Digital Transformation of Procurement: A Case Study of E-Procurement System Implementation

Background: Indirect procurement in precision manufacturing remains under-digitised, generating high transaction volumes, limited spend visibility, and weak compliance enforcement. This study examines the selection and implementation of an e-Procurement platform for the indirect purchasing function of a high-precision optical components manufacturer. Methods: A qualitative action-research methodology, combining a narrative literature review, a weighted multi-criteria decision analysis (MCDA) across 16 candidate platforms, and participatory implementation across four data preparation workstreams. Results: The selected platform outperformed the competing finalist with a raw evaluation score of 82 vs. 81 (out of 90 scored criteria; 120 if the zero-weighted Sourcing criterion is included) and a weighted score of 23.3 vs. 22.9, with System Quality the decisive differentiator. Implementation outcomes include an 85.7% reduction in payment term codes (133 to 19), a 68.75% reduction in unit of measure codes (48 to 15), restructuring a 22-category taxonomy into 10-group and 56-subcategory, and a projected 75% reduction in purchase order lead time (a process-mapping estimate, pending post-go-live validation). 105 users were trained across six role categories before go-live. Conclusions: Data governance is a strategic prerequisite. The framework offers a replicable approach for precision manufacturing, with ERP integration, multi-level approval workflow design, and role-differentiated training as success factors.