Hadi Balouei Jamkhaneh

A procurement system is a crucial part of supply chain management in firms. International companies are looking forward to how much it is possible to save through implementing the strategies of e-procurement fully. In this paper, we study e-procurement and its application along with its added value for the firms. In addition, we discuss its drivers and barriers as well as demonstrating a supplier selection framework. We also adopt Critical Success Factors (CSF) for e-procurement. Findings indicate that e-procurement will decrease lead time, providing agility for the supply chain management. Added values are: strategic, operational and opportunity which varies depending on to what extent each organization emphasizes it and implements it. E-procurement systems implementation is hard due to its barriers by various technologies, varied organizational culture and changing users’ interacting skills with Information systems/technologies. E-procurement is a complex system in firms and firms' staff are the main contributors of the technology. We need to write down the hierarchy tree and have a category titled "electronic transaction" that can help for quantitative decision making for the supplier selection in the e-procurement process. We found that all of the CSFs are not crucial in all of the firms and indicators for performance should be categorized into firms' structures, managerial criteria, and key activities. These three indicators are strongly interrelated.