Achieving E-procurement Benefits in an Aviation MRO Environment

Continuous technological innovations are forcing businesses to bring automation into its core activities. E-procurement is one of such technological advancement, receives much attention these days as it is a key to optimise supply chain performance, through cost reduction and improved process efficiency. The purpose of this paper is to compare substantial impact of e-procurement and traditional procurement process for MRO (maintenance, repair and overhaul) in an aviation industry through a qualitative case study approach where stages before and after implementation of e-procurement have been analysed to assess the impact on supply chain performance. The study shows that the e-procurement has advantages over the traditional procurement through bringing simplification and transparency throughout the process, reducing turnaround time and also long term relationship with the suppliers along with subsequent cost reduction across the value chain.