.80%)
with suppliers, Invoice once in a week (83.30%) with suppliers, Order Confirmation once
in a week (72.20%) with suppliers, Request for quote/bid once in a week (44.40%) with
suppliers and Despatch advice once in a week (89.90%) with suppliers. Automotive
Industry has exchanged Purchase order once in a week (100%) with suppliers, Invoice
once in a week (80%) with suppliers, Order Confirmation once in a week (80%) with
suppliers, Request for quote/bid once in a week (40%) with suppliers and Despatch advice
once in a week (100%) with suppliers. Pharmaceutical Industry has exchanged Purchase
order once in a week (50% of them) with suppliers, Invoice once in a week (75%) with
suppliers, Order Confirmation once in a week (75%) with suppliers, Request for quote/bid
once in three months (75%) with suppliers and Despatch advice once in a week (75%) with
suppliers. Electrical Industry has exchanged Purchase order once in a week (75.00% of
them) with suppliers, Invoice once in a week (87.50%) with suppliers, Order Confirmation
once in a week (62.50%) with suppliers, Request for quote/bid once in a month (37.50%)
with suppliers and Despatch advice once in a week (62.50%) with suppliers. Textile
Industry has exchanged Purchase order once in a week (85.70% of them) with suppliers,
Invoice once in a week (100%) with suppliers, Order Confirmation once in a week
(85.70%) with suppliers, Request for quote/bid once in a month (57.10%) with suppliers
and Despatch advice once in a week (100%) with suppliers. Engineering and Machine
tools Industry has exchanged Purchase order once in a week (77.80% of them) with
suppliers, Invoice once in a week (94.40%) with suppliers, Order Confirmation once in a
week (50%) with suppliers, Request for quote/bid once in a week (27.80%) with suppliers
and Despatch advice once in a week (72.20%) with suppliers. Fertilizer Industry has
exchanged Purchase order once in a week (100%) with suppliers, Invoice once in a week
126
(100%) with suppliers, Order Confirmation once in a week (100%) with suppliers, Request
for quote/bid once in a week (100%) with suppliers and Despatch advice once in a week
(100%) with suppliers.
4.1.2.14 Cross Tabulation Performed Between Ownership of the Firm and Electronic
Documents Exchanged With Suppliers More Often.
TABLE 4.32: Cross Tabulation: Ownership of the Firm – Electronic Documents

Exchanged With Suppliers More Often
Crosstab
Purchase Order Request for Despatch
Invoice
order Confirmation quote/bid advice
Once in
Once in Once in Once in a Once in Once in
three
a week a week week a week a week
months
Count 17 18 18 6 9 17
% within
Ownership 81.00% 85.70% 85.70% 28.60% 42.90% 81.00%
Public
Firm
Sector
% within
Purchase 29.80% 28.60% 36.00% 25.00% 47.40% 28.80%
order
Count 37 41 30 16 10 38
% within
Ownership 80.40% 89.10% 65.20% 34.80% 21.70% 82.60%
Ownership Private
Firm
Firm Sector
% within
Purchase 64.90% 65.10% 60.00% 66.70% 52.60% 64.40%
order
Count 3 4 2 2 0 4
% within
Ownership 60.00% 80.00% 40.00% 40.00% 0.00% 80.00%
Joint
Firm
Sector
% within
Purchase 5.30% 6.30% 4.00% 8.30% 0.00% 6.80%
order
Count 57 63 50 24 19 59
% within
Ownership 79.20% 87.50% 69.40% 33.30% 26.40% 81.90%
Total Firm
% within
Purchase 100.00% 100.00% 100.00% 100.00% 100.00%
order
127
The observed frequency in the cross tabulation matrix: Public Sector Company has
exchanged Purchase order once in a week (81.00%) with suppliers, Invoice once in a week
(85.70%) with suppliers, Order Confirmation once in a week (85.70%) with suppliers,
Request for quote/bid once in a three month (42.90%) with suppliers and Despatch advice
once in a week (81.00%) with suppliers.
Private Sector Company has exchanged Purchase order once in a week (80.40%) with
week (65.20%) with suppliers, Request for quote/bid once in a week (34.80%) with
suppliers and Despatch advice once in a week (82.60%) with suppliers.
Joint Sector Company has exchanged Purchase order once in a week (60% of them) with
suppliers, Invoice once in a week (80%) with suppliers, Order Confirmation once in a
week (40%) with suppliers, Request for quote/bid once in a week (40%) with suppliers and
Despatch advice once in a week (80%) with suppliers.
4.1.2.15 Cross Tabulation Performed Between Sizes of the Firm (Based on

Investment) – Electronic Documents Exchanged With Suppliers More Often.
TABLE 4.33: Cross Tabulation: Size of the Firms (Based On Investment) –

Electronic Documents Exchanged With Suppliers More Often
Crosstab
Purcha Order Despatc
se Invoice Confirmati Request for quote/bid h
order on advice
Once in Once in
Once in Once in Once in a Once in Once in
a three
a week a week week a week a week
month months
Siz Count 1 2 1 0 1 0 1
e of Invest % within
the ment Size of the
co 50.00 100.00 50.00
betwee company - 50.00% 0.00% 0.00% 50.00%
mp % % %
n 25 Based on
any lakh to Investment
- 5 crore
Bas % within
rupees
ed Purchase 1.80% 3.20% 2.00% 0.00% 5.00% 0.00% 1.70%
on order
Inv Invest Count 8 8 8 2 2 3 8
128
est ment % within

me betwee Size of the
nt n5 80.00 30.00
company - 80.00% 80.00% 20.00% 20.00% 80.00%
crore % %
Based on
to 10 Investment
crore
rupees % within
Purchase 14.00% 12.70% 16.00% 8.30% 10.00% 15.80% 13.60%
order
Count 48 53 41 22 17 16 50
% within
More Size of the
80.00 36.70
than 10 company - 88.30% 68.30% 28.30% 26.70% 83.30%
% %
crore Based on
Invest Investment
ment % within
Purchase 84.20% 84.10% 82.00% 91.70% 85.00% 84.20% 84.70%
order
Count 57 63 50 24 20 19 59
% within
Size of the
company - 79.20% 87.50% 69.40% 33.30% 27.80% 26.40% 81.90%
Total Based on
Investment
% within
100.00 100.00 100.00 100.00 100.00 100.00
Purchase 100.00%
% % % % % %
order

The observed frequency in the cross tabulation matrix: Small Scale Company (Which has
investment between 25 lakh and 5 Crore rupees) has exchanged Purchase order once in a
week (50%) with suppliers, Invoice once in a week (100%) with suppliers, Order
Confirmation once in a week (50%) with suppliers, Request for quote/bid once in a month
(50%) with suppliers and Despatch advice once in a week (50%) with suppliers.
Medium Scale Company (Which has investment between 5 Crore to 10 Crore rupees) has
exchanged Purchase order once in a week (80%) with suppliers, Invoice once in a week
(80%) with suppliers, Order Confirmation once in a week (80%) with suppliers, Request
for quote/bid once in a three month (30%) with suppliers and Despatch advice once in a
week (80%) with suppliers.
Large Scale Company (Which has more than 10 Crore rupees investment) has exchanged
Purchase order once in a week (80% of them) with suppliers, Invoice once in a week
(88.30%) with suppliers, Order Confirmation once in a week (68.30%) with suppliers,
Request for quote/bid once in a week (36.7%) with suppliers and Despatch advice once in
a week (83.30%) with suppliers.
129
4.1.2.16 Cross Tabulation Performed Between Size of the Firms (Based on Number of
Employees) and Electronic Documents Exchanged With Suppliers More Often.
TABLE 4.34: Cross Tabulation: Size of the Firms (Based On Number of Employees)
– Electronic Documents Exchanged with Suppliers More Often
Crosstab
Order
Purchas Request for Despatc
Invoice Confirmatio
e order quote/bid h advice
n
Once in Once in Once in a Once in Once in Once in
a week a week week a week a month a week
Count 9 11 8 2 5 12
% within Size of
Size 50 to the company - 100.00
of 249 75.00% 91.70% 66.70% 16.70% 41.70%
Based on No. of %
the employe Employees
com es
pany % within
15.80% 17.50% 16.00% 8.30% 25.00% 20.30%
- Purchase order
Base
Count 48 52 42 22 15 47
d on
No. % within Size of
of More the company -
than 249 80.00% 86.70% 70.00% 36.70% 25.00% 78.30%
Empl Based on No. of
oyee employe Employees
s es
% within
84.20% 82.50% 84.00% 91.70% 75.00% 79.70%
Purchase order
Count 57 63 50 24 20 59
% within Size of
the company -
79.20% 87.50% 69.40% 33.30% 27.80% 81.90%
Total Based on No. of
Employees
% within 100.00 100.00 100.00 100.00
100.00% 100.00%
Purchase order % % % %
The observed frequency in the cross tabulation matrix: Medium Scale Company (Which
has 50 to 249 employees) has exchanged Purchase order once in a week (75.00%) with
week (66.70%) with suppliers, Request for quote/bid once in a month (41.70%) with
suppliers and Despatch advice once in a week (100%) with suppliers.
Large Scale Company (Which has more than 249 employees) has exchanged Purchase
order once in a week (80% of them) with suppliers, Invoice once in a week (86.70%) with
suppliers, Order Confirmation once in a week (70.00%) with suppliers, Request for
130
quote/bid once in a week (36.7%) with suppliers and Despatch advice once in a week
(78.30%) with suppliers.
4.1.2.17 Cross Tabulation Performed Between the Types of Industry and Methods the
Electronic Business Documents Exchanged With Suppliers.
TABLE 4.35: Cross Tabulation: Types of Industry –

Methods of Electronic Business Documents Exchanged With Suppliers
Crosstab
Fully Fully integrated WEB supplier
Company
integrated Solution (EDI) Portal via
Run
Solution via Business to Business to
supplier
(EDI) Business (B2B) Business /
portal
directly Marketplace / Transaction
(WEB
with transaction platform
EDI)
Suppliers platform (WEB EDI)
Yes Yes Yes Yes
Count 14 5 7 2
% within
Industry
77.80% 27.80% 38.90% 11.10%
Based on
Chemica Product
l& % within
Petroleu Fully
m integrated
Solution 35.00% 33.30% 25.00% 8.70%
(EDI)
directly with
Suppliers
Count 3 2 0 2
Industry
Based % within
on Industry
60.00% 40.00% 0.00% 40.00%
Product Based on
Product
Automot % within
ive Fully
integrated
Solution 7.50% 13.30% 0.00% 8.70%
(EDI)
directly with
Suppliers
Count 1 0 2 3
Pharmac % within
eutical Industry
25.00% 0.00% 50.00% 75.00%
Based on
Product
131
% within
Fully
integrated
Solution 2.50% 0.00% 7.10% 13.00%
(EDI)
directly with
Suppliers
Count 2 2 2 3
% within
Industry
25.00% 25.00% 25.00% 37.50%
Based on
Product
Electrical % within
Fully
integrated
Solution 5.00% 13.30% 7.10% 13.00%
(EDI)
directly with
Suppliers
Count 6 1 2 2
% within
Industry
85.70% 14.30% 28.60% 28.60%
Based on
Product
Textile % within
Fully
integrated
Solution 15.00% 6.70% 7.10% 8.70%
(EDI)
directly with
Suppliers
Count 9 3 11 6
% within
Industry
50.00% 16.70% 61.10% 33.30%
Based on
Engineer Product
ing & % within
Machine Fully
Tools integrated
Solution 22.50% 20.00% 39.30% 26.10%
(EDI)
directly with
Suppliers
Count 1 1 1 0
% within
Industry
100.00% 100.00% 100.00% 0.00%
Based on
Fertilizer Product
% within
Fully
integrated 2.50% 6.70% 3.60% 0.00%
Solution
(EDI)
132
directly with
Suppliers
Count 4 1 3 5
% within
Industry
36.40% 9.10% 27.30% 45.50%
Based on
Product
Others % within
Fully
integrated
Solution 10.00% 6.70% 10.70% 21.70%
(EDI)
directly with
Suppliers
Count 40 15 28 23
% within
Industry
55.60% 20.80% 38.90% 31.90%
Based on
Product
Total % within
Fully
integrated
Solution 100.00% 100.00% 100.00% 100.00%
(EDI)
directly with
Suppliers
The observed frequency in the cross tabulation matrix: in Chemical and Petroleum Industry
the methods of electronic business documents exchanged with suppliers are Fully
integrated solution (EDI) directly with the supplier (77.80% of them used) and Web
supplier portal via B2B marketplace/transaction platform (Web EDI) (38.90% of them
used).
In Automotive Industry the methods of electronic business documents exchanged with

suppliers are Fully integrated solution (EDI) directly with the supplier (60% of them used),
Fully integrated solution (EDI) via B2B marketplace/transaction platform ( 40% of them
used) and Company run supplier portal (Web EDI ) (40% of them used).
In Pharmaceutical Industry the methods of electronic business documents exchanged with

suppliers are Company run supplier portal (Web EDI ) (75% of them used) and Fully Web
supplier portal via B2B marketplace/transaction platform (Web EDI ) (50% of them used).
133
In Electrical Industry the methods of electronic business documents exchanged with

suppliers is Company run supplier portal (Web EDI) (37.50% of them used).
In Textile Industry the methods of electronic business documents exchanged with suppliers
are fully integrated solution (EDI) directly with the supplier (85.70% of them used).
In Engineering and Machine Industry the methods of electronic business documents

exchanged with suppliers are Web supplier portal via B2B marketplace/transaction
platform (Web EDI) (61.10% of them used) and Fully integrated solution (EDI) directly
with the supplier (50% of them used).
In Fertilizer Industry the methods of electronic business documents exchanged with

suppliers are Fully integrated solution (EDI) directly with the supplier (100% of them
used), Fully integrated solution (EDI) via B2B marketplace/transaction platform ( 100% of
them used) and Web supplier portal via B2B marketplace/transaction platform (Web EDI )
( 100.00% of them used).
4.1.2.18 Cross Tabulation Performed Between the Ownerships of the Firm – Methods
the Electronic Business Documents Exchanged With Suppliers.
TABLE 4.36: Cross Tabulation: Ownerships of the Firm – Methods of Electronic

Business Documents Exchanged With Suppliers
Crosstab
Fully integrated WEB supplier Portal Company
Fully
Solution (EDI) via via Business to Run
integrated
Business to Business / supplier
Solution
Business (B2B) Transaction portal
(EDI) directly
Marketplace / platform (WEB (WEB
with Suppliers
transaction platform EDI) EDI)
Yes Yes Yes Yes
Count 12 6 6 8
% within
Ownership 57.10% 28.60% 28.60% 38.10%
Pub Firm
lic % within
Own Sect Fully
ershi or integrated
30.00% 40.00% 21.40% 34.80%
p Solution
Firm (EDI) directly
with Suppliers
Priv Count 24 7 19 14
ate % within
Sect Ownership 52.20% 15.20% 41.30% 30.40%
or Firm
134
% within
Fully
integrated
60.00% 46.70% 67.90% 60.90%
Solution
(EDI) directly
with Suppliers
Count 4 2 3 1
% within
Ownership 80.00% 40.00% 60.00% 20.00%
Join Firm
t % within
Sect Fully
or integrated
10.00% 13.30% 10.70% 4.30%
Solution
(EDI) directly
with Suppliers
Count 40 15 28 23
% within
Ownership 55.60% 20.80% 38.90% 31.90%
Firm
Total % within
Fully
integrated
100.00% 100.00% 100.00% 100.00%
Solution
(EDI) directly
with Suppliers
The observed frequency in the cross tabulation matrix: in Public Sector Company the
methods of electronic business documents exchanged with suppliers are Fully integrated
solution (EDI) directly with the supplier ( 57.10% of them used) and Company run
supplier portal (Web EDI ) ( 38.10% of them used).
In Private Sector Company the methods of electronic business documents exchanged with
suppliers are fully integrated solution (EDI) directly with the supplier (52.20% of them
used) and Web supplier portal via B2B marketplace/transaction platform (Web EDI)
(41.30% of them used). In Joint Sector Company the methods of electronic business
documents exchanged with suppliers are Fully integrated solution (EDI) directly with the
supplier ( 80% of them used) and Web supplier portal via B2B marketplace/transaction
platform (Web EDI ) ( 60% of them used).
135
4.1.2.19 Cross Tabulation Performed Between the Size of the Company (Based On
Investment) and Methods the Electronic Business Documents Exchanged With
Suppliers.
TABLE 4.37: Cross Tabulation: Size of the Company (Based on Investment) –
Methods the Electronic Business Documents Exchanged With Suppliers
Crosstab
Fully integrated
Compan
Fully Solution (EDI) WEB supplier Portal
y Run
integrated via Business to via Business to
supplier
Solution (EDI) Business (B2B) Business /
portal
directly with Marketplace / Transaction platform
(WEB
Suppliers transaction (WEB EDI)
EDI)
platform
Yes Yes Yes Yes
Count 0 0 1 2
% within Size
Invest of the
ment company - 0.00% 0.00% 50.00% 100.00%
betwe Based on
en 25 Investment
lakh % within
to 5 Fully
crore integrated
rupee Solution 0.00% 0.00% 3.60% 8.70%
s (EDI) directly
with
Suppliers
Size of Count 1 1 3 5
the
compan % within Size
y- Invest of the
Based ment company - 10.00% 10.00% 30.00% 50.00%
on betwe Based on
Invest en 5 Investment
ment crore
to 10 % within
crore Fully
rupee integrated
s Solution 2.50% 6.70% 10.70% 21.70%
(EDI) directly
with
Suppliers
More Count 39 14 24 16
than % within Size
10 of the
crore company - 65.00% 23.30% 40.00% 26.70%
Invest Based on
ment Investment
136
% within
Fully
integrated
Solution 97.50% 93.30% 85.70% 69.60%
(EDI) directly
with
Suppliers
Count 40 15 28 23
% within Size
of the
company - 55.60% 20.80% 38.90% 31.90%
Based on
Investment
Total
% within
Fully
integrated
Solution 100.00% 100.00% 100.00% 100.00%
(EDI) directly
with
Suppliers

In Small Scale Company (Which has investment between 25 lakh to 5 Crore rupees), the
methods of electronic business documents exchanged with suppliers are Company run
supplier portal (Web EDI ) (100 % of them used) and Fully Web supplier portal via B2B
marketplace/transaction platform (Web EDI ) (50% of them used).
In Medium Scale Company (Which has investment between 5 Crore to 10 Crore rupees)
the methods of electronic business documents exchanged with suppliers are Company run
supplier portal (Web EDI ) (50 % of them used) and Fully Web supplier portal via B2B
marketplace/transaction platform (Web EDI ) (30% of them used).
In Large Scale Company (Which has investment more than 10 Crore rupees) the methods
of electronic business documents exchanged with suppliers are fully integrated solution
(EDI) directly with the supplier (65% of them used) and Web supplier portal via B2B
marketplace/transaction platform (Web EDI) (40% of them used).
137
4.1.2.20 Cross Tabulation Performed Between the Size of the Company (Based on
Number of Employees) and Methods the Electronic Business Documents Exchanged
With Suppliers.

