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.