Extent Of E-Procurement Adoption, Challenges And Its Impact On Supply Chain Performance: A Statistical Analysis

Abstract

The purpose of this research paper is to identify and understand the factors influencing extent of adoption of electronic procurement software and its impact on the performance of their supply chain postuptake of the software. The paper also tries to understand the challenges companies face with respect to the adoption of E-Procurement software solutions. A survey was floated to procurement leaders and with their responses analysis was done. Statistical tools such as Exploratory Factor Analysis (EFA), descriptive statistics were used. The twonew factors that got grouped were Downstream Procurement Activities and Upstream Procurement Activities where firms adopt E-Procurement software for the Procure-to-Pay and Source-to-Contract respectively. Reliability test was successfully employed to validate the data set. The descriptive statistics tells us that the Supply Chain Performance had an above average impact by E-Procurement Adoption with a considerable fluctuation. The challenges in adopting E-Procurement were determined to be of moderate extent with cost of these procurement software solutions being a major challenge for uptake. Currently not all firms are using procurement software as one size fit all solution for their procurement management and this paper helps us understand the landscape better by grouping the penetration of electronic procurement into two factors.