Employees) – Methods the Electronic Business Documents Exchanged With Suppliers
Crosstab
Fully integrated WEB supplier
Fully Company
Solution (EDI) Portal via
integrated Run
via Business to Business to
Solution supplier
Business (B2B) Business /
(EDI) portal
Marketplace / Transaction
directly with (WEB
transaction platform (WEB
Suppliers EDI)
platform EDI)
Yes Yes Yes Yes
Count 3 1 4 6
% within Size
of the company
50 to 25.00% 8.30% 33.30% 50.00%
- Based on No.
249 of Employees
employ % within Fully
Size ees
of the integrated
comp Solution (EDI) 7.50% 6.70% 14.30% 26.10%
any - directly with
Base Suppliers
d on Count 37 14 24 17
No. % within Size
of of the company
Empl More 61.70% 23.30% 40.00% 28.30%
- Based on No.
oyees than of Employees
249
employ % within Fully
ees integrated
Solution (EDI) 92.50% 93.30% 85.70% 73.90%
directly with
Suppliers
Count 40 15 28 23
% within Size
of the company
55.60% 20.80% 38.90% 31.90%
- Based on No.
of Employees
Total
% within Fully
integrated
Solution (EDI) 100.00% 100.00% 100.00% 100.00%
directly with
Suppliers

In Medium Scale Company (Which has employees between 50 to 249 employees), the
methods of electronic business documents exchanged with suppliers are Company run
138
supplier portal (Web EDI) (50 % of them used) and Fully Web supplier portal via B2B
marketplace/transaction platform (Web EDI) (33.30% of them used).
In Large Scale Company (Which has more than 249 employees) the methods of electronic
business documents exchanged with suppliers are fully integrated solution (EDI) directly
with the supplier (61.7% of them used) and Web supplier portal via B2B
marketplace/transaction platform (Web EDI) (40% of them used).
4.1.2.21 Cross Tabulation Performed Between the Types of Industry and Initiative /
Drive for the Development (Up Gradation) of IT For Procurement.
TABLE 4.39: Cross Tabulation between the types of Industry and

Initiative / drive for the development (up gradation) of IT for procurement
Crosstab
External Business
Procure Proces Admini
Top IT consultant develop
ment s strative
manage depart s, ment
Departm Leader leaders
ment ment software departm
ent ship hip
providers ent
Yes Yes Yes Yes Yes Yes Yes
Count 11 6 15 14 2 5 4
% within
Chemi Industry 33.30 77.80
61.10% 83.30% 11.10% 27.80% 22.20%
cal & Based on % %
Petrole Product
um % within
Procuremen 25.00
22.40% 27.30% 32.60% 33.30% 45.50% 36.40%
t %
Department
Count 3 3 3 5 0 2 1
Ind
% within
ustr
Industry 60.00 100.00
y 60.00% 60.00% 0.00% 40.00% 20.00%
Autom Based on % %
Bas
otive Product
ed
on % within
Pro Procuremen 12.50
6.10% 5.50% 11.60% 0.00% 18.20% 9.10%
duc t %
t Department
Count 4 1 3 1 1 0 0
% within
Industry 100.00 25.00
Pharm 75.00% 25.00% 25.00% 0.00% 0.00%
Based on % %
aceutic Product
al % within
Procuremen
8.20% 4.20% 5.50% 2.30% 16.70% 0.00% 0.00%
t
Department
Electri Count 3 2 5 5 0 1 0
139
cal % within
Industry 25.00 62.50
37.50% 62.50% 0.00% 12.50% 0.00%
Based on % %
Product
% within
Procuremen
6.10% 8.30% 9.10% 11.60% 0.00% 9.10% 0.00%
t
Department
Count 6 1 6 3 0 0 0
% within
Industry 14.30
85.70% 85.70% 42.90% 0.00% 0.00% 0.00%
Based on %
Textile Product
% within
Procuremen
12.20% 4.20% 10.90% 7.00% 0.00% 0.00% 0.00%
t
Department
Count 12 9 12 11 3 2 4
Engine % within
ering Industry 50.00 61.10
66.70% 66.70% 16.70% 11.10% 22.20%
& Based on % %
Machi Product
ne % within
Tools Procuremen 37.50
24.50% 21.80% 25.60% 50.00% 18.20% 36.40%
t %
Department
Count 1 0 1 0 0 0 0
% within
Industry 100.00 100.00
0.00% 0.00% 0.00% 0.00% 0.00%
Fertiliz Based on % %
er Product
% within
Procuremen
2.00% 0.00% 1.80% 0.00% 0.00% 0.00% 0.00%
t
Department
Count 9 2 10 4 0 1 2
% within
Industry 18.20
81.80% 90.90% 36.40% 0.00% 9.10% 18.20%
Based on %
Others Product
% within
Procuremen
18.40% 8.30% 18.20% 9.30% 0.00% 9.10% 18.20%
t
Department
Count 49 24 55 43 6 11 11
% within
Industry 33.30
68.10% 76.40% 59.70% 8.30% 15.30% 15.30%
Based on %
Total Product
% within
Procuremen 100.00 100.00 100.00 100.00 100.00 100.00
100.00%
t % % % % % %
Department
140
In Chemical and Petroleum Industry, initiative for further up gradation of Information

Technology for Procurement by the Top management has been observed to be (83.30%),
IT department (77.80%) and Procurement department (61.10%). In Automotive Industry,
the initiative for further up gradation of Information Technology for Procurement by the
IT department has been found to be (100%), by the Top management (60%), Procurement
department (60%) and Process leadership (60%). In Pharmaceutical Industry, the initiative
for further up gradation of Information Technology for Procurement by the Procurement
department has been found to be (100%) and by the Top management (75%). In Electrical
Industry, the initiative for further up gradation of Information Technology for Procurement
by the Top management has been found to be (62.50%) and by IT department (62.50%). In
Textile Industry, the initiative for further up gradation of Information Technology for
Procurement by the Procurement department has been found to be (85.70%) and by the
Top management (85.70%). In Engineering & Machine Tools Industry, the initiative for
further up gradation of Information Technology for Procurement by the Procurement
department has been found to be (85.70%), Top management (85.70%), IT department
(61.10%) and Process leadership (50%). In Fertilizer Industry, the initiative for further up
gradation of Information Technology for Procurement by the Procurement department has
been found to be (100%) and by the Top management (100%). In Other Industry, the
initiative for further up gradation of Information Technology for Procurement by the Top
management has been found to be (90.90%) and by the Procurement department (81.80%).
4.1.2.22 Cross Tabulation Performed Between the Ownerships Of The Firm And
Initiative/ Drive For The Development (Up Gradation) Of IT For Procurement.
TABLE 4.40: Cross Tabulation between the Ownerships of the firm and
Initiative/ Drive for the development (up gradation) of IT for procurement
Crosstab
External
Business
Procure Proces Administ consulta
Top IT developm
ment s rative nts,
manage depart ent
Departm Leader leadershi software
ment ment departme
ent ship p provider
nt
s
Ow Pub Count 15 7 18 11 1 2 3
ner lic % within
shi Sec 33.30
Ownership 71.40% 85.70% 52.40% 4.80% 9.50% 14.30%
p tor %
Firm
141
Fir % within
m 29.20
Procurement 30.60% 32.70% 25.60% 16.70% 18.20% 27.30%
%
Department
Count 30 14 32 30 4 7 6
Pri % within
30.40
vat Ownership 65.20% 69.60% 65.20% 8.70% 15.20% 13.00%
%
e Firm
Sec % within
tor 58.30
Procurement 61.20% 58.20% 69.80% 66.70% 63.60% 54.50%
%
Department
Count 4 3 5 2 1 2 2
% within
Joi 60.00 100.00
Ownership 80.00% 40.00% 20.00% 40.00% 40.00%
nt % %
Firm
Sec
tor % within
12.50
Procurement 8.20% 9.10% 4.70% 16.70% 18.20% 18.20%
%
Department
Count 49 24 55 43 6 11 11
% within
33.30
Ownership 68.10% 76.40% 59.70% 8.30% 15.30% 15.30%
%
Total Firm
% within
100.00 100.00
Procurement 100.00% 100.00% 100.00% 100.00% 100.00%
% %
Department
In Public Sector Company, the further up gradation of Information Technology for

Procurement has been initiated by the Top management to the extent of (85.70%) and by
the Procurement department (71.40%). In Private Sector Company, the further up
gradation of Information Technology for Procurement has been initiated by the Top
management to the extent of (69.60%) and Procurement department (65.20%) and IT
department (65.20%). In Joint Sector Company, the further up gradation of Information
Technology for Procurement has been initiated by the Top management to the extent of
(100%), by the Procurement department (80%) and by the Process leadership (60%).
142
4.1.2.23 Cross Tabulation Performed Between the Sizes of the Firm (Based on
Investment) and Initiative/ Drive for the Development (Up Gradation) of IT for
Procurement.
TABLE 4.41: Cross Tabulation between the Size of the firm (based on Investment)
and Initiative/ drive for the development (up gradation) of IT for procurement
Crosstab
Procure Proces Admini External Business
Top IT
ment s strative consultant developme
manage depart
Departm Leader leaders s, software nt
ment ment
ent ship hip providers department
Count 0 1 1 0 0 0 1
% within
Invest Size of the
ment 50.00 50.00
company - 0.00% 0.00% 0.00% 0.00% 50.00%
betwee % %
Based on
n 25 Investment
lakh to
5 crore % within
rupees Procureme
nt 0.00% 4.20% 1.80% 0.00% 0.00% 0.00% 9.10%
Departmen
Siz t
e of Count 7 2 8 3 0 2 0
the
co Invest % within
mp ment Size of the
20.00 80.00 30.00
any betwee company - 70.00% 0.00% 20.00% 0.00%
% % %
- n5 Based on
Bas crore Investment
ed to 10 % within
on crore Procureme
Inv rupees nt 14.30% 8.30% 14.50% 7.00% 0.00% 18.20% 0.00%
est Departmen
me t
nt Count 42 21 46 40 6 9 10
% within
Size of the
More 35.00 76.70 66.70 10.00
company - 70.00% 15.00% 16.70%
than 10 % % % %
Based on
crore Investment
Invest
ment % within
Procureme
87.50 93.00 100.00
nt 85.70% 83.60% 81.80% 90.90%
% % %
Departmen
t
Total Count 49 24 55 43 6 11 11
143
% within
Size of the
33.30 59.70
company - 68.10% 76.40% 8.30% 15.30% 15.30%
% %
Based on
Investment
% within
Procureme
100.00 100.00 100.00 100.00
nt 100.00% 100.00% 100.00%
% % % %
Departmen
t
In Medium Scale Company (which has investment between 25 lakh to 5 Crore), the further
up gradation of Information Technology for Procurement has been initiated by the
Process leadership to the extent of (50%), by the Top management (50%) and by Business
development department (50%).
In Medium Scale Company (which has investment between 5 Crore to 10 Crore), the
further up gradation of Information Technology for Procurement has been initiated by the
Top management to the extent of (80%) and by the Procurement department (70%).
In Large Scale Company (which has more than 10 Crore investment), the further up
gradation of Information Technology for Procurement has been initiated by the Top
management to the extent of (76.70%), by the Procurement department (70.00%) and by
the IT department (66.70%).
4.1.2.24 Cross Tabulation Performed Between the Sizes of the Firm (Based on
Number of Employees) and the Initiative/ Drive for the Development (Up Gradation)
of IT for Procurement.
TABLE 4.42: Cross Tabulation: Size of the firm (based on Number of employees) and
the initiative/ drive for the development (up gradation) of IT for procurement
Crosstab
Externa
l
Business
Procure Proces consulta
Top IT Administr develop
ment s nts,
manage depart ative ment
Departm Leader softwar
ment ment leadership departm
ent ship e
ent
provide
rs
Size 50 to Count 8 2 9 5 0 2 1
144
of 249 % within
the empl Size of the
com oyees company - 16.70
pany 66.70% 75.00% 41.70% 0.00% 16.70% 8.30%
Based on %
- No. of
Base Employees
d on
No. % within
of Procurement 16.30% 8.30% 16.40% 11.60% 0.00% 18.20% 9.10%
Empl Department
oyee
Count 41 22 46 38 6 9 10
s
% within
Size of the
More company - 36.70 63.30
than 68.30% 76.70% 10.00% 15.00% 16.70%
Based on % %
249 No. of
empl Employees
oyees
% within
91.70
Procurement 83.70% 83.60% 88.40% 100.00% 81.80% 90.90%
%
Department
Count 49 24 55 43 6 11 11
% within
Size of the
company - 33.30
68.10% 76.40% 59.70% 8.30% 15.30% 15.30%
Based on %
Total No. of
Employees
% within
100.00 100.00 100.00
Procurement 100.00% 100.00% 100.00% 100.00%
% % %
Department

In Medium Scale Company (which has 50 to 249 employees), the initiative for further up
gradation of Information Technology for Procurement has been undertaken by the Top
management to the extent of (75.00%) and by the, Procurement department (66.70%).
In Large Scale Company (which has more than 249 employees) the further up gradation of
Information Technology for Procurement has been initiated by the Top management to
the extent of (76.70%), Procurement department (63.30%) and IT department (63.30%).
4.2 Inferential Statistics
4.2.1. Krushkal Wallis Test
Kruskal-Wallis Test in very simple terms can be said to be the non-parametric equivalent
for the parametric test ANOVA. The non-parametric test- Krushkal Wallis test has been
performed for the following objectives and the result is shown below.
145
4.2.1.1. Kruskal-Wallis Test is Performed With an Objective to Understand the

Significance of Difference in Difficulties Faced in E-Procurement Implementation
across Industry.
Ho, 1: There is no significant difference in difficulties faced in E-Procurement

implementation across industry
H1, 1: There is a significant difference in difficulties faced in E-Procurement
implementation across industry
TABLE 4.43: Kruskal-Wallis Test (Statistics): Difficulties Faced in E-Procurement

Implementation – Types of Industry
Test Statistics a,b
Chi- Asymp.
df
Square Sig.
High introduction costs for new solutions 10.321 7 .171
Suppliers are Slow to link up with Procurement System 12.880 7 .075
Lack of quality of master data 10.608 7 .157
Difficulties in judging Usefulness and Potential of new
4.071 7 .772
Information Technology Solutions
Lack of User friendliness and User acceptance of Solutions 9.474 7 .220
Solutions only address some of Our Procurement processes 17.000 7 .017
Solution do not able to address the complexity of our processes 14.232 7 .047
Solutions are not well enough integrated (Isolated Applications) 3.343 7 .852
Lack of qualified or skilled staff who can work with modern
10.249 7 .175
procurement system
Lack of Consultant expertise in Information Technology (IT)
8.361 7 .302
for Procurement
a. Kruskal Wallis Test
b. Grouping Variable: Industry Based on Product
In the table 4.43, the calculated value of Chi-Square, degree of freedom, and significant
value is given. Table shows the p-value of “Solutions only address some of our
procurement processes” is 0.017 and “Solutions do not address the complexity of our
processes” is 0.047. These p- values are less than 0.05, hence for these statements the null
hypotheses stand rejected. So the difficulties faced in E-Procurement implementation
across industry are significant for these statements at p= or <.05. For other statements, we
fail to reject the null hypothesis.
146
TABLE 4.44: Kruskal-Wallis Test (Ranks): Difficulties Faced in E-Procurement

Implementation - Types Industry
Ranks
Industry Based on Product N Mean Rank
Chemical & Petroleum 18 36.83
Automotive 5 44.30
Pharmaceutical 4 27.63
Electrical 8 35.44
High introduction costs Textile 7 55.21
for new solutions
Engineering& Machine Tools 18 31.56
Fertilizer 1 54.00
Others 11 31.00
Total 72
Automotive 5 51.10
Suppliers are Slow to link Electrical 8 45.00
up with Procurement Textile 7 32.86
System Engineering & Machine Tools 18 40.61
Fertilizer 1 21.00
Others 11 25.32
Total 72
Automotive 5 39.50
Electrical 8 33.13
Lack of quality of master
Textile 7 20.86
data
Engineering & Machine Tools 18 41.42
Fertilizer 1 11.00
Others 11 30.09
Total 72
Automotive 5 32.10
Difficulties in judging Electrical 8 25.13
Usefulness and Potential
Textile 7 38.36
of new Information
Technology Solutions Engineering & Machine Tools 18 35.94
Fertilizer 1 46.50
Others 11 38.59
Total 72
Lack of User friendliness Chemical & Petroleum 18 44.36
and User acceptance of Automotive 5 40.50
Solutions Pharmaceutical 4 43.75
147
Electrical 8 24.94
Textile 7 38.71
Fertilizer 1 51.50
Others 11 37.41
Total 72
Automotive 5 43.80
Solutions only address Electrical 8 27.00
some of Our Textile 7 37.07
Procurement processes Engineering & Machine Tools 18 32.97
Fertilizer 1 6.50
Others 11 26.64
Total 72
Automotive 5 41.70
Electrical 8 22.75
Solution do not able to
address the complexity Textile 7 33.21
of our processes
Fertilizer 1 6.50
Others 11 25.91
Total 72
Automotive 5 26.50
Solutions are not well Electrical 8 39.13
enough integrated Textile 7 43.57
(Isolated Applications) Engineering & Machine Tools 18 34.75
Fertilizer 1 44.50
Others 11 35.73
Total 72
Automotive 5 45.80
Lack of qualified or Electrical 8 22.06
skilled staff who can
Textile 7 49.50
work with modern
procurement system Engineering & Machine Tools 18 34.11
Fertilizer 1 61.00
Others 11 39.55
Total 72
148

Automotive 5 33.80
Lack of Consultant Electrical 8 26.13
expertise in Information
Textile 7 47.71
Technology (IT) for
Procurement Engineering & Machine Tools 18 30.81
Fertilizer 1 45.50
Others 11 37.27
Total 72
Table 4.44 shows the mean rank of difficulties faced by the companies. From the mean
rank, it can be concluded that Pharmaceutical Industry (Mean rank is 55.65 and 47.63)
have faced more difficulties and Fertilizer Industry (Mean rank is 6.50) have faced less
difficulties in „Solutions only address some of our procurement processes‟ and „Solutions
do not address the complexity of our processes‟.

