490 Int. J. Services Technology and Management, Vol. 7, Nos. 5/6, 2006 Copyright © 2006 Inderscience Enterprises Ltd. E-procurement: systems and implementation B.S. Sahay* Institute of Management Technology Raj Nagar, Ghaziabad 201 001, India E-mail: bssahay@imt.ac.in *Corresponding author Ramneesh Mohan Center for Global Supply Chain Management Institue of Management Technology Raj Nagar, Ghaziabad 201 001, India Fax: +91–120–2965020 E-mail: ramneeshm@yahoo.com Amit Sachan Management Development Institute Mehaurali Road, Gurgaon - 122 001, India Fax: +91–120–2965020 E-mail: fpm02_amit_s@mdi.ac.in Abstract: The competition in today’s global marketplace is driving companies to reshape their supply chain, reduce overall costs and eliminate inefficiencies. E-procurement is gaining in popularity because it reduces transaction costs for buyers and, hence, can have a significant impact on the profitability of organisations. This paper presents a case study on an e-procurement implementation exercise carried out in an Herbal Medicine Company. The aim of the research was to find out what reasons drove companies towards the use of the e-procurement systems and what conditions are necessary for the success of electronic reverse auctions. The paper concludes by identifying six conditions necessary for the success of electronic reverse auction. Keywords: procurement; e-procurement; electronic reverse auction; supply chain. Reference to this paper should be made as follows: Sahay, B.S., Mohan, R. and Sachan, A. (2006) ‘E-procurement: systems and implementation’, Int. J. Services Technology and Management, Vol. 7, Nos. 5/6, pp.490–511. Biographical notes: Professor B.S. Sahay is Director of the Institute of Management Technology (IMT) Ghaziabad, India. Prior to joining IMT, he was Dean (Research) and Professor of Operations Management at Management Development Institute (MDI), Gurgaon, India. He was also Adjunct Professor at Queensland University of Technology, Australia. His teaching, research and consulting interests include supply chain management, operations management, productivity management and business modelling. He has served as Guest Editor of International Journal of Physical Distribution and Logistics