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Supply chain management meets customer demands by making efficient use of various resources such as inventory, distribution logistics and labor. E-procurement tools are good for making the best of supply chain. This paper discusses the integration of e-procurement tools and supply chain management and designs a multi level hierarchy of suppliers. The paper introduces Multi-level e-procurement system also known as MULEP. This system makes use of distributed mobile agents. These agents are developed using Java Agent Development Framework, or in other words JADE. The paper explains and discusses various problems faced by businesses for managing their supply chain. The basic problem faced by the business is that they have limited number of suppliers, which may or may not have the products needed by the business. Efficient supply chain management seeks to solve this problem. The geographic spread of the suppliers and different policies also leads to inefficiencies. It also reduces the flexibility of the supply chain. The paper then proceeds to study the contributions of MULEP. Traditional software designs are not capable of handling complex E-procurement systems. An efficient e-procurement system is designed to aid in the process of dynamic reconfiguration and code mobility. It further investigates the use of JADE and multiagent system for the designing of the supply chain management system.
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