Significance of Difference in Difficulties Faced in E-Procurement Implementation
across Size of the Firm.
Ho, 2: There is no significant difference in difficulties faced in E-Procurement

implementation across Size of the firm.
H1, 2: There is a significant difference difficulties faced in E-Procurement implementation
across Size of the firm.
TABLE 4.45: Kruskal-Wallis Test (Statistics): Difficulties Faced in E-Procurement
Implementation – Size of the Firm (Based on Investment)
Test Statistics a,b
Chi-Square df Asymp. Sig.
High introduction costs for new solutions 9.359 2 .009
Suppliers are Slow to link up with Procurement System .938 2 .626
Lack of quality of master data 1.068 2 .586
2.936 2 .230
Lack of User friendliness and User acceptance of
4.900 2 .086
Solutions
Solutions only address some of Our Procurement
5.130 2 .077
processes
Solution do not able to address the complexity of our
2.969 2 .227
processes
149
Solutions are not well enough integrated (Isolated

2.861 2 .239
Applications)
Lack of qualified or skilled staff who can work with
4.349 2 .114
modern procurement system
Lack of Consultant expertise in Information Technology
4.824 2 .090
(IT) for Procurement
Table 4.45 shows the p-value of “High introduction costs for new solutions” is 0.009,
which is less than 0.05. Hence for this statement null hypothesis is rejected. So there is a
significant difference in difficulties faced in E-Procurement implementation across Size of
the firm for this statement. For other statements, we fail to reject the null hypothesis.
TABLE 4.46: Kruskal-Wallis Test (Ranks): Difficulties Faced in E-Procurement

Implementation – Size of the Firm (Based on Investment)
Ranks
Size of the company - Based on Investment N Mean Rank
Investment between 25 lakh to 5 crore
2 12.00
High introduction rupees
costs for new Investment between 5 crore to 10 crore rupees 10 22.45
solutions More than 10 crore Investment 60 39.66
Total 72
Investment between 25 lakh to 5 crore rupees 2 41.75
Suppliers are Slow Investment between 5 crore to 10 crore rupees 10 31.45
to link up with
Procurement System More than 10 crore Investment 60 37.17
Total 72
Lack of quality of Investment between 5 crore to 10 crore rupees 10 35.70
master data More than 10 crore Investment 60 37.10
Total 72
Difficulties in Investment between 25 lakh to 5 crore rupees 2 13.00
judging Usefulness Investment between 5 crore to 10 crore rupees 10 36.70
and Potential of new
Information More than 10 crore Investment 60 37.25
Technology Total 72
Solutions
Lack of User Investment between 25 lakh to 5 crore rupees 2 6.00
friendliness and Investment between 5 crore to 10 crore rupees 10 35.20
User acceptance of More than 10 crore Investment 60 37.73
Solutions
Total 72
Solutions only Investment between 25 lakh to 5 crore rupees 2 9.50
address some of Our Investment between 5 crore to 10 crore rupees 10 42.65
Procurement More than 10 crore Investment 60 36.38
150
processes Total 72
Solution do not able Investment between 25 lakh to 5 crore rupees 2 12.75
to address the Investment between 5 crore to 10 crore rupees 10 36.95
complexity of our More than 10 crore Investment 60 37.22
processes Total 72
Solutions are not Investment between 25 lakh to 5 crore rupees 2 41.25

well enough Investment between 5 crore to 10 crore rupees 10 45.55
integrated (Isolated More than 10 crore Investment 60 34.83
Applications)
Total 72
Lack of qualified or Investment between 25 lakh to 5 crore rupees 2 9.50
skilled staff who can Investment between 5 crore to 10 crore rupees 10 32.20
work with modern More than 10 crore Investment 60 38.12
procurement system Total 72
Lack of Consultant Investment between 25 lakh to 5 crore rupees 2 11.75
expertise in Investment between 5 crore to 10 crore rupees 10 44.50
Information
Technology (IT) for More than 10 crore Investment 60 35.99
Procurement Total 72
Table 4.46 shows the mean rank of difficulties faced by the companies based on
investment. From the mean rank, it can be inferred that Large Companies (which have
More than 10 crore rupees Investment) (Mean rank is 39.66) have faced more difficulty
and Small Scale Companies (which have Investment between 25 lakh rupees and 5 crore
rupees) (Mean rank is 12.00) have faced less difficulty with respect to “High introduction
costs for new solutions”.
4.2.1.3 Kruskal-Wallis Test is performed With an Objective to Understand the

Significance of Difference in Procurement Objectives across Industry.
Ho, 3: There is no significant difference in procurement objectives across industry.
H1, 3: There is a significant difference of procurement objectives across industry.
TABLE 4.47: Kruskal-Wallis Test (Statistics): Procurement Objectives – Types of

Industry
Test Statisticsa,b
Reduction of purchase price 15.025 7 .036
Optimising total costs of procurement 16.387 7 .022
Internal process optimisation 10.285 7 .173
Securing supplies 8.930 7 .258
Maintaining quality guidelines 7.879 7 .343
151
Increase in cost transparency 13.612 7 .059

B2B process optimisation 4.108 7 .767
Minimising warehouse costs 11.413 7 .122
Reduction of the number of suppliers 6.649 7 .466
Product development with suppliers 11.457 7 .120
Outsourcing of operative procurement processes 3.916 7 .789
Outsourcing of strategic procurement processes 9.255 7 .235
Table 4.47 shows, the p-value of “Reduction of purchase price” is 0.036 and “Optimising
total costs of procurement” is 0.022, which are less than 0.05. Hence for these statements
the null hypothesis stands rejected. So there is a significant difference of procurement
objectives across industry with respect to these two objectives while for other objectives
we fail to reject the null hypothesis.
TABLE 4.48: Kruskal-Wallis Test (Ranks): Procurement Objectives – Types of

Industry
Ranks
Automotive 5 45.30
Electrical 8 24.13
Reduction of purchase
Textile 7 49.07
price
Fertilizer 1 58.50
Others 11 46.50
Total 72
Automotive 5 28.50
Electrical 8 17.50
Textile 7 43.93
procurement
Engineering& Tools 18 34.94
Fertilizer 1 26.50
Others 11 32.95
Total 72
Internal process
Automotive 5 31.60
optimisation
152
Electrical 8 25.94
Textile 7 53.00
Fertilizer 1 53.00
Others 11 41.32
Total 72
Automotive 5 39.70
Electrical 8 38.94
Securing supplies Textile 7 49.29
Fertilizer 1 58.00
Others 11 42.18
Total 72
Automotive 5 42.00
Electrical 8 44.44
Maintaining quality
Textile 7 39.21
guidelines
Fertilizer 1 48.50
Others 11 36.36
Total 72
Automotive 5 22.90
Electrical 8 27.13
Increase in cost
Textile 7 48.79
transparency
Fertilizer 1 29.50
Others 11 30.77
Total 72
Automotive 5 25.60
Electrical 8 30.63
B2B process optimisation Textile 7 37.50
Fertilizer 1 28.50
Others 11 35.00
Total 72
153

Automotive 5 45.50
Electrical 8 29.25
Minimising warehouse
Textile 7 46.07
costs
Fertilizer 1 57.50
Others 11 35.68
Total 72
Automotive 5 34.80
Electrical 8 33.31
Reduction of the number
Textile 7 46.21
of suppliers
Fertilizer 1 53.50
Others 11 35.68
Total 72
Automotive 5 34.30
Electrical 8 46.56
Textile 7 47.93
suppliers
Fertilizer 1 64.00
Others 11 41.50
Total 72
Automotive 5 33.10
Electrical 8 33.81
Textile 7 42.64
Fertilizer 1 6.50
Others 11 34.64
Total 72
Automotive 5 34.50
Outsourcing of strategic Pharmaceutical 4 21.25
procurement processes Electrical 8 48.25
Textile 7 38.93
154
Fertilizer 1 7.50
Others 11 32.05
Total 72
Table 4.48 shows the mean rank of importance of procurement objectives by the
companies. In Fertilizer Industry (Mean rank is 58.5) the most important procurement
objective and in Electrical Industry (Mean rank is 24.13) least important procurement
objectives was „Reduction of the purchasing price‟ and in Pharmaceutical Industry (Mean
rank is 49.38) the most important procurement objective and in Electrical Industry (Mean
rank is 17.50) least important procurement objectives was „optimising total costs of
procurement‟.
4.2.1.4 Kruskal-Wallis Test is performed With an Objective to Understand the

Significance of Difference in Procurement Objectives (Summated Variables) across
Size of the Firm (Based on Investment).
Ho, 4: There is no significant difference in procurement objectives (Summated Variables)

a Cross Size (based on Investment) of the firm.
H1, 4: There is a significant difference of procurement objectives (Summated Variables) a

Cross Size (based on Investment) of the firm.
TABLE 4.49: Kruskal-Wallis Test: Procurement Objectives (Summated Variables) –

Size of the Firm (Based On Investment)
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Summated Procurement
72 34.00 57.00 48.4028 4.99763
Objectives j
Valid N (listwise) 72
Summation of Responses from the Respondents was carried out on twelve variables of
Procurement Objectives namely, Reduction of Purchasing Price, Optimising Total Cost of
Procurement, Internal Process Optimization, Securing Supplies, Maintaining Quality
Guidelines, Cost Transparency, Business to Business (B2B) Process Optimization,
Minimize Warehouse Costs, Reduction of Number of Suppliers, Product Development
with Suppliers, Outsourcing of Operative Procurement Processes and Outsourcing of
Strategic Procurement Processes.
155
TABLE 4.50: Kruskal-Wallis Test (Ranks): Procurement Objectives (Summated

Variables) – Size of the Firm (Based On Investment)
Ranks
Size Of The Company - Based On Investment N Mean Rank
Summated Investment between 5 crore to 10 crore rupees 10 21.30
Procurement
Objectives More than 10 crore Investment 60 39.51
Total 72
TABLE 4.51: Kruskal-Wallis Test (Statistics): Procurement Objectives (Summated

Variables) – Size of the Firm (Based On Investment)
Test Statisticsa,b
Summated Procurement Objectives
Chi-Square 7.486
df 2
Asymp. Sig. .024
b. Grouping Variable: Size of the company - Based on Investment
Table 4.51 shows the p-values of “Summated Procurement Objectives” is 0.024, which is
less than 0.05. Hence for the Summated Procurement Objectives, the null hypothesis is
rejected. So there is a significant difference of procurement objectives across Size (based
on Investment) of the firm.
Table 4.50 shows the mean rank of “Summated Procurement Objectives”. From the mean
rank, it can be concluded that the Procurement Objectives considered as most important.
In Large Scale Company (which has More than 10 crore rupees Investment) (Mean rank is
39.51) and considered least important in Medium Scale Company (which has investment
between 5 crore rupees to 10 crore rupees) (Mean rank is 22.50).
156
4.2.1.5 Kruskal-Wallis Test is Performed With an Objective to Understand The

Significance of Difference in Procurement Objectives across Size of the Firm (Based
On Investment).
Ho, 5: There is no significant difference in procurement objectives across Size (based on

Investment) of the firm.
H1, 5: There is a significant difference of procurement objectives across Size (based on
Investment) of the firm.
TABLE 4.52: Kruskal-Wallis Test (Statistics): Procurement Objectives – Size of the

Firm (Based on Investment)
Test Statisticsa,b
B2B process optimisation .373 2 .830
Outsourcing of Operative Procurement Processes .229 2 .892
Outsourcing of Strategic Procurement Processes .659 2 .719
Table 4.52 shows the p-value of “Optimising total costs of procurement” is 0.044,
“Maintaining quality guidelines” is 0.014 and “Minimising warehouse costs” is 0.033,
which are less than 0.05. Hence for these statements the null hypothesis is rejected. So
there is a significant difference of procurement objectives across Size of the firm (based on
Investment) for these statements. For other objectives, we fail to reject the null hypothesis.
TABLE 4.53: Kruskal-Wallis Test (Ranks): Procurement Objectives – Size of the

Firm (Based on Investment)
Ranks
Reduction of Investment between 25 lakh to 5 crore rupees 2 42.00
purchase price Investment between 5 crore to 10 crore rupees 10 28.80
157
More than 10 crore Investment 60 37.60

Total 72
Optimising Investment between 5 crore to 10 crore rupees 10 31.55
total costs of
procurement More than 10 crore Investment 60 38.34
Total 72
Internal process Investment between 5 crore to 10 crore rupees 10 32.30
optimisation More than 10 crore Investment 60 38.08
Total 72
Securing Investment between 5 crore to 10 crore rupees 10 26.25
supplies More than 10 crore Investment 60 38.51
Total 72
Maintaining Investment between 5 crore to 10 crore
10 22.15
quality rupees
guidelines More than 10 crore Investment 60 38.49
Total 72
Increase in cost Investment between 5 crore to 10 crore rupees 10 26.20
transparency More than 10 crore Investment 60 38.78
Total 72
B2B process Investment between 5 crore to 10 crore rupees 10 36.50
optimisation More than 10 crore Investment 60 36.77
Total 72
Investment between 5 crore to 10 crore
Minimising 10 22.50
rupees
warehouse costs
Total 72
Reduction of the
number of Investment between 5 crore to 10 crore rupees 10 29.70
suppliers More than 10 crore Investment 60 37.49
Total 72
Product Investment between 5 crore to 10 crore rupees 10 29.80
development
with suppliers
Total 72
Outsourcing of Investment between 25 lakh to 5 crore rupees 2 33.50
operative
procurement Investment between 5 crore to 10 crore rupees 10 34.10
processes More than 10 crore Investment 60 37.00
158
Total 72
Outsourcing of
strategic Investment between 5 crore to 10 crore rupees 10 33.10
procurement More than 10 crore Investment 60 36.80
processes
Total 72
companies. From the mean rank, it can be concluded that In Large Scale Company (which
has More than 10 crore rupees Investment) (Mean rank is 38.34) the most important
procurement objectives and in Small Scale Company (which has Investment between 25
lakh rupees to 5 crore rupees) (Mean rank is 6.00) least important procurement objective
was „optimizing total costs of procurement‟. In Large Scale Company (which has More
than 10 crore rupees Investment) (Mean rank is 39.13) the most important procurement
objectives and in Medium Scale Company (which has investment between 5 crore rupees
to exceed 10 crore rupees) (Mean rank is 22.50) least important procurement objective was
„minimizing warehouse costs‟. In Small Scale Company (which has Investment between
25 lakh rupees to 5 crore rupees) (Mean rank is 48.5) the most important procurement
objectives and in Medium Scale Company (which has investment between 5 crore rupees
to exceed 10 crore rupees) (Mean rank is 22.15) the least important procurement objective
was „Maintaining quality guidelines‟.

Significance of Difference in Procurement Objectives across Size of the Firm (Based
on No of Employees).
Ho, 6: There is no significant difference in procurement objectives across Size (based on

No of employees) of the firm.
H1, 6: There is a significant difference of procurement objectives across Size (based on No
of employees) of the firm.
TABLE 4.54: Kruskal-Wallis Test (Statistics): Procurement Objectives – Size of the
Firm (Based on No of Employees)
Test Statisticsa,b
Reduction of purchase price .870 1 .351
Optimising total costs of procurement .957 1 .328
159
Internal process optimisation .106 1 .745

Securing supplies .391 1 .532
B2B process optimisation 1.401 1 .237
Reduction of the number of suppliers .019 1 .891
Product development with suppliers .813 1 .367
Outsourcing of Operative Procurement Processes .940 1 .332
Outsourcing of Strategic Procurement Processes .086 1 .770
b. Grouping Variable: Size of the company - Based on No. of Employees
A table 4.54 show the p-value of “Maintaining quality guidelines” is 0.050 and
“Minimising warehouse costs” is 0.036, which are less than 0.05. Hence for these
statements, the null hypothesis is rejected. So there is a significant difference of
procurement objectives across Size of the firm (based on No of employees) for these
statements. For other statements of objectives, we fail to reject the null hypothesis.
Table 4.55: Kruskal-Wallis Test (Ranks): Procurement Objectives – Size of the Firm
(Based on No of Employees)
Ranks
Size of the company - Based on No. of Employees N Mean Rank
50 to 249 employees 12 31.92
Reduction of purchase
More than 249 employees 60 37.42
price
Total 72
50 to 249 employees 12 31.54
procurement
Total 72
50 to 249 employees 12 38.13
Internal process
optimisation
Total 72
50 to 249 employees 12 33.33
Securing supplies More than 249 employees 60 37.13
Total 72
50 to 249 employees 12 27.54
Maintaining quality
guidelines
Total 72
Increase in cost 50 to 249 employees 12 31.25
transparency More than 249 employees 60 37.55
160
Total 72
50 to 249 employees 12 30.63
B2B process
optimisation
Total 72
50 to 249 employees 12 25.83
Minimising warehouse
costs
Total 72
50 to 249 employees 12 35.79
Reduction of the
number of suppliers
Total 72
50 to 249 employees 12 31.75
Product development
with suppliers
Total 72
Outsourcing of 50 to 249 employees 12 41.58
operative procurement More than 249 employees 60 35.48
processes Total 72
50 to 249 employees 12 35.00
Total 72
has More than 249 employees) (mean rank 39.29 and 38.63) the most important
procurement objective and in Medium Scale Company (which has 50 to 249 employees)
(mean rank 27.54 and 25.83) least important procurement objectives were „maintaining
quality guidelines‟ and „minimizing warehouse costs‟.
4.2.1.7 Kruskal-Wallis Test is Performed with an Objective to Understand the

Significance of Difference in Procurement Objectives across Ownership of the Firm
Ho, 7: There is no significant difference in procurement objectives across Ownership of

the firm
H1, 7: There is a significant difference of procurement objectives across Ownership of the
firm
161
Table 4.56: Kruskal-Wallis Test (Statistics): Procurement Objectives – Ownership of

the Firm
Test Statisticsa,b
B2B process optimisation .382 2 .826
Outsourcing of operative procurement processes 1.264 2 .531
Outsourcing of strategic procurement processes 2.652 2 .266
b. Grouping Variable: Ownership Firm
Table 4.56 shows the p-value of “Reduction of the number of suppliers” is 0.042, which is
less than 0.05. Hence for this statement the null hypothesis is rejected. So there is a
significant difference of procurement objectives across Ownership of the firm for this
statement. For other statements of objective, we fail to reject the null hypothesis.
Table 4.57: Kruskal-Wallis Test (Ranks): Procurement Objectives – Ownership of the
Firm
Table 12: Ranks
Ownership Firm N Mean Rank
Public Sector 21 40.17
Private Sector 46 33.63
Reduction of purchase price
Joint Sector 5 47.50
Total 72
Optimising total costs of Private Sector 46 33.76
procurement Joint Sector 5 34.60
Total 72
Internal process optimisation
Total 72
Securing supplies
162

Total 72
Maintaining quality guidelines
Total 72
Increase in cost transparency
Total 72
B2B process optimisation
Total 72
Minimising warehouse costs
Total 72
Reduction of the number of Private Sector 46 36.13
suppliers Joint Sector 5 57.00
Total 72
Product development with suppliers
Total 72
Outsourcing of operative Private Sector 46 37.57
procurement processes Joint Sector 5 42.20
Total 72
Outsourcing of strategic Private Sector 46 39.07
procurement processes Joint Sector 5 37.10
Total 72
companies. From the mean rank, it can be concluded that In Joint Sector Company (mean
rank is 57.00) the most important procurement objective and in Public Sector Company
(mean rank is 32.43) least important procurement objective was „Reduction of the number
of suppliers‟.
163
4.2.1.8 Kruskal-Wallis Test is Performed With an Objective to Understand the

Significance of Difference in Reasons for Adopting E-Procurement across Industry.
Ho, 8: There is no significant difference of reasons for adopting E-Procurement across

industry.
H1, 8: There is a significant difference of reasons for adopting E-Procurement across
industry.
TABLE 4.58: Kruskal-Wallis Test (Statistics): Reasons for Adopting E-Procurement

– Types of Industry
Test Statisticsa,b
Central coordination and aggregation of demand 6.408 7 .493
Accountability 9.851 7 .197
Openness 16.034 7 .025
Transparency 11.774 7 .108
Process efficiency 4.439 7 .728
Costs/Expenditure transparency 5.278 7 .626
Reduction in purchasing price 7.808 7 .350
Price Discovery 13.416 7 .063
Process quality assurance 4.060 7 .773
Integration of suppliers into the Procurement system 9.552 7 .215
Decentralised supply of information 9.734 7 .204
Decentralisation of operative tasks 13.054 7 .071
Table 4.58 shows the p-value of “Openness” is 0.025, which is less than 0.05, hence for
this statement the null hypothesis rejected. So there is a significant difference of reasons
for adopting E-Procurement across industry. For other statements pertaining to reasons, we
fail to reject the null hypothesis.
TABLE 4.59: Kruskal-Wallis Test (Ranks): Reasons for Adopting E-Procurement –

Types of Industry
Ranks
Central coordination Automotive 5 25.10
and aggregation of Pharmaceutical 4 37.50
demand Electrical 8 33.50
Textile 7 46.07
164

Fertilizer 1 37.50
Others 11 34.59
Total 72
Automotive 5 39.80
Electrical 8 36.25
Accountability Textile 7 38.79
Fertilizer 1 18.50
Others 11 24.95
Total 72
Automotive 5 29.00
Electrical 8 25.06
Openness Textile 7 43.14
Fertilizer 1 18.50
Others 11 31.05
Total 72
Automotive 5 37.40
Electrical 8 23.88
Transparency Textile 7 41.21
Fertilizer 1 12.50
Others 11 36.86
Total 72
Automotive 5 35.00
Electrical 8 33.00
Process efficiency Textile 7 32.71
Fertilizer 1 19.00
Others 11 42.27
Total 72
Costs/expenditure Chemical & Petroleum 18 37.72
transparency Automotive 5 31.50
165
Electrical 8 38.56
Textile 7 32.14
Fertilizer 1 60.50
Others 11 41.09
Total 72
Automotive 5 38.90
Electrical 8 21.25
Reduction in Textile 7 33.50
purchasing price
Fertilizer 1 33.50
Others 11 39.23
Total 72
Automotive 5 39.70
Electrical 8 26.38
Price Discovery Textile 7 42.36
Fertilizer 1 64.50
Others 11 44.77
Total 72
Automotive 5 25.60
Electrical 8 38.63
Process quality Textile 7 37.21
assurance
Fertilizer 1 55.50
Others 11 35.14
Total 72
Automotive 5 35.40
Integration of Electrical 8 22.25
suppliers into the
Textile 7 47.00
Procurement system
Fertilizer 1 35.00
Others 11 37.55
166
Total 72
Automotive 5 23.00
Electrical 8 30.13
Decentralised supply Textile 7 51.50
of information
Fertilizer 1 51.50
Others 11 36.09
Total 72
Automotive 5 25.50
Electrical 8 23.56
Decentralisation of Textile 7 53.50
operative tasks
Fertilizer 1 53.50
Others 11 36.59
Total 72
Table 4.59 shows the mean rank of reasons for adopting an E-Procurement by the
companies. From the mean rank, it can be concluded that In Chemical and Petroleum
Industry (mean rank is 48.25) the most important reason for adopting E-Procurement and
in Fertilizer industry (mean rank is 18.50) the least important reason for adopting E-
Procurement was „Openness‟.

