E procurement platform implementation feasibility study and challenges
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This document presents a feasibility study on the implementation of an e-procurement platform in Iran, outlining key challenges such as implementation costs and infrastructure deficiencies, alongside the advantages like reduced procurement cycle times and increased transparency. It highlights the concentration of large buyers in specific provinces and emphasizes the necessity for local e-procurement solution development to meet national demand. Recommendations include transforming traditional procurement processes to leverage e-procurement benefits effectively.
E procurement platform implementation feasibility study and challenges
- 1. E-procurement platform implementation feasibility study and challenges A practical approach in Iran Authors Meysam Maleki Mahmoud Karimi Haniyeh Reyan Virgilio Cruz-Machado International Conference on Management Science and Engineering Management (2016)
- 2. InternationalConferenceonManagementScienceandEngineeringManagement(2016) 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
- 3. InternationalConferenceonManagementScienceandEngineeringManagement(2016) 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.
- 4. InternationalConferenceonManagementScienceandEngineeringManagement(2016) E-Procurement Platform Providers Source: Gartner (Magic Quadrant for Strategic Sourcing Application Suites, February, 2015)
- 6. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Distribution of Big Buyers Distribution of 400 top Iranian companies among provinces About 97% of big buyers are located in 5 provinces (Iran has 31 province in total)
- 7. InternationalConferenceonManagementScienceandEngineeringManagement(2016) 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
- 8. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Population age (the age group from 15 to 64) Source: World Bank Group (access date: Jan 11, 2016)
- 9. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Population distribution Population 80 Million Area 1,648,195 m2 GDP 419.643 billion $ (29th)
- 10. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Population pyramid World (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.
- 11. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Challenges & Key Advantages E-Procurement challenges E-Procurement key advantages 1. Implementation costs 2. Deficient infrastructure 3. Lack of interoperability 4. Lack of business processes and workflows 5. Insufficient e-procurement solutions 6. Resistance of middle-managers 1. Competitive price 2. Reduction of procurement cycle time 3. Reduction of administrative expenses 4. Transparency 5. Reduction of operating costs 6. Reduction of tied up capital 7. Reduction of stock 8. Increase accuracy of decisions 9. Prevention of corruption attempts 10.Expanded network of suppliers 11.Access to trade history of buyers & suppliers 12.E-Attestation 13.Early execution of tasks (i.e. delivery of goods)
- 12. InternationalConferenceonManagementScienceandEngineeringManagement(2016) 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
- 13. InternationalConferenceonManagementScienceandEngineeringManagement(2016) 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.
- 14. InternationalConferenceonManagementScienceandEngineeringManagement(2016) THANK YOU! Questions & Comments
- 15. InternationalConferenceonManagementScienceandEngineeringManagement(2016) Meysam Maleki / UNIDEMI, Faculty of Science and Technology, Universidade Nova de Lisboa, Lisbon, Portugal (Maleki@fct.unl.pt) Mahmoud Karimi / Simorgh Investment Group, Tehran, Iran (M.Karimi@simvest.ir) Haniyeh Reyan / Arian Saeed Industrial Group Incorporation, Tehran, Iran (H.Reian@yahoo.com) Virgilio Cruz-Machado / UNIDEMI, Faculty of Science and Technology, Universidade Nova de Lisboa, Lisbon, Portugal (VCM@fct.unl.pt) Authors