Title: E-procurement as a key success factor in cooperative purchasing

Authors: Jani Makinen, Anni-Kaisa Kahkonen, Katrina Lintukangas

Addresses: School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland. ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI-53851 Lappeenranta, Finland

Abstract: This study discusses cooperative purchasing and, moreover, focuses on the role of e-procurement systems as a success factor in cooperative purchasing. Because of the changes in the dynamic business environment, the character of cooperative purchasing has changed. It has become possible for companies to exploit e-procurement systems to leverage cost efficiency and wider product portfolios and to obtain other benefits as well. This has made cooperative purchasing more competitive. The case study analyses e-procurement and cooperative purchasing in the Finnish banking sector and presents how the exploitation of e-procurement systems has contributed to cooperative purchasing in the case context. The results of the study indicate that integrated and automated e-procurement systems have a significant role in achieving the targets and benefits of cooperative purchasing.

Keywords: e-procurement; electronic procurement; cooperative purchasing; centralisation; horizontal collaboration; success factors; cost efficiency; product portfolios; competitiveness; Finland; banks; banking; integration; automation; targets; benefits; procurement management.

DOI: 10.1504/IJPM.2011.037385

International Journal of Procurement Management, 2011 Vol.4 No.1, pp.56 - 71

Published online: 31 Jan 2015 *

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