Significance of Difference in Reasons for Adopting E-Procurement across Size of The
Firm (Based On Investment).

Size of the firm (Based on Investment)
H1, 9: There is a significant difference of reasons for adopting E-Procurement across Size
of the firm (Based on Investment)
167

– Size of the Firm (Based On Investment)
Test Statisticsa,b
Accountability 2.658 2 .265
Openness 3.383 2 .184
Process efficiency 2.341 2 .310
Costs/Expenditure transparency .251 2 .882
Reduction in purchasing price 2.257 2 .323
Integration of suppliers into the Procurement system 1.253 2 .535
Decentralised supply of information 9.315 2 .009
Table 4.60 show the p-value of “Transparency” is 0.017 and “Decentralised supply of
information” is 0.009, which are less than 0.05, hence for these statements the null
hypothesis rejected. So there is a significant difference of reasons for adopting E-
Procurement across the size of the firm. For other statements, we fail to reject the null
hypothesis.

Size of the Firm (Based on Investment)
Ranks
Central
coordination and 10 34.40
rupees
aggregation of
demand More than 10 crore Investment 60 37.33
Total 72
10 32.70
Accountability rupees
Total 72
Openness Investment between 5 crore to 10 crore
10 30.65
rupees
168

Total 72
2 12.50
rupees
Transparency 10 28.30
rupees
Total 72
10 33.40
Process efficiency rupees
Total 72
Costs/Expenditure 10 36.10
rupees
transparency
Total 72
Reduction in 10 31.40
rupees
purchasing price
Total 72
10 27.80
Price Discovery rupees
Total 72
Process quality 10 30.95
rupees
assurance
Total 72
Integration of Investment between 5 crore to 10 crore
10 35.40
suppliers into the rupees
Procurement system More than 10 crore Investment 60 37.17
Total 72
2 20.00
rupees
Decentralised
supply of 10 21.50
rupees
information
Total 72
Decentralisation of Investment between 25 lakh to 5 crore rupees 2 22.50
169
operative tasks Investment between 5 crore to 10 crore

10 27.10
rupees
Total 72
Table 4.61 shows the mean rank of reasons for adopting an E-Procurement by the
has More than 10 crore rupees Investment) (mean rank is 38.67 and 39.55) the most
important reasons for adopting E-Procurement and in Small Scale Company (which has
Investment between 25 lakh rupees to 5 crore rupees) (mean rank is 12.5 and 20) least
important reasons for adopting E-Procurement were „Transparency‟ and „Decentralized
supply of information‟.

Significance of Difference in Reasons for Adopting E-Procurement across Size of The
Firm (Based on Investment).
Size of the firm (Based on Investment).
H1, 10: There is a significant difference of reasons for adopting E-Procurement across Size
of the firm (Based on Investment).

– Size of the Firm (Based on No. of Employees)
Test Statisticsa,b
Accountability .446 1 .504
Openness .193 1 .660
Process efficiency .346 1 .556
Costs/Expenditure transparency 1.098 1 .295
Reduction in purchasing price .300 1 .584
Integration of Suppliers into the Procurement System .053 1 .817
Decentralised supply of Information 5.177 1 .023
170

Table 4.62 show the p-value of “Decentralised supply of information” is 0.023, which is
less than 0.05; hence for this statement the null hypothesis rejected. So there is a
significant difference of reasons for adopting E-Procurement across Size of the firm. For
other objectives, we fail to reject the null hypothesis.

Size of the Firm (Based on No. of Employees)
Ranks
50 to 249 employees 12 29.75
Central coordination and aggregation
of demand
Total 72
50 to 249 employees 12 33.29
Accountability More than 249 employees 60 37.14
Total 72
50 to 249 employees 12 34.38
Openness More than 249 employees 60 36.93
Total 72
50 to 249 employees 12 31.25
Transparency More than 249 employees 60 37.55
Total 72
50 to 249 employees 12 33.67
Process efficiency More than 249 employees 60 37.07
Total 72
50 to 249 employees 12 31.25
Costs/Expenditure transparency More than 249 employees 60 37.55
Total 72
50 to 249 employees 12 33.75
Reduction in purchasing price More than 249 employees 60 37.05
Total 72
50 to 249 employees 12 31.33
Price Discovery More than 249 employees 60 37.53
Total 72
50 to 249 employees 12 29.71
Process quality assurance More than 249 employees 60 37.86
Total 72
Integration of suppliers into the 50 to 249 employees 12 35.33
Procurement system More than 249 employees 60 36.73
171
Total 72
50 to 249 employees 12 25.13
information
Total 72
50 to 249 employees 12 30.17
Decentralisation of operative tasks More than 249 employees 60 37.77
Total 72
Table shows the mean rank of reasons for adopting an E-Procurement by the companies.
From the mean rank, it can be concluded that In Large Scale Company (which has More
than 249 employees) (mean rank is 38.78) the most important reason for adopting E-
Procurement and in Medium Scale Company (which has 50 to 249 employees) (mean rank
is 25.13) the least important reason for adopting E-Procurement was „Decentralized supply
of information‟.

Significance of Difference in Importance of Further Up Gradation of IT to Support
the Procurement Process (Summated Response) across the Size of the Firm.
Ho, 11: There is no significant difference in importance of further up gradation of IT to

support the procurement process (Summated Response) across the size of the firm.
H1, 11: There is a significant difference in importance of further up gradation of IT to
support the procurement process (Summated Response) across the size of the firm.
TABLE 4.64: Descriptive Statistics of Up-Gradation of IT to Support The
Procurement Process
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Summated IT up gradation 72 36.00 62.00 53.5694 6.19138
Valid N (listwise) 72
Summation of response from the respondents was carried out on fourteen variables of
importance of further up gradation of IT to support the procurement process namely,
Optimising the Analysis of Expenditure, Supplier Assessment, Contract Management,
Development and Review of Procurement Strategy, Negotiation (Invitation to Tender,
Auctions etc.), Supplier Identification, Order Processing of Direct Goods, Automated
Invoice entry Processing, Order Processing of Indirect Goods, Order Processing of
Services, Cooperative Disposition / Planning with Suppliers, Order Processing of
172
Investment Goods, Electronic Interchange of Business Documents (EDI) and Cooperative

Product Development with Suppliers.
TABLE 4.65: Kruskal-Wallis Test (Ranks): Up-Gradation of IT to Support The

Procurement Process – Size of the Firm (Based On Investment)
Ranks
Zscore (summated Investment between 5 crore to 10 crore rupees 10 27.45
IT up gradation ) More than 10 crore Investment 60 38.91
Total 72
TABLE 4.66: Kruskal-Wallis Test (Statics): Up- Gradation of IT to Support the

Test Statisticsa,b
Zscore (summated IT up gradation )
Chi-Square 6.055
df 2
Asymp. Sig. .048
Table 4.66 shows the p-values of “importance of further up gradation of IT to support the
procurement process” is 0.048, which is less than 0.05. Hence the null hypothesis is
rejected. So there is a significant difference in importance of further up gradation of IT to
support the procurement process across the Size of the firm.
Table 4.65 shows the mean rank of “importance of further up gradation of IT to support the
procurement process”. From the mean rank, it can be concluded that the further up
gradation of IT to support the procurement process considered as most important In Large
Scale Company (which has More than 10 crore rupees Investment) (Mean rank is 38.91)
and considered least important in Small Scale Company (which has investment between 25
lakh rupees to 5 crore rupees) (Mean rank is 9.50).

Significance of Difference in Further Up Gradation of IT to Support the Procurement
Process across the Size of the Firm (Based On Investment).
173
Ho, 12: There is no significant difference in further up gradation of IT to support the

procurement process across the size of the firm.
H1, 12: There is a significant difference in further up gradation of IT to support the
procurement process across the size of the firm.
TABLE 4.67: Kruskal-Wallis Test (Statistics): Up-Gradation of IT to Support the
Test Statisticsa,b
Optimising the Analysis of expenditure 12.631 2 .002
Supplier assessment 8.745 2 .013
Contract management 5.003 2 .082
Development and review of procurement strategy 3.184 2 .204
Negotiation (invitations to tender, auctions) 5.702 2 .058
Supplier identification 1.928 2 .381
Order Processing of Direct Goods .969 2 .616
Automated Invoice entry Processing 4.189 2 .123
Order processing of indirect goods 4.439 2 .109
Order processing of services 3.781 2 .151
Cooperative disposition / planning with suppliers 5.148 2 .076
Order processing of investment goods 3.710 2 .156
Electronic interchange of business documents (EDI) 6.172 2 .046
Cooperative Product development with suppliers .967 2 .617
Table 4.67 show the p-value of “Optimising the Analysis of expenditure” is 0.002,
“Supplier assessment” is 0.013 and “Electronic interchange of business documents (EDI)”
is 0.046. These p- values are less than 0.05; hence for these statements the null hypothesis
is rejected. So there is a significant difference in further up gradation of IT to support the
procurement process across Size of the firm. For other statements, we fail to reject the null
hypothesis.
TABLE 4.68: Kruskal-Wallis Test (Ranks): Up-Gradation of IT to Support The
Ranks
Optimising the Investment between 5 crore to 10 crore rupees 10 23.00
Analysis of
expenditure More than 10 crore Investment 60 39.75
Total 72
Supplier assessment Investment between 25 lakh to 5 crore rupees 2 21.50
174
Investment between 5 crore to 10 crore rupees 10 23.60

Total 72
Contract management
Total 72
Development and Investment between 5 crore to 10 crore rupees 10 29.90
review of
procurement strategy More than 10 crore Investment 60 38.20
Total 72
Negotiation Investment between 5 crore to 10 crore rupees 10 48.40
(invitations to tender,
auctions) More than 10 crore Investment 60 35.15
Total 72
Supplier identification Investment between 5 crore to 10 crore rupees 10 43.55

Total 72
Order processing of Investment between 5 crore to 10 crore rupees 10 31.30
direct goods More than 10 crore Investment 60 37.25
Total 72
Automated invoice Investment between 5 crore to 10 crore rupees 10 25.70
entry processing More than 10 crore Investment 60 37.85
Total 72
indirect goods More than 10 crore Investment 60 38.43
Total 72
services More than 10 crore Investment 60 38.41
Total 72
Cooperative Investment between 5 crore to 10 crore rupees 10 36.45
disposition / planning
with suppliers More than 10 crore Investment 60 37.48
Total 72
175

investment goods
Total 72
Electronic Investment between 25 lakh to 5 crore rupees 2 8.75
interchange of Investment between 5 crore to 10 crore rupees 10 29.15
business documents More than 10 crore Investment 60 38.65
(EDI) Total 72
Cooperative Product Investment between 5 crore to 10 crore rupees 10 33.95
development with
suppliers More than 10 crore Investment 60 37.31
Total 72
Table 4.68 shows the mean rank of Up-gradation of IT to support the procurement process.
From the mean rank, it can be concluded that in Large Scale Company (which has More
than 10 crore rupees of Investment) (mean rank is 39.75, 39.15 and 38.65) most important
IT up gradation and in Small Scale Company (which has Investment between 25 lakh
rupees to 5 crore rupees) (mean rank is 6.5, 21.50 and 8.75 ) least important IT up
gradation to support 1) Optimizing the Analysis of expenditure, 2) Supplier assessment and
3) Electronic interchange of business documents (EDI).

Significance of Difference in Further Up Gradation of IT to Support the Procurement
Process across The Ownership of the Firm.
Ho, 13: There is no significant difference in further up gradation of IT to support the

procurement process across the ownership of the firm.
H1, 13: There is a significant difference in further up gradation of IT to support the

procurement process across the ownership of the firm.
TABLE 4.69: Kruskal-Wallis Test (Statistics): Up-Gradation o IT to Support the

Procurement Process – Ownership of the Firm.
Test Statisticsa,b
Optimising the Analysis of expenditure .106 2 .948
Supplier Assessment 7.316 2 .026
Contract management 1.376 2 .503
176
Development and review of procurement strategy 1.477 2 .478

Negotiation (invitations to tender, auctions) 3.583 2 .167
Supplier identification 1.073 2 .585
Order processing of direct goods 2.171 2 .338
Automated invoice entry processing 1.164 2 .559
Order processing of indirect goods 4.027 2 .134
Order processing of services 1.719 2 .423
Cooperative disposition / planning with suppliers 1.764 2 .414
Order processing of investment goods 1.275 2 .529
Electronic interchange of business documents (EDI) 2.632 2 .268
Cooperative Product development with suppliers .654 2 .721
b. Grouping Variable: Ownership Firm
Table 4.69 shows the p-values of “Supplier assessment” is 0.026, which is less than 0.05.
Hence for this statement the null hypothesis is rejected. So there is a significant difference
in further up gradation of IT to support the procurement process across the ownership of
the firm. For other statements, we fail to reject the null hypothesis.
TABLE 4.70: Kruskal-Wallis Test (Ranks): Up-Gradation o IT to Support the

Procurement Process – Ownership of the Firm.
Ranks
Optimising the Analysis of expenditure
Total 72
Supplier assessment
Total 72
Contract management
Total 72
Development and review of procurement Private Sector 46 35.22
strategy Joint Sector 5 31.00
Total 72
Negotiation (invitations to tender, Public Sector 21 42.74
177
auctions) Private Sector 46 34.67

Total 72
Supplier identification
Total 72
Order processing of direct goods
Total 72
Automated invoice entry processing
Total 72
Order processing of indirect goods
Total 72
Order processing of services
Total 72
Cooperative disposition / planning with Private Sector 46 34.40
Total 72
Order processing of investment goods
Total 72
Electronic interchange of business Private Sector 46 34.89
documents (EDI) Joint Sector 5 28.90
Total 72
Cooperative Product development with Private Sector 46 35.43
Total 72
Table 4.70 shows the mean rank of further Up-gradation of IT to support the procurement
process. From the mean rank, it can be concluded that in Joint Sector Company (mean rank
178
is 45.30) the most important further IT up gradation and in Private Sector Company (mean
rank is 32.43) the least important IT up gradation to support „Supplier assessment‟.

Significance of Difference in IT Tools Used for E-Procurement across Industry.
Ho, 14: There is no significant difference in IT tools used for E-Procurement across
industry.
H1, 14: There is a significant difference in IT tools used for E-Procurement across
industry.
TABLE 4.71: Kruskal-Wallis Test (Statics): IT Tools Used for E-Procurement –

Types of Industry.
Test Statisticsa,b
Material management module (ERP-System) 4.285 7 .746
Reporting and controlling tool 4.288 7 .746
Electronic Data Interchange (EDI) 14.899 7 .037
Tool For Supplier Evaluation 7.662 7 .363
Catalogue management tools for indirect goods 4.619 7 .706
Desktop Purchasing of Indirect Goods 5.447 7 .606
Contract Management Tool for Direct Goods 12.693 7 .080
Online Invitation to Tender 7.309 7 .397
Online Purchasing Auctions 5.191 7 .637
Web Platform for Scheduling & Planning with Suppliers 6.924 7 .437
Web-Platform for Product Development with Suppliers 6.380 7 .496
Table 4.71 shows the p-values of “Electronic data interchange (EDI)” is 0.037, which is
significant difference in IT tools used for E-Procurement across industry. For other
statements, we fail to reject the null hypothesis.
TABLE 4.72: Kruskal-Wallis Test (Ranks): IT Tools Used for E-Procurement –

Types of Industry.
Ranks
Material management Chemical & Petroleum 18 36.03
module (ERP-System) Automotive 5 42.00
179
Electrical 8 33.50
Textile 7 42.00
Fertilizer 1 42.00
Others 11 35.32
Total 72
Automotive 5 26.50
Electrical 8 34.38
Reporting and controlling
Textile 7 37.50
tool
Fertilizer 1 47.50
Others 11 36.95
Total 72
Automotive 5 39.10
Electrical 8 33.88
Electronic Data
Textile 7 22.93
Interchange (EDI)
Fertilizer 1 9.50
Others 11 27.23
Total 72
Automotive 5 31.40
Electrical 8 27.50
Tool For Supplier
Textile 7 44.86
Evaluation
Fertilizer 1 57.50
Others 11 32.23
Total 72
Automotive 5 32.70
Catalogue management Electrical 8 41.69
tools for indirect goods Textile 7 32.07
Fertilizer 1 8.00
Others 11 35.05
180
Total 72
Automotive 5 40.30
Electrical 8 34.31
Desktop Purchasing of
Textile 7 26.79
Indirect Goods
Fertilizer 1 7.50
Others 11 39.95
Total 72
Automotive 5 36.50
Electrical 8 22.50
Contract Management Tool
Textile 7 25.07
for Direct Goods
Fertilizer 1 28.50
Others 11 37.95
Total 72
Automotive 5 28.20
Electrical 8 37.75
Online Invitation to Tender Textile 7 37.50
Fertilizer 1 52.50
Others 11 33.41
Total 72
Automotive 5 31.20
Electrical 8 39.56
Online Purchasing Auctions Textile 7 37.57
Fertilizer 1 53.50
Others 11 36.41
Total 72
Web-Platform for Automotive 5 35.90
Scheduling & Planning with Pharmaceutical 4 47.75
Suppliers Electrical 8 35.63
Textile 7 25.57
181

Fertilizer 1 12.00
Others 11 35.86
Total 72
Automotive 5 37.40
Web-Platform for Product Electrical 8 40.50
Development with Textile 7 23.79
Suppliers Engineering& Machine Tools 18 34.94
Fertilizer 1 13.50
Others 11 35.36
Total 72
Table 4.72 shows the mean rank of IT tools used for e- procurement. From the mean rank,
it can be concluded that Chemical and Petroleum Industry (mean rank is 46.90) majorly
used IT tool and in Fertilizer industry (mean rank is 9.5) least used IT tool was „Electronic
Data Interchange (EDI)‟.

