Readiness, Benefits and Barriers of E-Procurement Implementation in the Maintenance Repair and Overhaul Industries in India

This is quite evident that technological advancements are bringing automation almost in every activity specially core activities of the business in cost effective ways. The advent of internet technology provides the platform to perform procurement activities between business to business using electronic medium which is known as E-procurement. E-procurement is a key to optimise supply chain performance through cost reduction and process efficiency. Maintenance, Repair and Overhaul (MRO) sector of the aviation industry has not kept pace with the ever growing sector in India. Though this industry is expected to grow about $1.6 billion (spending each year) in the next 10 years from the current market size of about $700-800 million, it still remains largely unexplored. E-procurement focuses on acquisition of resources, especially MRO items, and increasingly materials and components. The purpose of this paper is to understand the facts that influence the implementation of eprocurement for MRO in an aviation industry. A cross-sectional survey is used as the methodology for the data collection. Conceptual model developed by the previous researchers was used to explain the readiness, benefits and barriers of e-procurement implementation in the MRO environment in India.