Procurement Process Simplification through E-Commerce in B2B Market of Iran

Abstract

The purpose of this paper is to build a model of factors that can be used in business process reengineering of procurement process by simplifying important variables through e-Commerce. According to the results, a model of factors named ”business data processing simplicity” has been developed. It has been conducted through Principal Component Analysis and the results present that those big industries which intend to succeed in electronic procurement process implementation, should try to start reengineering following subprocesses as the most important procurement factors: receiving delivery data announcement, possible supplier's requisition request, transport ordering, reclamation solving and bidding. Finally, we compared the results with data from previous study of Slovenia situation. The model of factors extracted from Iranian data in Asia-Middle East in comparison with Slovenia as European country was a little bit different; however, both covers process reengineering in two categories of ”Business Preparation Simplicity” and ”Business Operation Simplicity” including sub-processes.

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