Significance o Difference in IT Tools Used for E-Procurement across Size of the Firm
(Based on Investment).
Ho, 15: There is no significant difference in IT tools used for E-Procurement across Size
of the firm.
H1, 15: There is a significant difference in IT tools used for E-Procurement across Size of
the firm.
TABLE 4.73: Kruskal-Wallis Test (Statistics): IT Tools Used for E-Procurement –

Size of the Firm (Based on Investment)
Test Statisticsa,b
Catalogue management tools for indirect goods 4.441 2 .109
Desktop Purchasing of Indirect Goods 1.365 2 .505
Online Invitation to Tender .797 2 .671
182
Online Purchasing Auctions .290 2 .865

Web Platform for Scheduling and Planning with Suppliers .901 2 .637
Web Platform for Product Development with Suppliers .375 2 .829
Table 4.73 shows the p-values of “Electronic data interchange (EDI)” is 0.041 and “Tool
for supplier evaluation” is 0.037, which are less than 0.05. Hence for these statements the
null hypothesis is rejected. So there is a significant difference in IT tools used for E-
Procurement across Size of the firm. We fail to reject the null hypothesis for other
statements.
TABLE 4.74: Kruskal-Wallis Test (Ranks): IT Tools Used for E-Procurement – Size
of the Firm (Based on Investment)
Ranks
Material Investment between 25 lakh to 5 crore rupees 2 22.25
management Investment between 5 crore to 10 crore rupees 10 38.60
module (ERP- More than 10 crore Investment 60 36.63
System) Total 72
Reporting and Investment between 5 crore to 10 crore rupees 10 40.50
controlling tool More than 10 crore Investment 60 36.23
Total 72
Electronic Data Investment between 5 crore to 10 crore rupees 10 23.95
Interchange
(EDI) More than 10 crore Investment 60 39.10
Total 72
Tool For Investment between 5 crore to 10 crore rupees 10 29.70
Supplier
Evaluation
Total 72
Catalogue Investment between 5 crore to 10 crore rupees 10 47.85
management tools
for indirect goods More than 10 crore Investment 60 34.34
Total 72
Desktop Investment between 5 crore to 10 crore rupees 10 42.95
Purchasing of
Indirect Goods More than 10 crore Investment 60 35.51
Total 72
Contract Investment between 25 lakh to 5 crore rupees 2 16.50
183
Management Tool Investment between 5 crore to 10 crore rupees 10 35.70

for Direct Goods More than 10 crore Investment 60 37.30
Total 72
Online Invitation Investment between 5 crore to 10 crore rupees 10 40.70
to Tender More than 10 crore Investment 60 36.03
Total 72
Online Purchasing Investment between 5 crore to 10 crore rupees 10 39.00
Auctions More than 10 crore Investment 60 36.23
Total 72
Web-Platform for Investment between 25 lakh to 5 crore rupees 2 23.75
Scheduling & Investment between 5 crore to 10 crore rupees 10 38.05
Planning with More than 10 crore Investment 60 36.67
Suppliers Total 72
Web-Platform for
Product Investment between 5 crore to 10 crore rupees 10 40.00
Development with More than 10 crore Investment 60 35.89
Suppliers
Total 72
Table 4.74 shows the mean rank of IT tools used for E-Procurement. From the mean rank,
it can be concluded that in Large Scale Company (which has More than 10 crore rupees
Investment) (mean rank is 39.10 and 38.62) majorly used „Electronic data interchange
(EDI)‟ and „Tool for supplier evaluation‟ to carried out Procurement. In Small Scale
Company (which has Investment between 25 lakh rupees to 5 crore rupees) (mean rank is
21.25 and 7.00) least used „Electronic data interchange (EDI)‟ and „Tool for supplier
evaluation‟ to carried out Procurement.

Significance of Difference in IT Tools Used for E-Procurement across Size of the
Firm (Based On No. of Employees).
Ho, 16: There is no significant difference in IT tools used for E-Procurement across Size
of the firm.
H1, 16: There is a significant difference in IT tools used for E-Procurement across Size of
the firm.
184
TABLE 4.75: Kruskal-Wallis Test (Statics): IT Tools Used for E-Procurement – Size
of the Firm (Based on No. of Employees)
Test Statisticsa,b
Reporting and controlling tool .128 1 .720
Tool For Supplier Evaluation .821 1 .365
Catalogue management tools for indirect goods .542 1 .462
Desktop Purchasing of Indirect Goods .004 1 .947
Contract Management Tool for Direct Goods .666 1 .415
Web-Platform for Scheduling & Planning with Suppliers .288 1 .591
Web-Platform for Product Development with Suppliers .880 1 .348
Table 4.75 shows the p-values of “Electronic data interchange (EDI)” is 0.004, which is
significant difference in IT tools used for E-Procurement across Size of the firm. For other
statements, we fail to reject the null hypothesis.
TABLE 4.76: Kruskal-Wallis Test (Ranks): IT Tools Used for E-Procurement – Size
of the Firm (Based on No. of Employees)
Ranks
50 to 249 employees 12 33.04
Material management module (ERP-
System)
Total 72
50 to 249 employees 12 34.92
Reporting and controlling tool More than 249 employees 60 36.82
Total 72
50 to 249 employees 12 21.54
Electronic Data Interchange (EDI) More than 249 employees 60 39.49
Total 72
50 to 249 employees 12 31.88
Tool For Supplier Evaluation More than 249 employees 60 37.43
Total 72
50 to 249 employees 12 40.29
Catalogue management tools for
indirect goods
Total 72
185
50 to 249 employees 12 36.83

Desktop Purchasing of Indirect
Goods
Total 72
50 to 249 employees 12 32.50
Contract Management Tool for Direct
Goods
Total 72
50 to 249 employees 12 32.54
Online Invitation to Tender More than 249 employees 60 37.29
Total 72
50 to 249 employees 12 30.67
Online Purchasing Auctions More than 249 employees 60 37.67
Total 72
50 to 249 employees 12 33.71
Web-Platform for Scheduling &
Planning with Suppliers
Total 72
50 to 249 employees 12 31.63
Web-Platform for Product
Development with Suppliers
Total 72
it can be concluded that Large Scale Company (which has More than 249 employees)
(mean rank is 39.49) majorly used and in Medium Scale Company (which has 50 to 249
employees) (mean rank is 21.54) least used „Electronic Data Interchange (EDI)‟ for
procurement.

Significance of Difference in IT Tools Used for E-Procurement across Ownership of
the Firm.
Ho, 17: There is no significant difference in IT tools used for E-Procurement across
ownership of the firm.
H1, 17: There is a significant difference in IT tools used for E-Procurement across
Ownership of the firm.
TABLE 4.77: Kruskal-Wallis Test (Statistics): IT Tools Used for E-Procurement –
Ownership of The Firm.
Test Statisticsa,b
186
Electronic Data Interchange (EDI) .101 2 .951

Catalogue management tools for indirect goods .579 2 .749
Desktop Purchasing of Indirect Goods .922 2 .631
Web-Platform for Scheduling & Planning with Suppliers .837 2 .658
Web-Platform for Product Development with Suppliers .912 2 .634
Table 4.77 shows the p-values of “Material management module (ERP-System)” is 0.033,
which is less than 0.05. Hence for this statement the null hypothesis is rejected. So there is
a significant difference in IT tools used for E-Procurement across Ownership of the firm.
For other statements, we fail to reject the null hypothesis.
TABLE 4.78: Kruskal-Wallis Test (Ranks): IT Tools Used for E-Procurement –

Ownership of The Firm.
Ranks
Material management module (ERP- Private Sector 46 34.99
System) Joint Sector 5 27.30
Total 72
Reporting and controlling tool
Total 72
Electronic Data Interchange (EDI)
Total 72
Tool For Supplier Evaluation
Total 72
Catalogue management tools for indirect
goods
187
Total 72
Desktop Purchasing of Indirect Goods
Total 72
Contract Management Tool for Direct Private Sector 46 36.15
Goods Joint Sector 5 30.10
Total 72
Online Invitation to Tender
Total 72
Online Purchasing Auctions
Total 72
Web-Platform for Scheduling & Private Sector 46 35.80
Planning with Suppliers Joint Sector 5 31.20
Total 72
Web-Platform for Product Development Private Sector 46 35.45
with Suppliers Joint Sector 5 32.50
Total 72
it can be concluded that in Public Sector Company (mean rank is 42.00) majorly used and
in Joint Sector company (mean rank is 27.30) least used „Material Management Module
(ERP - System)‟ for procurement.
4.2.1.18 To Understand The Significance of Difference in IT Tools Preferred for E-

Procurement across Industry.
Ho, 18: There is no significant difference in IT tools preferred for E-Procurement across
industry.
H1, 18: There is a significant difference in IT tools preferred for E-Procurement across
industry.
188
TABLE 4.79: Kruskal-Wallis Test (Statistics): IT Tools Preferred for E-Procurement

– Types of Industry.
Test Statisticsa,b
7.804 7 .350
Planning System)
Desktop purchasing indirect goods 3.227 7 .863
Web platform for scheduling/planning with suppliers 5.349 7 .617
Catalogue Management Tool for Indirect Goods 14.063 7 .050
Table 4.79 shows the p-values of “Catalogue management tool for indirect goods” is 0.050.
Hence for this statement the null hypothesis is rejected. So there is a significant difference
in IT tools preferred for E-Procurement across industry. For other statements, we fail to
reject the null hypothesis.
TABLE 4.80: Kruskal-Wallis Test (Ranks): It Tools Preferred for E-Procurement –

Types of Industry.
Ranks
Automotive 5 35.80
Material Management Electrical 8 43.00
Module (Enterprise Textile 7 43.00
Resources Planning System) Engineering& Machine Tools 18 31.00
Fertilizer 1 43.00
Others 11 33.18
Total 72
Automotive 5 36.50
Desktop purchasing indirect
goods
Electrical 8 30.25
Textile 7 36.50
189

Fertilizer 1 11.50
Others 11 36.50
Total 72
Automotive 5 40.90
Electrical 8 27.63
Contract Management Tool
Textile 7 30.79
for Direct Goods
Fertilizer 1 5.50
Others 11 30.68
Total 72
Automotive 5 24.20
Electrical 8 36.31
Reporting and controlling
Textile 7 39.21
tool
Fertilizer 1 48.50
Others 11 34.50
Total 72
Automotive 5 31.20
Web platform for Electrical 8 35.75
scheduling/planning with Textile 7 45.29
suppliers Engineering& Machine Tools 18 34.28
Fertilizer 1 58.50
Others 11 41.68
Total 72
Automotive 5 47.50
Electrical 8 36.13
Electronic Data Interchange
Textile 7 35.07
(EDI)
Fertilizer 1 4.00
Others 11 32.50
Total 72
Tool For Supplier Chemical & Petroleum 18 33.11
Evaluation Automotive 5 45.00
190
Electrical 8 37.50
Textile 7 39.29
Fertilizer 1 54.50
Others 11 42.14
Total 72
Automotive 5 30.10
Electrical 8 26.75
Catalogue Management
Textile 7 30.79
Tool for Indirect Goods
Fertilizer 1 6.50
Others 11 30.68
Total 72
Automotive 5 28.00
Electrical 8 25.38
Online Purchasing Auctions Textile 7 39.57
Fertilizer 1 58.00
Others 11 46.27
Total 72
Automotive 5 33.70
Electrical 8 44.81
Textile 7 35.00
Fertilizer 1 15.50
Others 11 30.45
Total 72
Automotive 5 27.60
Electrical 8 35.25
Online Invitation to Tender
Textile 7 41.43
Fertilizer 1 54.00
Others 11 38.77
191
Total 72
Table 4.80 shows the mean rank of IT tools preferred for e- procurement.. From the mean
rank, we can say that in Pharmaceutical Industry (Mean rank is 51.00) the foremost
preferred IT tool for procurement and in Fertilizer (Mean rank is 6.00) the least preferred
IT tool for procurement is „Catalogue Management Tool for Indirect Goods‟.

Significance of Difference in IT Tools Preferred for E-Procurement across the Size of
Firm.
the size of firm.
H1, 19: There is a significant difference in IT tools preferred for E-Procurement across the
size of firm.
TABLE 4.81: Kruskal-Wallis Test (Statistics): IT Tools Preferred for E-Procurement

– Size of Firm (Based on Investment)
Test Statisticsa,b
1.796 2 .407
Planning System)
Web platform for scheduling/planning with suppliers .577 2 .749
Catalogue Management Tool for Indirect Goods 1.055 2 .590
Table 4.81 shows the p-values of “Desktop purchasing indirect goods” is 0.019, which is
192
significant difference in IT tools preferred for E-Procurement across the size of firm. For
other statements, we fail to reject the null hypothesis.
TABLE 4.82: Kruskal-Wallis Test (Ranks): IT Tools Preferred for E-Procurement –

Size of Firm (Based on Investment)
Ranks
Material Management Investment between 25 lakh to 5 crore rupees 2 25.00
Module (Enterprise Investment between 5 crore to 10 crore rupees 10 39.40
Resources Planning More than 10 crore Investment 60 36.40
System) Total 72
Desktop purchasing Investment between 5 crore to 10 crore rupees 10 51.50
indirect goods More than 10 crore Investment 60 33.58
Total 72
Contract Management Investment between 5 crore to 10 crore rupees 10 38.60
Tool for Direct Goods More than 10 crore Investment 60 36.80
Total 72
Reporting and Investment between 5 crore to 10 crore rupees 10 37.55
controlling tool More than 10 crore Investment 60 37.01
Total 72
Web platform for
scheduling/planning
with suppliers More than 10 crore Investment 60 36.33
Total 72
Electronic Data Investment between 5 crore to 10 crore rupees 10 29.70
Interchange (EDI) More than 10 crore Investment 60 37.92
Total 72
Tool For Supplier Investment between 5 crore to 10 crore rupees 10 35.00
Evaluation More than 10 crore Investment 60 37.13
Total 72
Catalogue Management Investment between 5 crore to 10 crore rupees 10 41.30
Tool for Indirect Goods More than 10 crore Investment 60 35.47
Total 72
Online Purchasing Investment between 25 lakh to 5 crore rupees 2 31.00
Auctions Investment between 5 crore to 10 crore rupees 10 45.10
193

Total 72
Web-Platform for
Product Development
with Suppliers More than 10 crore Investment 60 34.11
Total 72
Online Invitation to Investment between 5 crore to 10 crore rupees 10 41.65
Tender More than 10 crore Investment 60 35.94
Total 72
Table 4.82 shows the mean rank of IT tools preferred for E-Procurement. From the mean
rank, it can be concluded that in Medium Scale Company (which has investment between 5
crore rupees to 10 crore rupees) (mean rank is 51.50) the foremost preferred IT tool for
procurement and in Large Scale Company (which has More than 10 crore rupees
Investment) (mean rank is 33.58) least preferred IT tool for procurement is „Desktop
purchasing for indirect goods‟.

Significance of Difference in IT Tools Preferred for E-Procurement across the Size of
Firm (Based on No. of Employees).
the size of firm.
H1, 20: There is a significant difference in IT tools preferred for E-Procurement across the
size of firm.
TABLE 4.83: Kruskal-Wallis Test (Statistics): IT Tools

Preferred for E-Procurement – Size of Firm (Based on No. of Employees).
Test Statisticsa,b
.019 1 .892
Planning System)
Reporting and controlling tool .394 1 .530
Web platform for scheduling/planning with suppliers .037 1 .847
194
Electronic Data Interchange (EDI) .809 1 .368

Catalogue Management Tool for Indirect Goods .275 1 .600
Online Purchasing Auctions .009 1 .923
Table 4.83 shows the p-values of “Desktop purchasing indirect goods” is 0.045, which is
significant difference in IT tools preferred for E-Procurement across the size of firm. For
other statements, we fail to reject the null hypothesis.
TABLE 4.84: Kruskal-Wallis Test (Ranks): IT Tools

Preferred for E-Procurement – Size of Firm (Based on No. of Employees).
Ranks
Material Management Module 50 to 249 employees 12 37.00
(Enterprise Resources Planning More than 249 employees 60 36.40
System) Total 72
50 to 249 employees 12 46.92
Desktop purchasing indirect goods More than 249 employees 60 34.42
Total 72
50 to 249 employees 12 41.42
Contract Management Tool for Direct
Goods
Total 72
50 to 249 employees 12 39.38
Reporting and controlling tool More than 249 employees 60 35.93
Total 72
50 to 249 employees 12 35.50
Web platform for
scheduling/planning with suppliers
Total 72
50 to 249 employees 12 32.13
Electronic Data Interchange (EDI) More than 249 employees 60 37.38
Total 72
50 to 249 employees 12 40.71
Tool For Supplier Evaluation More than 249 employees 60 35.66
Total 72
Catalogue Management Tool for 50 to 249 employees 12 39.17
Indirect Goods More than 249 employees 60 35.97
195
Total 72
50 to 249 employees 12 37.00
Online Purchasing Auctions More than 249 employees 60 36.40
Total 72
50 to 249 employees 12 46.13
Total 72
50 to 249 employees 12 38.58
Online Invitation to Tender More than 249 employees 60 36.08
Total 72
Table 4.84 shows the mean rank of IT tools preferred for e- procurement. From the mean
rank, it can be concluded that in Medium Scale Company (which has 50 to 249 employees)
(mean rank is 46.92) the foremost preferred IT tool for procurement and in Large Scale
Company (which has More than 249 employees) (mean rank is 34.42) the least preferred
IT tool for procurement is „Desktop purchasing for indirect goods‟.
4.2.2 Factor Analysis
Factor analysis is a statistical method used to describe variability among observed,

correlated variables in terms of a potentially lower number of unobserved variables called
factors. In other words, it is possible, for example, that variations in three or four observed
variables mainly reflect the variations in fewer such unobserved variables. Factor analysis
searches for such joint variations in response to unobserved latent variables. The observed
variables are modelled as linear combinations of the potential factors, plus "error" terms.
The information gained about the interdependencies between observed variables can be
used later to reduce the set of variables in a dataset. Computationally this technique is
equivalent to low rank approximation of the matrix of observed variables. Factor analysis
originated in psychometrics, and is used in behavioural sciences, social sciences,
marketing, Product management, operations research, and other applied sciences that deal
with large quantities of data.
4.2.2.1 Factor Analysis Performed on Difficulties Faced in E-Procurement

