In todays’ competitive and dynamic environment, survival and upward growth has become one of the most challenging task of organization. Meeting such challenges, various organization realized the importance of automating the business processes for effective and efficient integration leads to a better performance in results. E-procurement is not only just a system for making purchase online. It represents the concept of automation of purchasing process using electronic system that incorporate smart analytical tools like big data and data mining solutions. E-procurement is the way of using internet and web based system to make easier, faster and less expenses purchase and sale of service. A properly implemented systemconnect the suppliers with the organizations while managing all interactions between them.The pharmaceutical companies experienced changes in their international and local competitions, customer base, market demand and adoption of rapidly changing technologies.  These changes shifted the pharmaceutical supply chain from the operational functions to a value added activities and long term sustainability.  This realization led to the espousal of electronic procurement in pharmaceutical companies. This paper aims at examine the benefits and barriers of espousal and the critical success factors for the successful application of e-procurement in the procurement of selected pharmaceutical companies located in Andhra Pradesh.

Key words: E-Procurement, Manufacturing Pharmaceutical,Supply chain management