A Dissertation Submitted to Dar es Salaam Campus College in the Partial Fulfillment of the Requirement for the Award of Master of Science in Procurement and Supply Chain Management Degree of Mzumbe University, Tanzania.The main objective of this paper was to identify the reasons for why many business organizations do not fully apply e-procurement as means of sourcing. Specifically the study intended to identify factors affecting the implementation of e-procurement in business entities in Tanzania. To examine the extent to which those factors affect the implementation of e-procurement; examine the benefits which the organization may acquire by applying e-procurement in sourcing, and to identify the risks and advantages of applying e-procurement in sourcing. The researcher applied case study research design where by 30 respondents were picked from production, procurement and finance. The researcher collected both primary and secondary data where primarily, questionnaires, interview and observation were applied and secondarily documentary and internet were fully sourced. Data were then analyzed quantitatively and qualitatively using table and percentage in evaluating the results. Findings from this study revealed that, the implementation of e-procurement in business entities in Tanzania is faced with obstacles like payment risks, lack of training, transactional trust, delivery risks, poor infrastructures, lack of reliable and sufficient power supply, quality issues, lack of clear IT policies and many others. Successful implementation of e-procurement have great advantages and to the community as it assures low costs of production, easier tracking of purchases and improved technology. In order to overcome the challenges facing e-procurement in Tanzania the researcher recommends that, CCK should develop a clear policy that will govern the implementation of a complete cycle of e-procurement. The government should ensure that, the issue of internet in the country is managed and controlled. Also CCK should provide training to its people as the world is changing day to day. Furthermore researcher recommends that, the government should invest in other sources like solar power, wind, gas and others so as to alleviate power problem in our country.