Implementation in the Selected Manufacturing Industries of Gujarat.
196
Factor Analysis was carried out on ten variables namely, High introduction costs for new
solutions, Suppliers slow to link up with the procurement system, Lack of quality of master
data, Difficulty in judging usefulness and potential of new IT solutions, Lack of user-
friendliness and user-acceptance of solutions, Solutions only address some of our
procurement processes, Solutions do not address the complexity of our processes,
Solutions are not well enough integrated (isolated applications), Lack of qualified staff
who can work with modern procurement system, Consultant expertise is lacking in IT
projects for procurement.
TABLE 4.85: Factor Analysis (KMO & Bartlett‟s Test) - Difficulties
Faced in E-Procurement Implementation
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .513
Approx. Chi-Square 302.377
Bartlett's Test of Sphericity Df 45
Sig. .000
Kaiser-Meyer-Olkin Measure of Sampling Adequacy should be greater than .70 indicating
sufficient items for each factor. Here, the result of the KMO is 0.513. Though the KMO
value is less than .07, the variance explained by Four Factors is very high, the author
considered the use of Exploratory Factor Analysis as appropriate statistical tool for this
research. Bartlett‟s Test of Sphericity should be significant (less than .05), indicating that
the correlation matrix is significantly different from an identity matrix, in which
correlations between variables are all zero. Here, Bartlett‟s test of Sphericity (Significance
– 0.000) indicates that factor analysis done with ten variables is significant.
TABLE 4.86: Factor Analysis (Communalities) - Difficulties Faced in E-Procurement
Implementation
Communalities
Initial Extraction
High introduction costs for new solutions 1.000 .571
Suppliers are Slow to link up with Procurement System 1.000 .891
Lack of quality of master data 1.000 .639
Difficulties in judging Usefulness and Potential of new Information
1.000 .819
Technology Solutions
Lack of User friendliness and User acceptance of Solutions 1.000 .565
Solutions only address some of Our Procurement processes 1.000 .856
Solution do not able to address the complexity of our processes 1.000 .783
Solutions are not well enough integrated (Isolated Applications) 1.000 .880
Lack of qualified or skilled staff who can work with modern procurement 1.000 .678
197
system
Lack of Consultant expertise in Information Technology (IT) for
1.000 .702
Procurement
Extraction Method: Principal Component Analysis.
These communalities represent the relation between the variable and all other variables
(i.e., the squared multiple correlation between the item and all other items).The table 4.86
shows that communalities of all variables are above 0.5 hence it can be stated that none of
the above variables needs to be excluded in further analysis.
TABLE 4.87: Factor Analysis (Variance) - Difficulties
Faced in E-Procurement Implementation
Total Variance Explained
Co Extraction Sums of Squared Rotation Sums of Squared
Initial Eigen values
mp Loadings Loadings
on % of Cumulative % of Cumulative % of Cumulati
Total Total Total
ent Variance % Variance % Variance ve %
1 3.403 34.035 34.035 3.403 34.035 34.035 2.350 23.496 23.496
2 1.710 17.096 51.130 1.710 17.096 51.130 2.053 20.527 44.022
3 1.224 12.238 63.368 1.224 12.238 63.368 1.708 17.077 61.099
4 1.046 10.458 73.827 1.046 10.458 73.827 1.273 12.728 73.827
5 .881 8.813 82.640
6 .733 7.333 89.973
7 .445 4.452 94.424
8 .277 2.767 97.191
9 .178 1.783 98.974
10 .103 1.026 100.000

The Total Variance Explained table shows how the variance is divided among the 10
possible factors. Note that four factors have Eigen values (a measure of explained
variance) greater than 1.0, which is a common criterion for a factor to be useful. When the
Eigen value is less than 1.0, this means that the factor explains less information than a
single item would have explained. Most researchers would not consider the information
gained from such a factor to be sufficient to justify keeping that factor. Thus, if researcher
had not specified otherwise, the computer would have looked for the best factor solution
by "rotating" factors. It can be concluded that these four factors extracted from the 10
variables are explaining about 73.827% variance of total variance.
198
TABLE 4.88: Factor Analysis (Rotated Component) - Difficulties Faced in E-

Procurement Implementation
Rotated Component Matrixa
Component
1 2 3 4
Solutions only address some of Our Procurement processes 0.892
Solutions do not address the complexity of our processes 0.868
Lack of quality of master data 0.592
Lack of qualified or skilled staff who can work with modern
0.817
procurement system
High introduction costs for new solutions 0.722
Lack of Consultant expertise in Information Technology (IT)
0.645
for Procurement
Lack of User friendliness and User acceptance of Solutions 0.541
Solutions are not well enough integrated (Isolated Applications) 0.905
0.802
Suppliers are Slow to link up with Procurement System 0.935
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
The Rotated Factor Matrix table, which contains these loadings, is key for understanding
the results of the analysis. Note that the computer has sorted the 10 difficulties faced in E-
Procurement implementation in the selected manufacturing Industries of Gujarat into four
overlapping groups of items, each which has a loading of |.50| or higher (|.50| means the
absolute value, or value without considering the sign, is greater than .50). Actually, every
item has some loading from every factor, but there are blanks in the matrix where weights
were less than |.50|. Within each factor (to the extent possible), the items are sorted from
the one with the highest factor weight or loading for that factor to the one with the lowest
loading on that first factor.
Four factors are derived from factor analysis related to difficulties faced in E-Procurement
implementation. They are named as follows:
(1) Poor data management and partial solutions: The first factor consists of three
variables of difficulty in implementing E-Procurement. They are related to lack of
availability as well as quality of master data. Also there is difficulty in
implementing it due to large and complex data.
199
(2) Costly non-user friendly solutions and lack of expertise: The second factor
consists of four variables of difficulty in implementing E-Procurement. They are
related to scarcity of quality feed employee who can work on E-Procurement
system. Also there are few consultants available for the same. Even the E-
Procurement system is not very user-friendly so as to make people accept it easily.
(3) Non-useful Non-integrated solutions: The third factor consists of two variables of
difficulty in implementing E-Procurement. They specify that the E-Procurement
solutions are not well enough integrated. Hence not all functions and areas of E-
Procurement are found in the system. Also the employees are not able to judge the
benefit of implementing the solution due to their traditional thought process.
(4) Lack of supplier readiness: The forth factor consist of only one variable related to
supplier readiness to accept the E-Procurement process. The suppliers still wants to
work with the traditional mindset. Also many are not financially sound to
implement the E-Procurement process.
4.2.2.2 Factor Analysis Performed on Reasons that Led to the Implementation of E-

Procurement in the Selected Manufacturing Industries of Gujarat.
Factor Analysis was carried out on twelve variables namely, Central Coordination and
Aggregation of Demand, Accountability, Openness, Transparency, Process Efficiency,
Costs / Expenditure Transparency, Reduction in Purchasing Price, Price Discovery,
Process Quality Assurance, Integration of Suppliers into the Procurement System,
Decentralised Supply of Information and Decentralisation of Operative Tasks.
TABLE 4.89: Factor Analysis (KMO And Bartlett's Test) - Reasons

that Led to the Implementation of E- Procurement
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .680
Approx. Chi-Square 408.608
Bartlett's Test of Sphericity Df 66
Sig. .000
Kaiser-Meyer-Olkin Measure of Sampling Adequacy should be greater than .70 indicating

sufficient items for each factor. Here, the result of the KMO is 0.680. Though the KMO
200
value is less than .07, the variance explained by Four Factors is very high, the author
considered the use of Exploratory Factor Analysis as appropriate statistical tool for this
research. Bartlett‟s Test of Sphericity should be significant (less than .05), indicating that
the correlation matrix is significantly different from an identity matrix, in which
correlations between variables are all zero. Here, Bartlett‟s test of Sphericity (Significance
– 0.000) indicates that factor analysis done with twelve variables is significant.
TABLE 4.90: Factor Analysis (Communalities) – Reasons that Led to the
Implementation of E- Procurement
Communalities
Initial Extraction
Central coordination and aggregation of demand 1.000 .772
Accountability 1.000 .708
Openness 1.000 .744
Transparency 1.000 .614
Process efficiency 1.000 .800
Costs/Expenditure transparency 1.000 .583
Reduction in purchasing price 1.000 .805
Price Discovery 1.000 .819
Process quality assurance 1.000 .493
Integration of Suppliers into the Procurement System 1.000 .798
Decentralised Supply of Information 1.000 .743
Decentralisation of Operative Tasks 1.000 .719
These communalities represent the relation between the variable and all other variables
(i.e., the squared multiple correlation between the item and all other items).The above table
shows that communalities of all variables are above 0.5 hence it can be stated that none of
the above variables needs to be excluded in further analysis.
TABLE 4.91: Factor Analysis (Variance) - Reasons that Led to the Implementation of
E- Procurement
Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Co Initial Eigen values
Loadings Loadings
mp
one % of Cumulat % of Cumulat % of Cumulat
Total Total Total
nt Variance ive % Variance ive % Variance ive %
1 4.420 36.837 36.837 4.420 36.837 36.837 2.864 23.866 23.866

2 1.716 14.297 51.134 1.716 14.297 51.134 2.366 19.720 43.586
3 1.403 11.689 62.823 1.403 11.689 62.823 2.077 17.307 60.893
4 1.060 8.834 71.657 1.060 8.834 71.657 1.292 10.764 71.657
5 .952 7.935 79.592
201
6 .691 5.758 85.350

7 .543 4.525 89.875
8 .422 3.517 93.393
9 .295 2.461 95.853
10 .202 1.686 97.539
11 .184 1.534 99.073
12 .111 .927 100.000
The Total Variance Explained table shows how the variance is divided among the 12
possible factors. Note that four factors have Eigen values (a measure of explained
variance) greater than 1.0, which is a common criterion for a factor to be useful. When the
Eigen value is less than 1.0, this means that the factor explains less information than a
single item would have explained. Most researchers would not consider the information
gained from such a factor to be sufficient to justify keeping that factor. Thus, if researcher
had not specified otherwise, the computer would have looked for the best factor solution
by "rotating" factors. It can be concluded that these four factors extracted from the 12
variables are explaining about 71.657% variance of total variance.
TABLE 4.92: Factor Analysis (Rotated Component) - Reasons that Led to the
Implementation of E- Procurement
Rotated Component Matrixa
Component
1 2 3 4
Integration of suppliers into the procurement system 0.88
Reduction in purchasing price 0.694
Decentralised supply of information 0.623
Transparency 0.586
Accountability 0.552
Central coordination and aggregation of demand 0.846
Decentralisation of operative tasks 0.828
Openness 0.620
Process efficiency 0.777
Costs/Expenditure transparency 0.761
Process quality assurance 0.519
Price Discovery 0.88
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
202
The Rotated Factor Matrix table, which contains these loadings, is key for understanding
the results of the analysis. Note that the computer has sorted the 12 reasons that has led to
the implementation of E-Procurement in the selected manufacturing Industries of Gujarat
into four overlapping groups of items, each which has a loading of |.50| or higher (|.50|
means the absolute value, or value without considering the sign, is greater than .50).
Actually, every item has some loading from every factor, but there are blanks in the matrix
where weights were less than |.50|. Within each factor (to the extent possible), the items are
sorted from the one with the highest factor weight or loading for that factor to the one with
the lowest loading on that first factor.
Four factors are derived from factor analysis related to reasons for adopting e-
procurement. They are named as follows:
(1) Supply Management with Process Accountability: The first factor consists of five
variables of reasons that have led to the implementation of e- procurement. They are
related to Procurement System Integration as well as Decentralised supply of
information. It also includes Accountability and Transparency of Procurement
process, and purchasing price reduction too.
(2) Demand Management with Lucidity: The second factor consists of three variables
of reasons that have led to the implementation of e- procurement. They are related to
Central coordination and aggregation of demand, Decentralisation of operative tasks
and Openness.
(3) Operational Efficiency of Procurement Process: The third factor consists of three
variables of reasons that have led to the implementation of e- procurement. They are
related to Process efficiency and quality assurance. It also includes the
Costs/Expenditure transparency in the procurement.
(4) Price Discovery: The fourth factor consists of one only variable of Reasons that
has led to the implementation of e- procurement.
203
4.2.3 Chi-Square Analysis
Chi-Square analysis is used to examine the similarities between two or more variables on
some characteristics of interest206. It simply a way of quantifying the various deviations
expected by chance if a hypothesis is true. Chi-square test is considered when we are
interested in finding the differences in frequency counts using nominal data. The chi-
square statistic (χ2) is used to test the statistical significance of the observed association in
a cross-tabulation. To determine whether a systematic association exists, the probability of
obtaining a value of chi-square as large as or larger than the one calculated from the cross-
tabulation is estimated. An important characteristic of the chi-square statistic is the number
of degrees of freedom (df) associated with it. That is, df = (r - 1) x (c -1). The null
hypothesis (H0) of no association between the two variables will be rejected only when the
calculated value of the test statistic is greater than the critical value of the chi-square
distribution with the appropriate degrees of freedom. Hypotheses testing were done to see
if some significant associations exist.
4.2.3.1 Chi-Square Analysis Performed to Identify the Association Between Size of

The Firm (Based on Number of Employees) and IT Solutions Used for Operative
Order Processing.
Ho, 21: there is no significance association between size of the firm (based on Number of
H1, 21: there is a significance association between size of the firm (based on Number of

Employees) - IT Solutions Used for Operative Order Processing
Crosstab
SAP MM (Materials
Management Module)
No Yes Total
Size of the 50 to 249 Count 9 3 12
206
“Chi-Square analysis” last retrieved dated 22.10.2016 from
http://www.pindling.org/Math/Statistics/Textbook/Chapter11_Chi_Square/introduction.html
204
company - employees % within Size of the company -

75.00% 25.00% 100.00%
Based on Based on No. of Employees
No. of % within SAP MM (Materials
25.70% 8.10% 16.70%
Employees Management Module)
Count 26 34 60
More than % within Size of the company -
43.30% 56.70% 100.00%
249 Based on No. of Employees
employees % within SAP MM (Materials
74.30% 91.90% 83.30%
Management Module)
Count 35 37 72
% within Size of the company -
48.60% 51.40% 100.00%
Total Based on No. of Employees
% within SAP MM (Materials
100.00% 100.00% 100.00%
Management Module)
TABLE 4.94: Chi-Square Test: Size of the Company (Based on Number of

Chi-Square Tests
Asymp. Sig. Exact Sig. Exact Sig.
Value df
(2-sided) (2-sided) (1-sided)
Pearson Chi-Square 4.014a 1 0.045
b
Continuity Correction 2.847 1 0.092
Likelihood Ratio 4.154 1 0.042
Fisher's Exact Test 0.06 0.045
Linear-by-Linear Association 3.958 1 0.047
N of Valid Cases 72
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.83.
b. Computed only for a 2x2 table
205
FIGURE 4.9: Chi-Square Test: Size of the Company (Based on Number of

In this case the observed chi-square statistic is 4.014, with 1 degree of freedom, the p value
is 0.045which is less than 0.05 which means, Null hypothesis is rejected. Therefore, there
is a significance association between size of the (based on Number of employees) and SAP
MM (Materials Management Module) IT solutions used for operative order processing.
By eyeballing the observed frequencies in the Cross tabulation matrix, it appears that From
the table, IT solutions used for operative order processing in large scale company (which
has more than 250 employees) is SAP MM (Materials Management Module) (56.70%of
them used). While, only 25.00% of them used SAP MM (Materials Management Module)
IT solutions for operative order processing in Medium Scale Company (which has 50 to
249 employees).
4.2.3.2 Chi-Square Analysis Performed to Identify the Association Between Sizes of

Firm (Based on Number of Employees) and Method Used to Exchange the Electronic
Business Documents with Suppliers.
Ho, 22: there is no significance association between size of firm (based on Number of
employees) and method used to exchange the Electronic business documents with
suppliers.
H1, 22: there is no significance association between size of the firm (based on Number of
employees) and method used to exchange the Electronic business documents with
suppliers.
206

Employees) - Method Used to Exchange the Electronic Business Documents with
Suppliers.
Crosstab
Fully integrated Solution (EDI)
directly with Suppliers
No Yes Total
Count 9 3 12
75.00% 25.00% 100.00%
50 to 249 Based on No. of Employees
employees % within Fully integrated
Size of the
Solution (EDI) directly with 28.10% 7.50% 16.70%
company -
Suppliers
Based on
Count 23 37 60
No. of
Employees More than 38.30% 61.70% 100.00%
Based on No. of Employees
249
% within Fully integrated
employees
Suppliers
Count 32 40 72
44.40% 55.60% 100.00%
Based on No. of Employees
Total
% within Fully integrated
Suppliers
TABLE 4.96: Chi-Square Tests: Size of the Company (Based on Number of
Suppliers.
Chi-Square Tests
Asymp. Sig. (2- Exact Sig. Exact Sig. (1-
Value df
sided) (2-sided) sided)
Pearson Chi-Square 5.445a 1 0.02
b
Continuity Correction 4.061 1 0.044
Likelihood Ratio 5.546 1 0.019
Fisher's Exact Test 0.027 0.022
Linear-by-Linear Association 5.369 1 0.02
N of Valid Cases 72
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.33.
b. Computed only for a 2x2 table
207
FIGURE 4.10: Chi-Square Test: Size of the Company (Based on Number of

Suppliers.
The observed chi-square statistic is 5.115, with 1 degree of freedom, the p value is 0.022
which is less than 0.05 which means, Null hypothesis is rejected. Therefore, there is a
significance association between size of the (based on Number of employees) and fully
integrated solution (EDI) directly with the supplier method used to exchange the electronic
business documents with suppliers.
By eyeballing the observed frequencies in the cross tabulation matrix, it appears that From
the table, method used to exchange the electronic business documents with suppliers in
large scale company (which has more than 250 employees) is Fully integrated solution
(EDI) directly with the supplier (61.70%of them used). While, only 25.00%of them used
fully integrated solution (EDI) directly with the supplier method used to exchange the
electronic business documents with suppliers in Medium Scale Company (which has 50 to
249 employees).
208
Summary of Major Findings, Limitations and
Scope for Future Research
CHAPTER 5

