Organizations constantly procure goods and services for their operation. There are various kinds of procurement, like traditional method and e-procurement. The traditional method of procurement requires significant investment in terms of resources, money, time and effort, and has several process limitations. On the other hand, e-procurement has an advantage over the traditional method in several aspects. This resulted in the transition from the traditional method to e-procurement in some, if not all organizations. Researchers and practitioners are always in the process of evaluating these systems, so as to ensure their effectiveness. This paper attempts to evaluate the effectiveness of e-procurement system with a case analysis of Mahanadi Coal Fields, Ltd., where e-procurement system has recently been installed using the Analytical Hierarchy method.

In today’s dynamic global competitive business environment, technology-based service is no longer an afterthought, rather it is a must for public and private organizations. It has become necessary for companies to provide their customers with cost-effective total solution and better customer satisfaction with innovative ideas and methods. Especially with the emergence of Information and Communication Technology (ICT), companies are forced to shift their operation from the traditional style to e-business, e-procurement and e-supply chain philosophy in order to sustain themselves (Lee et al., 2001). e-Procurement has an added advantage compared to the traditional system of working. This new method requires significant investment, and hence there is a need to justify these investments. The fact that organizations have been substaintially benefited from these initiatives is difficult to prove as the benefits are more of qualitative than quantitative in nature.

Supply Chain Management Journal, Measuring the Effectiveness of e-Procurement, A Case Discussion on MCL, Literature Survey, Information Technology, Transparency International, Analytic Hierarchy Process.