Abstract: Taking SINOPEC′s procurement projects as examples，this paper demonstrates the advantages of on-line procurement auction over traditional on-line procurement.On-line procurement auction promotes efficiency，reduces costs and ensures objectiveness and justice in procurement projects.The advantages also lie in the fact that e-procurement auction can increase capital liquidity and reduce inventory cost apart from the convenience of archive management.The authors also suggest some solutions to possible problems in e-procurement auction，hoping to be of help with the application of modern technology in promoting procurement efficiency.

Key words: e-commerce, procurement auction, reduce cost, material procurement, material management, economic globalization