5.0 Introduction
This Chapter discusses the findings of the study, its limitations and scope for future
research. Given below are the major findings (Conclusions) based on the analysis of data
given in the previous chapter.
5.1 Conclusions - Major Findings:
Multi National Companies (MNCs) are in favour of starting and expanding their businesses
in India owing to its high economic growth and favourable business environment.
Manufacturing sector‟s contribution in India‟s GDP is very high. In such a situation,
western corporates are eying on those Indian Manufacturing firms that have either adopted
E-Procurement practices or in the process of adoption of E-Procurement. While there are a
number of research studies reported in many other countries, not many have been carried
out to study E-Procurement practices adopted by the manufacturing firm in India.
This study addresses a gap in knowledge by investigating E-Procurement practices in the

selected manufacturing industrial units of Gujarat. According to the best knowledge of the
author based on an extensive literature survey, there has not been a comparably extensive
study about this topic in India. The study‟s findings will benefit Information System
Researchers, Practicing Managers and E-Procurement vendors in several ways. The major
outcomes of this study have been derived from the comparisons of E-Procurement process
in selected manufacturing Industrial units of Gujarat. For this purpose, hypothesized
relations were established to compare the E-Procurement practices adopted by the firm and
types of Industry, Size of the company and Ownership of the firm. It also helps to
understand the reasons and difficulties faced by the firm along with IT tools used and
209
preferred by them. The research will also help to understand the extent to which IT tools
can be used in e- procurement and the documents exchanged in E-Procurement through
EDI.
This detailed research was carried out in 72 manufacturing industrial units from across the
State of Gujarat.
The major findings have been summarized in the below mentioned section of the
chapter, objective wise:
Objective 1: To study the present status and to compare E-Procurement in selected

manufacturing industrial units of Gujarat.
5.1.1 Procurement Objectives
5.1.1.1 The important procurement objectives considered by the majority of

respondents are (Refer topic 4.1.1.5 in Chapter 4):
 Reduction of the purchasing price
 Maintaining quality guidelines
 Business to Business (B2B) process optimisation
 Optimising total costs of procurement
 Securing supplies, and
 Minimising warehouse costs.
5.1.1.2 The study found the significant difference in procurement objectives across
Industry, Size of the firm and Ownership of the firm (Refer topic 4.2.1.3 to 4.2.1.7 in
Chapter 4).
 In Fertilizer Industry the most important procurement objective is „Reduction of
the purchasing price‟ while it is least important procurement objective in Electrical
Industry.
 In Pharmaceutical Industry the most important procurement objective is
„optimising total costs of procurement‟ while it is least important procurement
objectives in Electrical Industry.
 In Large Scale Companies, the most important procurement objectives is
„optimizing total costs of procurement‟ and „minimizing warehouse costs‟. In
210
Large Scale Company (which has More than 249 employees) the most important
procurement objectives are „maintaining quality guidelines‟ and „minimizing
warehouse costs‟.
 In Small Scale Company, the most important procurement objective is
„Maintaining quality guidelines‟ and the least important procurement objective is
„optimizing total costs of procurement‟.
 In Medium Scale Company, least important procurement objective is
„minimizing warehouse costs‟ and „Maintaining quality guidelines‟.
 In Joint Sector Company, the most important procurement objective is „Reduction
of the number of suppliers‟ while it is the least important procurement objective in
Public Sector Company.
5.1.2 Extent of Information Technology (IT) Tools Used in E- Procurement
5.1.2.1 Almost all respondent have used Information Technology to a ‘Great extent’ to
carry out the Procurement function (Refer topic 4.1.1.6 in Chapter 4).
5.1.2.2 The present study attempted to study the relation between Extent of
Information Technology (IT) Tools used in e- procurement and Industry, Size and
Ownership of the firm.
The findings are given below (Refer topic 4.1.2.1 to 4.1.2.4 in Chapter 4):
 Fertilizer Industry has used Information Technology to a ‘very great extent’ to

carry out the Procurement function.
 While, Chemical & Petroleum industry, Automotive industry, Pharmaceutical
industry, Electrical industry, Textile industry and Engineering & Machine tool
industry have used Information Technology to ‘great extent’.
 Public Sector Companies, Private Sector Companies and Joint Sector
Companies have used IT to ‘great extent’ to carry out the Procurement function.
 Large Scale Companies and Small Scale Companies have used IT to ‘great
extent’ while Medium Scale Companies (which has Investment between 5 Crore
and 10 Crore rupees) have used IT to „moderate extent’ to carry out the
Procurement function.
211
5.1.3 Difficulties Faced in E-Procurement Implementation
5.1.3.1 The major difficulties faced in E-Procurement implementation as reported by the

respondents are (Refer topic 4.1.1.14 in Chapter 4):
 Suppliers slow to link up with the procurement system
 Lack of quality of master data
 Lack of qualified staff who can work with modern procurement system, and
 High introduction costs for new solutions.
5.1.3.2 The statistical significance for the difference in difficulties faced in E-

Procurement across industry and Size of the company has been studied.
Researcher gives below the salient findings (Refer topic 4.2.1.1 to 4.2.1.2 in Chapter 4):
 Pharmaceutical Industry has faced more difficulties in ‘Solutions only address
some of our procurement processes’ and ‘Solutions do not address the complexity
of our processes’ while, Fertilizer Industry have faced less difficulties in it.
 Large Companies based on investment, have faced more difficulties in ‘High
introduction costs for new solutions’ while Small Scale Company have faced less
difficulty in it.
5.1.4 Reasons that have led to the Implementation of E-Procurement
5.1.4.1 The main reasons that have led to the implementation of E-Procurement in the
selected manufacturing Industries of Gujarat are (Refer topic 4.1.1.7 in Chapter 4):
 Accountability
 Openness
 Transparency
 Process efficiency
 Price Discovery
 Costs/expenditure transparency
 Central coordination, and
 Aggregation of demand.
212
5.1.4.2 The present endeavored to study the statistical significant of the difference of
reasons that have led to the implementation of E-Procurement s across Industry, Size
of the firm and Ownership of the firm.
The followings are the outcomes of the analysis (Refer topic 4.2.1.8 to 4.2.1.10 in Chapter
4):
 In Chemical and Petroleum Industry, the most important reason for adopting E-
Procurement is ‘Openness’, while it is considered as the least important reason in
Fertilizer industry.
 In Large Scale Companies based on investment, the most important reasons for
adopting E-Procurement are ‘Transparency’ and ‘Decentralized supply of
information’, while these are considered as the least important reasons in Small
Scale Companies.
 In Large Scale Companies based on number of employees (More than 249
employees), the most important reason for adopting E-Procurement is
‘Decentralized supply of information’ while it is the least important reason in
Medium Scale Company (which has 50 to 249 employees).
5.1.5 Information Technology (IT) tools used for Procurement
5.1.5.1 Frequently used information technology tools for procurement are (Refer topic
4.1.1.8 in Chapter 4):
 Materials management module (ERP-System)
 Reporting & controlling tool
 Online invitations to tender, and
 Online purchasing auctions.
5.1.5.2 The statistical significance of difference in Information Technology tools used
for E-Procurement across industry, Size of the firm and Ownership of the firm was
found.
 In Chemical and Petroleum Industry, the most widely used Information
technology tool for procurement is ‘Electronic data interchange (EDI)’ while it is
least used in Fertilizer industry.
 In Large Scale Companies, the most of the companies used Information
technology tools of ‘Electronic data interchange (EDI)’ and ‘Tool for supplier
213
evaluation’ while these are least used in Small Scale Companies based on
investment and in Medium Scale Companies (which has 50 to 249 employees).
 In Public Sector Company, the most widely used Information technology tool for
procurement is ‘Material Management Module (ERP - System)’ while it least used
in Joint Sector company.
5.1.6 Information Technology (IT) Solution Used for Operative Order Processing
5.1.6.1 Enterprise and Resources Planning (ERP) and SAP MM (materials management
module) are foremost used Information technology solutions for operative order processing
(Refer topic 4.1.1.9 in Chapter 4).
5.1.6.2 The present study found linkages between the extent of use of Information
Technology (IT) solution used for operative order processing across the Industry, Size
and Ownership of the firm.
 Enterprise Resources Planning (ERP is foremost used IT solutions for operative
order processing in Chemical & Petroleum Industry, Automotive Industry,
Pharmaceutical Industry, Electrical Industry, Textile Industry, and
Engineering & Machine Industry.
 SAP MM (materials management module) is foremost used IT solutions for
operative order processing in Chemical & Petroleum Industry, Automotive
Industry, Textile Industry, Fertilizer Industry and Engineering & Machine
Industry.
 SAP BBP/EBP (The SAP solutions Enterprise Buyer Professional (EBP) and its
preceding version (BBP) is foremost used IT solutions for operative order
processing in automotive industry.
 Enterprise Resources Planning (ERP) is foremost used IT solutions for operative
order processing in Public and Private Sector Company.
 SAP MM (materials management module)’ is foremost used IT solutions for
operative order processing in Public, Private and Joint Sector Company
 Purchasing Card (VISA, Airplus, Amexco ...) and Product development in house is
foremost used IT solutions for operative order processing in Joint Sector
Company.
214
 Enterprise Resources Planning (ERP) is foremost used IT solutions for operative
order processing in Small Scale Company as per the investment, Medium Scale
Company, and Large Scale Company.
5.1.6.3 There is association found between size of the firm (based on Number of
employees) and IT solutions used for operative order processing (Refer topic 4.2.3.1 in
Chapter 4).
 SAP MM (materials management module)’ is foremost used IT solutions for
operative order processing in Large scale company (which has more than 250
employees) while it is least used in Medium Scale Company (which has 50 to 249
employees).
5.1.7 Information Technology (IT) Tools Preferred for E-Procurement
5.1.7.1 Majority of Manufacturing Industrial units preferred (Refer topic 4.1.1.10 in

Chapter 4):
 Material Management Module (ERP System)
 Reporting & Controlling tool
 Online Invitations to tender, and
 Tool for supplier evaluation.
5.1.7.2 Study found the significance of difference in Information Technology (IT)

tools preferred for E-Procurement across industry and Size of the firm.
The following are the findings (Refer topic 4.2.1.18 to 4.2.1.20 in Chapter 4):
 Catalogue management tool for indirect goods’ is the foremost preferred IT tool
for procurement in Pharmaceutical Industry while it is least preferred in
Fertilizer industry.
 Desktop purchasing for indirect goods is the foremost preferred IT tool for
procurement in Medium Scale Company while it is least preferred in Large
Scale Company.
5.1.8 Number of Supplier with Whom Business Documents were Exchanged by

Means of EDI/Web EDI during the Last Six Months.
215
5.1.8.1 Majority of Manufacturing Industrial Units have exchanged their documents with
More than Hundred suppliers followed Eleven to Forty nine suppliers by means of EDI/
Web EDI during the last six months (Refer topic 4.1.1.11 in Chapter 4).
5.1.8.2 Study found the relation between Number of suppliers with whom business
document were exchanged by means of EDI/Web EDI during the last six months and
Industry, Size and Ownership of the firm.
 Chemical & Petroleum, Automotive, Electrical, Textile, Fertilizers and
Engineering & Machine tool Industries have exchanged business documents
with „More than hundred Suppliers’ while Pharmaceutical Industries have
exchanged business documents with ‘eleven to forty nine Suppliers’ by means of
EDI/Web EDI during the last six months.
 Public Sector Companies, Private Sector Companies and Joint Sector
Companies have exchanged their business documents with ‘More than hundred
Suppliers’ by means of EDI/Web EDI for the last six months.
 Small Scale Company and Medium Scale Company (which has investment
between 5 Crore to 10 Crore rupees) have exchanged business documents with
‘Fifty to Ninety nine Suppliers’.
 Large Scale Company has exchanged business documents with ‘more than
hundred Suppliers’.
 Medium Scale Company (which has 50 to 249 employees) has exchanged
business documents with ‘Eleven to Forty Nine Suppliers’ by means of EDI/Web
EDI for the last six months.
5.1.9 Eelectronics Documents Exchanged with Suppliers More Often by Means of

EDI/Web EDI during the Last Six Months
5.1.9.1 Majority of manufacturing units have exchanged „Purchase Order’, ‘Invoice’,

‘Order confirmation’ and ‘Despatch advice’ with suppliers ‘once in a week, While
‘Request for quote / bid with suppliers’ were exchanged once in a month (Refer topic
4.1.1.12 in Chapter 4).
216
5.1.9.2 Study found the relation between Eelectronics documents exchanged with
suppliers more often by means of EDI/Web EDI from last six months and Industry,
Size and Ownership of the firm.
 Chemical & Petroleum, Automotive, Electrical, Textile, Pharmaceutical,
Fertilizers and Engineering & Machine Industries have exchanged Purchase
order, Invoice, Order confirmation and Despatch advice ‘once in a week’.
 Requests for quote/bid have been exchanged „once in a week‟ in Chemical &
Petroleum, Automotive, Fertilizers and Engineering & Machine Industries ,
while it is exchanged „once in month‟ in Electrical and Textile industry and „once
in three month‟ in Pharmaceutical Industry.
 Private companies and Public Sector companies have exchanged Purchase order,
Invoice, Order Confirmation, Request for quote/bid and Despatch advice ‘Once in
a week’. While, Request for quote/bid have been exchanged ‘Once in a three
month’ in Public Sector.
 Small Scale companies, Medium Scale companies and Large Scale companies
have exchanged Purchase order, Invoice, Order Confirmation and Despatch advice
‘Once in a week’.
 Request for quote/bid have been exchanged ‘Once in a three month’ in Medium
Scale and ‘Once in a month’ in Small Scale Companies and Medium Scale
Company (Which has 50 to 249 employees).
5.1.10 Methods Used to Exchange Electronic Business Documents with Suppliers
5.1.10.1 Majority of all manufacturing companies have used ‘Fully Integrated Solution
(EDI) directly with supplier’ and ‘Web Supplier portal via Business to Business (B2B)
marketplace/transaction platform (Web EDI)’ methods to exchange electronics business
documents with supplier (Refer topic 4.1.1.13 in Chapter 4).
5.1.10.2 Study found the relation between Methods used to exchange electronic
business documents with suppliers and Industry, Size and Ownership of the firm.
217
 In Chemical & Petroleum industry, Automotive industry, Textile industry and
Fertilizer industry, the foremost method used to exchange electronic business
documents is ‘Fully Integrated Solution (EDI) directly with supplier’.
 In Pharmaceutical industry and Electrical Industry, the foremost method used
to exchange electronic business documents is ‘Company run supplier portal (Web
EDI)’.
 In Engineering and Machine industry and Fertilizer Industry the foremost
method used to exchange electronic business documents is ‘Web supplier portal
via B2B marketplace/transaction platform (Web EDI’).
 In Fertilizer Industry the foremost method used to exchange electronic business
documents is ‘Fully integrated solution (EDI) via B2B marketplace/transaction
platform.
 In Public Sector Companies, Private Sector Companies and Joint Sector
Companies, the foremost method used to exchange electronic business
documents is ‘Fully integrated solution (EDI) directly with the supplier’ and ‘Web
supplier portal via B2B marketplace/transaction platform (Web EDI)’.
 In Small and Medium companies the foremost method used to exchange
electronic business documents is ‘Company run supplier portal (Web EDI)’ and
‘Web supplier portal via B2B marketplace/transaction platform (Web EDI)’.
 In Large scale companies the foremost method used to exchange electronic
business documents is ‘Fully integrated solution (EDI) directly with the supplier’
and ‘Web supplier portal via B2B marketplace/transaction platform (Web EDI)’.
5.1.10.3 There is an association found between size of firm (based on Number of

employees) and method used to exchange the electronic business documents with
suppliers (Refer topic 4.2.3.2 in Chapter 4).
 In large scale company (which has more than 250 employees), the foremost
method used to exchange electronic business documents is „Fully integrated
solution (EDI) directly with the supplier‟, while it is least used in Medium Scale
Company (with 50 to 249 employees).
5.1.11 Who Initiates and Drives the Development (Up Gradation) of IT for
Procurement
218
5.1.11.1 Almost all respondent agreed that the ‘Top management’, ‘Procurement
department’ and ‘IT Department’ have initiated the development (up gradation) of
Information Technology for Procurement (Refer topic 4.1.1.15 in Chapter 4).
5.1.11.2 Study found the relation between who initiates and drives the development
(up gradation) of IT for procurement and Industry, Size and Ownership of the firm.
The findings are (Refer topic 4.1.2.21 to 4.1.2.24 in Chapter 4):
 In Chemical and Petroleum Industry and Electrical Industry, the further up
gradation of Information Technology for Procurement is initiated by the ‘Top
management’ and ‘IT department’.
 In Pharmaceutical Industry, Engineering & Machine Tools Industry, Fertilizer
Industry and Textile Industry, the further up gradation of Information
Technology for Procurement is initiated by the ‘Procurement department’ and ‘Top
management’.
 In Automotive Industry, the further up gradation of Information Technology for
Procurement is initiated by the ‘IT department’ and ‘Top management’.
 In Public Sector Companies, Private Sector Companies and Joint Sector
Companies, the further up gradation of Information Technology for Procurement is
initiated by the ‘Top management’ and ‘Procurement department’.
 In Small Scale Company the further up gradation of Information Technology for
Procurement is initiated by the ‘Process Leadership’, ‘Top Management’ and
‘Business Development Department’.
 In Medium Scale Company the further up gradation of Information Technology
for Procurement is initiated by the ‘Top management’ and ‘Procurement
department’.
 In Large Scale Company the further up gradation of Information Technology for
Procurement is initiated by the ‘Top management’, ‘Procurement department’ and
‘IT department’.
5.1.12 Further Up-Gradation of Information Technology (IT) to Support the

Procurement Process
5.1.12.1 Majority of the respondents have considered the importance of further up

gradation of Information Technology to support ‘Optimising the Analysis of expenditure’,
‘Supplier assessment’, ‘Contract Management’, ‘Development and review of procurement
219
strategy’, ‘Order processing of indirect goods’, ‘Cooperative product development with
suppliers’ and ‘Electronic interchange of business documents (EDI)’ (Refer topic 4.1.1.16
and 4.1.1.17 in Chapter 4).
5.1.12.2 Study found the significance of difference in further up gradation of IT to

support the procurement process across the Size of the firm and Ownership of the
firm.
The findings are given (Refer topic 4.2.1.11 to 4.2.1.13 in Chapter 4):
 In Large Scale Companies based on investment, the most important further up
gradation of Information Technology to Support have been found as ‘Optimizing
the Analysis of expenditure’, ‘Supplier assessment’ and ‘Electronic interchange of
business documents (EDI)’ while these are considered as the least important IT up
gradation in Small Scale Company (which has Investment between 25 lakh rupees
to 5 crore rupees).
 In Joint Sector Companies, the most important further up-gradation of
Information Technology to Support has been found as ‘Supplier assessment’ while
it is considered least important in Private Sector Company.
Objective 2: To explore/ identify the difficulties faced in E-Procurement

implementation.
5.2.1.1 The major difficulties faced in E-Procurement implementation as reported by the

respondents are shown in topic 5. 1.3.1 in chapter 5.
5.2.1.2 The statistical significance of the difference found in difficulties faced in E-
Procurement across industry and Size of the company has been studied. Findings are
shown in topic 5. 1.3.2 in chapter 5.
5.2.1.3 Four factors are derived from exploratory factor analysis related to difficulties
faced in E-Procurement implementation (Refer topic 4.2.2.1 in Chapter 4). They are
named as
 Poor data management and partial solutions
 Costly non-user friendly solutions and lack of expertise
 Non-useful Non-integrated solutions, and
 Lack of supplier readiness.
220
Objective 3: To identify the reasons that has led to the implementation of E-
Procurement in the selected manufacturing Industries of Gujarat.
5.3.1.1 The main reasons that have led to the implementation of E-Procurement in the
selected manufacturing Industries of Gujarat are shown in topic 5.1.4.1 in chapter 5.
5.3.1.2 The statistical significant of the difference found in reasons that have led to the
implementation of E-Procurement across Industry, Size of the firm and Ownership of the
firm. Findings are shown in topic 5.1.4.2 in chapter 5.
5.3.1.3 Four factors have been found from the exploratory factor analysis (Refer topic
4.2.2.2 in Chapter 4). These are named as:
 Supply Management with Process Accountability
 Demand Management with Lucidity
 Operational Efficiency of Procurement Process, and
 Price Discovery.
Objective 4: To study the extent to which Information Technology (IT) tools are used
in e- procurement.
5.4.1 Extent of Information Technology (IT) tools used in E- Procurement

