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E-procurement platform implementation feasibility study and challenges
A practical approach in Iran
AuthorsMeysam Maleki
Mahmoud Karimi
Haniyeh Reyan
Virgilio Cruz-Machado
International Conference on Management Science and Engineering Management (2016)
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Agenda• E-Procurement• Global e-procurement platform providers
• Research hypotheses• Discussion of research hypotheses
• Findings• Challenges• Recommendation for a successful lunch of e-procurement
in Iran
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E-Procurement
The term e-procurement refers to the use of electronic communications to deal with business process between sellers and buyers. In other words, it can be defined as the B2B purchase and sale of supplies over the internet.
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E-Procurement Platform Providers
Source: Gartner (Magic Quadrant for Strategic Sourcing Application Suites, February, 2015)
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Research hypotheses
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)Distribution of Big Buyers
Distribution of 400 top Iranian companies among provincesAbout 97% of big buyers are located in 5 provinces (Iran has 31 province in total)
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Internet users per 100 people (From 2000 to 2014)
Source: World Bank Group (access date: Jan 11, 2016)
Iran is classified under the “upper middle income” category
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Population age(the age group from 15 to 64)
Source: World Bank Group (access date: Jan 11, 2016)
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Population distribution
Population 80 Million
Area 1,648,195 m2
GDP 419.643 billion $ (29th)
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Population pyramidWorld (2016): 7,432,663,000 Iran (2016): 80,043,000
Source: United Nations, Department of Economic and Social Affairs, Population Division. World Population Prospects: The 2015 Revision.
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Challenges & Key AdvantagesE-Procurement challenges E-Procurement key advantages
1. Implementation costs2. Deficient infrastructure3. Lack of interoperability4. Lack of business processes and
workflows5. Insufficient e-procurement
solutions6. Resistance of middle-managers
1. Competitive price2. Reduction of procurement cycle time3. Reduction of administrative expenses4. Transparency5. Reduction of operating costs6. Reduction of tied up capital7. Reduction of stock8. Increase accuracy of decisions9. Prevention of corruption attempts10.Expanded network of suppliers11. Access to trade history of buyers &
suppliers12.E-Attestation13.Early execution of tasks (i.e. delivery
of goods)
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I. Involvement of big buyers boosts the growth rate of the platform.
II. The UI & UX of the developed platform has to be adjusted to the usage and application taste of users.
III. Geographical segmentation approach in marketing increases the penetration rate.
Recommendation for a successful lunch of e-procurement in Iran
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)Business findings International practical contribution: Providers of e-procurement
platforms such as Zycus, SynerTrade, SAP Ariba, Vortal, etc has demand for their products to fulfill in this market.
National practical contribution: Providers of e-business solutions in the country such as SystemGroup, Rayvarz, TeamYar, etc has the national demand to develop their e-procurement solutions.
Managerial contribution: It is recommended to managers in the country to transform their traditional procurement systems into an e-procurement platform in order to benefit from e-procurement advantages such as: faster processes, less papers, transparency, cost reduction, and mitigation of financial corruption.
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THANK YOU!
Questions & Comments
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Meysam Maleki / UNIDEMI, Faculty of Science and Technology, Universidade Nova de Lisboa, Lisbon, Portugal ([email protected])
Mahmoud Karimi / Simorgh Investment Group, Tehran, Iran ([email protected])
Haniyeh Reyan / Arian Saeed Industrial Group Incorporation, Tehran, Iran ([email protected])
Virgilio Cruz-Machado / UNIDEMI, Faculty of Science and Technology, Universidade Nova de Lisboa, Lisbon, Portugal ([email protected])
Authors