5.4.1.1 Almost all respondent have used Information Technology to a ‘Great extent’ to
carry out the Procurement function. (Refer topic 5.1.2.1 in Chapter 5).
5.4.1.2 The relation found between extent of Information Technology (IT) tools used in E-
Procurement and Industry, Size and Ownership of the firm. (Refer topic 5.2.2.2 in
Chapter 5).
5.4.2 Information Technology (IT) tools used for Procurement

5.4.2.1 Frequently used information technology tools for procurement are shown in topic
5.1.5.1 in chapter 5.
5.4.2.2 The statistical significance of difference found in Information Technology tools
used for E-Procurement across industry, Size of the firm and Ownership of the firm was
found. Findings are shown in topic 5.1.5.2 in chapter 5.
221
5.4.3 Information Technology (IT) Solution Used for Operative Order Processing
5.4.3.1 Enterprise and Resources Planning (ERP) and SAP MM (materials management
module) are foremost used Information technology solutions for operative order
processing.
5.4.3.2 The present study found the extent of use of Information Technology (IT) solution
used for operative order processing across the Industry, Size and Ownership of the firm.
Findings are shown in topic 5.1.6.2 in chapter 5.
5.4.3.3 There is association found between size of the firm (based on Number of
employees) and IT solutions used for operative order processing. Findings are shown in
topic 5.1.6.3 in chapter 5.
5.4.4 Information Technology (IT) Tools Preferred for E-Procurement
5.4.4.1 Most Preferred Information Technology (IT) Tools for E-Procurement are shown
in topic 5.1.7.1 in chapter 5.
5.4.4.2 Study found the significance of difference in Information Technology (IT) tools
preferred for E-Procurement across industry and Size of the firm. Findings are shown in
topic 5.1.7.2 in chapter 5.
Objective 5: To study the documents exchanged in E-Procurement through

Electronic Data Inter change (EDI).
5.5.1 Number of Supplier with Whom Business Documents were Exchanged by

Means of EDI/Web EDI during the Last Six Months
5.5.1.1 Majority of Manufacturing Industrial Units have exchanged their documents with
More than Hundred suppliers followed Eleven to Forty nine suppliers by means of EDI/
Web EDI during the last six months.
5.5.1.2 Study found the relation between Number of suppliers with whom business
document were exchanged by means of EDI/Web EDI during the last six months and
Industry, Size and Ownership of the firm. The Findings are shown in topic 5.1.8.2 in
chapter 5.
5.5.2 Eelectronics Documents Exchanged with Suppliers More Often by Means of

EDI/Web EDI during the Last Six Months
222
5.5.2.1 Majority of manufacturing units have exchanged „Purchase Order‟, „Invoice‟,
„Order confirmation‟ and „Despatch advice‟ with suppliers „once in a week, While
„Request for quote / bid with suppliers‟ were exchanged once in a month.
5.5.2.2 Study found the relation between Eelectronics documents exchanged with suppliers
more often by means of EDI/Web EDI from last six months and Industry, Size and
Ownership of the firm. Findings are shown in topic 5.1.9.2 in chapter 5.
5.5.3 Methods Used to Exchange Electronic Business Documents with Suppliers

5.5.3.1 Majority of all manufacturing companies have used „Fully Integrated Solution
(EDI) directly with supplier‟ and „Web Supplier portal via Business to Business (B2B)
marketplace/transaction platform (Web EDI)‟ methods to exchange electronics business
documents with supplier.
5.5.3.2 Study found the relation between Methods used to exchange electronic business
documents with suppliers and Industry, Size and Ownership of the firm. Findings are
shown in topic 5.1.10.2 in chapter 5.
5.5.3.3 There is an association found between size of firm (based on Number of
employees) and method used to exchange the electronic business documents with
suppliers. Findings are shown in topic 5.1.10.3 in chapter 5.
Objective 6: To identify the scopes for further up-gradation of Information

Technology (IT) to support the E-Procurement process.
5.6.1.1 Majority of the respondents have considered the importance of further up gradation
of Information Technology to support ‘Optimising the Analysis of expenditure’, ‘Supplier
assessment’, ‘Contract Management’, ‘Development and review of procurement strategy’,
‘Order processing of indirect goods’, ‘Cooperative product development with suppliers’
and ‘Electronic interchange of business documents (EDI)’.
5.6.1.2 Study found the significance of difference in further up gradation of IT to support
the procurement process across the Size of the firm and Ownership of the firm. Findings
are shown in topic 5.1.12.2 in chapter 5.
5.2 Limitations of the Study

This study had some limitations and there is a further scope of research in this area by
overcoming those limitations.
223
 Limitations of small sample size negate the ability to generalise.
 The study is limited to manufacturing industrial units of Gujarat. The study could
have been extended to some other states of India as well.
 Respondents‟ error may subsist in the study (Malhotra & Das (2005). Respondents‟
may not be able to fill out the entire questionnaire due to certain reasons.
5.3 Scopes for Future Research
It is essential for academicians and practitioners to know the role that E-Procurement plays
in vital business outcomes.
 The future studies can address the new areas of Improvement and analyze in detail,
the integration of Mobile and Collaborative procurement functions in to existing
Solutions.
 Future study could be investigating the relationship between the use of Integrative
E-Procurement applications and Business results such as Cost savings, Profitability
and Quality of Product or Service.
 Investigation of a wider range of variables in E-Procurement adoption such as

Characteristics of technology, Environmental factors, Individual adopter factors
and other organizational factors such as corporate strategy, Company Policies,
Innovativeness and Management behaviours will provide further insight.
 This research is based on the response from executives of the firm who are
practising E-Procurement. The responses of supplier also need to be analyzed
which may provide important insight into the implementation of E-Procurement. It
is necessary to know the supplier‟s views on E-Procurement applications which
facilitate coordination and market mechanism (bargaining).
 Future research could be analyzing the relationship among the E-Procurement,

Supply chain integration and Supply chain performance.
224
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160. World Bank (2003), “Electronic Government Procurement (e-GP): World Bank
Draft Strategy”, last retrieved on 01.04.2012 Available at
http://siteresources.worldbank.org/INTPROCUREMENT/Resources/eGPStrategyfo
rtheWBword.doc.
239
Report
161. Aberdeen Group Inc. (2001), “Best Practices in E-Procurement: The Abridged
Report”, Aberdeen Group Boston, Massachusetts, last retrieved dated 05.06.2013
from http://www.cosmo-one.gr/educommerce/wp-content/img/en2_1.pdf
162. Aberdeen Group Inc. (2007), “E-Procurement: Trials and Triumphs”, last retrieved
dated 05.06.2013 from http://www.enporion.com/media/whitepapers/eprocurement
_trials_and_triumphs.pdf
163. Aberdeen Group, Inc. (2005), “Best Practices in E-Procurement (Reducing Costs
and Increasing Value through Online Buying)”, Massachusetts, last retrieved dated
05.06.2013 from http://www.cosmo-one.gr/educommerce/wp-content/img/en2_
1.pdf
164. Annual Report (2009-10), “Ownership pattern of MSMEs” Ministry of Micro,
Small & Medium Enterprise” , Government of India
165. PEPPOL (2008), “About Peppol, Pan-European Public Procurement Online”,
Available at http://www.peppol.eu/About_PEPPOL (Accessed April 1, 2012).
166. Procurement manual (2009), “Procurement manual: for activities funded through
the National Land Transport Programme”, NZ Transport Agency last retrieved
01.08.2013 from https://www.nzta.govt.nz/resources/procurement-manual/
167. UN Procurement practitioner‟s Handbook (2006), “Interagency Procurement
Working Group (IAPWG)” last retrieved dated 29.07.2013 from
https://www.ungm.org/Areas/Public /pph/channels/PPH.pdf
168. UN Procurement practitioner‟s Handbook (2006), “Interagency Procurement
Working Group (IAPWG)” last retrieved dated 29.07.2013 from
https://www.ungm.org/Areas/Public/pph/channels/PPH.pdf
169. Ware, GT, et al., (2012), 'Corruption in Procurement ', in A Graycar & R Smith
(eds), Handbook of Global Research and Practice in Corruption, illustrated edn,
Edward Elgar Publishing, UK.
240
List of Appendice
Appendix A: Questionnaire
Name of your organization:

________________________________________________________________________
Select the Industry based on Product

Chemical and Petroleum: Automotive:
Pharmaceutical: Electrical:
Textile: Engineering and Machine tools:
Fertilizer:
Other:
PleaseSpecify_____________________________________________________________
Ownership Form
Public sector: Private sector:
Cooperative sector: Joint sector:
Size of the company (Investment in plant machinery)

Does not exceed 25 lakh rupees:
More than 25 lakh rupees but does not exceed 5 crore rupees:
More than 5 crore rupees but does not exceed 10 crore rupees:
More than 10 crore rupees:
Size of the company (numbers of employees)

Less than 10 employees: 10 to 49 employees:
50 to 249 employees: More than 249 employees:
Name: ____________________________________________________
241
Job title:
Procurement / Purchase Head / Manager:
Supply chain Head / Manager:
Material Management Head / Manager:
Information System Head / Manager:
Other functions:
1. Please rate the following procurement objectives based on its importance in your
organization?
Not
Not Most
Procurement Objectives Important Neutral Important
Important Important
at all
Reduction of the purchasing
price
procurement
Internal process optimisation
Securing supplies
Maintaining quality guidelines
Increase in cost transparency
B2B process optimisation
Minimising warehouse costs
Reduction of the number of
suppliers
suppliers
2. To what extent do you use IT to carry out the procurement functions

successfully?
To a very small Extent:
To a small Extent:
To a Moderate Extent:
To great extent:
To very Great Extent:
242
3. Please rate the following reasons that has led to the implementation of E-
Procurement based on its importance in your organization?
Not
Not Most
Reasons Important Neutral Important
Important Important
at all
Central coordination and
aggregation of demand
Accountability
Openness
Transparency
Process efficiency
Costs/expenditure transparency
Reduction in purchasing price
(price discrimination)
Price Discovery
Process quality assurance
Integration of suppliers into the
procurement system
information
Decentralisation of operative
tasks
4. How frequently the following IT tools used for procurement in your

organisation?
Not
IT Tools Occasionally Frequently
Used
Materials management module (ERP-System)
Reporting & controlling tool
Electronic data interchange (EDI)
Tool for supplier evaluation
Catalogue management tool for indirect goods
Desktop purchasing of indirect goods
Contract management tool
Online invitations to tender
Online purchasing auctions
Web platform for scheduling and planning with suppliers
Web platform for product development with suppliers
Others
Please Specify:
243
5. What kinds of IT solutions used for operative order processing? ( Can tick more
than One)
a. SAP MM (materials management module):
b. SAP BBP/EBP (The SAP solutions Enterprise Buyer
Professional (EBP) and its preceding version (BBP))
c. Purchasing Card (VISA, Airplus, Amexco ...)
d. SAP SRM (Supplier Relationship Management )
e. Oracle, PeopleSoft, J.D. Edwards
f. Ariba
g. Products developed in-house
h. ERP
i. Other
Please Specify:
6. Which of the following IT tools preferred as fulfilling your industrial

procurement expectations?
Not
IT Tools Neutral Preferred
Preferred
Materials management module (ERP-System)
Desktop purchasing indirect goods
Contract management tool
Reporting and controlling tool
Web platform for scheduling/planning with suppliers
Electronic data interchange (EDI)
Tool for supplier evaluation
Catalogue management tool for indirect goods
Online purchasing auctions
Web platform for product development with suppliers
Online invitations to tender
Others
Please Specify:
7. Number of suppliers with whom business documents are exchanged by means of

EDI/WebEDI from last Six Months?
a. None:
b. 1–5:
c. 6 – 10:
d. 11 – 49:
e. 50 –99:
244
f. > 100:
8. Which of the electronic documents are exchanged with suppliers more often?
Once in a Once in a Once in 3 Once in 6 Can‟t
Documents
week month Month Month Say
Purchase order
Invoice
Order confirmation
Request for quote/bid
Despatch advice
Others
Please Specify
9. By which methods the electronic business documents are exchanged with

suppliers? (Can tick more than One)
a. Fully integrated solution (EDI) directly with the supplier:
b. Fully integrated solution (EDI) via B2B marketplace/transaction platform:
c. Web supplier portal via B2B marketplace/transaction platform (WebEDI):
d. Company run supplier portal (WebEDI):
e. Other method:
Please Specify
10. Which of the following difficulties faced in E-Procurement implementation?

Very Somewhat Not Not at all
Parameters Neutral
Difficult Difficult Difficult Difficult
High introduction costs for
new solutions
Suppliers slow to link up
with the procurement system
Lack of quality of master
data
Difficulty in judging
usefulness and potential of
new IT solutions
Lack of user-friendliness
and user-acceptance of
solutions
Solutions only address some
of our procurement
processes
Solutions do not address the
complexity of our processes
Solutions are not w ell
enough integrated (isolated
applications)
Lack of qualified staff who
245
can work with modern
procurement system
Consultant expertise is
lacking in IT projects for
procurement
Other
Please Specify
11. Who initiate and drives the development (up gradation) of IT for procurement?
(Can tick more than one)
a. Procurement department:
b. Process leadership:
c. Top management:
d. IT department:
e. Administrative leadership:
f. External consultants, software providers:
g. Business development department:
h. Others:
Please Specify
12. Please mention the importance of further up gradation of IT to support the

following strategic procurement process?
Not
Not Most
Parameters Important Neutral Important
Important Important
at all
Optimising the Analysis of
expenditure
Supplier assessment
Contract management
Development and review of
procurement strategy
Negotiation (invitations to
tender, auctions)
Supplier identification
Others
Please Specify:
246
13. Please mention the importance of further up gradation of IT to support the
following operative procurement process?
Not
Not Most
Process Important Neutral Important
Important Important
at all
Order processing of direct
goods
Automated invoice entry
processing
Order processing of indirect
goods
Order processing of services
Cooperative disposition /
planning with suppliers
Order processing of investment
goods
Electronic interchange of
business documents (EDI)
Cooperative product
development with suppliers
Others
Please Specify:
247
Appendix B: List of Publication
Details of Journal / Month &

Sr. Publication ISSN /
Title of Paper Conference Year of
No. Type ISBN No.
Proceeding Publication
Management Insight-
The Journal of
A study to identify
Incisive Analyzers, ISSN
further up-gradation of Journal Dec – 16
School of 0973936X
Information (Peer/ blind Volume
1 Management (Print)
Technology (IT) to reviewed XII
Science, Varanasi 24560936
support the bi-annual) Number 2
(Indexed with (online)
procurement process.
Crossref, Inflibnet,
PKP,MRI etc)
ISSN No.
E-Procurement Sankalpa: Journal of Journal
2231-1904 July-16
Implementation in Management and (Peer
2 (Impact Volume 6
selected Industrial Research (Indexed in reviewed
Factor : Issue 2
Units of Gujarat ProQuest) bi-annual)
2.813)
Identifying reasons for
adopting an E
Journal Apr-16
procurement in ISSN 0973-
3 Business Review (Peer- Volume 10
selected Industrial 9076
reviewed) Issue 1
units
of Gujarat
2349-784X
A Study to Identify International Journal Mar-16
(Online)
Factors That Affect E- of Science Volume 2
4 Journal (Impact
Procurement Technology and Issue 9
Factor :
Implementation Engineering.
3.905)
The extent to which IT
tools are used in e- Amity Management Dec-15
procurement in Review, A Journal of ISSN Volume 4
5 Journal
selected Industrial Amity Business 2230-7230 Number 2
units School, Jaipur.
of Gujarat
Identifying Barriers
and Enablers for
Changing face of
adoption of E- Conference 978-93-
6 India incorporate: Dec-11
Contracting: Some Proceeding 81583-12-8
innovative practices
Conclusion from
248

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“A Study of E-Procurement Practices in Selected

A Thesis submitted to Gujarat Technological University

for the Award of

Dr. Satendra Kumar

GUJARAT TECHNOLOGICAL UNIVERSITY

A Thesis submitted to Gujarat Technological University

for the Award of

Dr. Satendra Kumar

GUJARAT TECHNOLOGICAL UNIVERSITY

I declare that the thesis entitled “A Study of E-Procurement Practices in Selected

Signature of the Research Scholar:.................................. Date:.......................

Name of Research Scholar: Prakashkumar Hasmukhbhai Patel

I certify that the work incorporated in the thesis “A Study of E-Procurement

Signature of Supervisor: ……………………………… Date: ………………

Name of Supervisor: Dr. Satendra Kumar

It is certified that PhD Thesis titled “A Study of E-Procurement Practices in Selected

Signature of the Research Scholar: …………………………… Date: ….………

Name of Research Scholar: Prakashkumar Hasmukhbhai Patel

Signature of Supervisor: ……………………………… Date: ………………

Name of Supervisor: Dr. Satendra Kumar

a) GTU is permitted to archive, reproduce and distribute my thesis, in whole or in part,

b) GTU is permitted to authorize, sub-lease, sub-contract or procure any of the acts

e) I undertake to submit my thesis, through my University, to any Library and Archives.

Signature of the Research Scholar:

Name of Research Scholar: Prakashkumar Hasmukhbhai Patel

Date: Place: Vadodara

Name of Supervisor: Dr. Satendra Kumar

Date: Place: Vadodara

(Please tick any one of the following option)

Any further modifications in research work recommended by the panel after 3

(briefly specify the modifications suggested by the panel)

The performance of the candidate was unsatisfactory. We recommend that he/she

Keywords: Procurement, Information Technology (IT), E-Procurement, Enterprise

Prakashkumar Hasmukhbhai Patel

CHAPTER 1: Introduction, Definition of Terms and Structure of Thesis

CHAPTER 2 Review of Literature

CHAPTER 3 Research Methodologies

CHAPTER 4 Data Analysis and Major Findings

CHAPTER 5 Summary of Major Findings, Limitations and Scope for Future

List of Reference 225

List of Appendices 241

B2B Business to Business

1. FIGURE 1.1: The historic context of E-Procurement 5

1. TABLE 1.1: Micro, Small and Medium enterprises as defined in India 12

Agency2: Ministry of Government, Department etc

Information technology terms

E-Procurement Tool Characteristics

Buying / RTP Application (Buy Side E-Procurement)4 : An application hosted by the

Introduction, Definition of Terms and

Hence, the current study focuses on the E-Procurement practices in selected

1.1.1 Definition of Procurement

1.1.2 Major Function of Procurement

According to Croom, S. & Brandon-Jones, A (2004)17 E-Procurement refers to the use of

1.1.4 The History

(Source: UN Procurement Practitioner‟s Handbook, https://www.ungm.org/Areas/Public/pph/ch04s02.html )

FIGURE 1.1: The Historic Context of E-Procurement

1.1.5 Procurement Process / Steps

 Negotiation: In this phase, the price, availability, customization possibility,

 Logistic Management: It includes Supplier preparation, expediting, delivery and

 Additional Step - Tender Notification: Some companies use notification service

 Authorization: Each requirement is verified by approval agent. The approvers

 Purchase Order: Once the requisition is approved by the approver, a purchase

 Invoice: After the preparation of shipment, an invoice is created.