E-procurement: How does it enhance strategic performance?

International Research Journal of Management and Social Sciences, 2023

The current study investigated the impact of top management support (TMS), technological factors and information quality (IQ) on implementation of e-Procurement leading towards company performance (CP) in the textile sector of Pakistan. 202 SC professionals and executives have participated in the data collection based on nonprobability purposive sampling technique using a five-point Likert scale questionnaire. Moreover, PLS-SEM technique has been used for data analysis. The findings showed that the implementation of eProcurement is positively impacted by top management support, technological factors, and information quality. Additionally, it has been discovered that eProcurement implementation of eProcurement has a favorable impact on business performance. Companies should provide training for workers involved in e-Procurement in order to raise the quality of information used to evaluate and improve business performance. E-Procurement adoption can be affected by a number of factors, one of which is the skills of the staff.

Supply Chain Management: An …, 2005

Purpose -Electronic support of internal supply chains for direct or production goods has been a major element during the implementation of enterprise resource planning (ERP) systems that has taken place since the late 1980s. However, supply chains to indirect material suppliers were not usually included due to low transaction volumes, low product values and low strategic importance of these goods. Dedicated information systems for streamlining indirect goods supply chains have emerged since the late 1990s and subsequently have faced a broad diffusion in practice. The concept of these e-procurement solutions has also been described broadly in the literature. However, studies on how companies use these e-procurement solutions and what factors are critical to their implementation are only emerging. This research aims to explore the introduction of e-procurement systems and their contribution to the management of indirect goods supply chain. Design/methodology/approach -Chooses a two-part qualitative approach. First, summarizes the results of a benchmarking study that was conducted by a consortium of 12 multinational companies. During the benchmarking process 120 questionnaires were distributed, ten phone-based interviews were conducted, and finally five successful practice companies were selected and analyzed in detail. Second, draws together the success factors identified in the benchmarking study and maps them against the successful practice companies. Findings -Although e-procurement has substantially streamlined the procurement and coordination processes for indirect goods, many companies operate multiple e-procurement solutions. For integrated procurement solutions, the paper recognizes the need of an overall procurement strategy and organization, an alignment of various e-procurement solutions along the procurement process and the need for integrated system architectures. Companies also have to realize that a no standardized e-procurement solutions exists and that important success factors are "non-technical" in nature. Originality/value -This paper presents a first step towards a systematic analysis of factors that may guide companies in the implementation of eprocurement solutions. Besides providing a direct contribution to the project work in companies it may stimulate further research in e-procurement success factors.

Artificial Intelligence Systems and the Internet of Things in the Digital Era, 2021

The advent of the internet has revolutionized the procurement's sourcing processes in firms among multiple sectors and industries. It has stimulated cost-effective ways besides various innovative applications that enterprises could leverage from it. In this paper, we are going to spot the light on the main factors which are impacting the supply chain performance. These factors are Eprocurement, Supplier relationship and supplier integration. The literature review will discuss the benefit of automating procurement processes and how it will add value to the organization, followed by the need for strengthening the relationship between the organization and their key suppliers, especially for complex and bottleneck products. Finally, supplier integration to which extent it will assist the organization to be adaptive to the unforeseen situation in the external environment. This paper will examine the impact of the E-procurement on the performance of the supply chain and discusses the main benefits and challenges that the organization may face during its implementation. Moreover, to demonstrate that supplier relationship contributes to influencing supply chain performance in a positive way, furthermore, to analyze the perception of business users.

Hasanuddin Journal of Business Strategy, 2020

Modern era as now, human life cannot be separated from dependence on a technology called the internet. The internet has mastered almost all aspects of human activities, ranging from sending letters, looking for information, and other activities. Especially in the field of business, this technology is very influential, as well as the procurement of goods and services has been done a lot online or commonly known as E-Procurement. This study aims to and analyzes the effect of E-Procurement technology on procurement performance, the effect of E-Procurement technology on procurement practices, and the effect of procurement practices on procurement performance. To implement these objectives the data collection techniques were used through questionnaires. The analysis technique used is path analysis and data evaluated in the first place using the classical assumption test (normality test, multicollinearity test, heteroscedasticity test, and linearity test). The results found that the use o...

International Journal of Services and Operations Management, 2007

Advanced technology has paved the path for improving overall performance in supply chain management, and has turned the latter into a competitive advantage for many companies. This study explores electronic procurement and its relationship with operational performance. Data was collected by means of questionnaires distributed to active vendors and end users in Company X. The results reveal that operational performance differs with the type of procurement: e-procurement vendors have better operational performance compared to those practicing traditional purchasing. However, the relationship between type of procurement and operational performance is moderated by business volume, vendor region, extent of trust and cooperation, whereas product type did not hold a significant moderator effect. Accordingly, managers should adopt e-procurement in their respective organisations to improve operational performance in supply chain management.

American Based Research Journal, 2019

The purpose of this study was to establish the role of e-procurement on the performance of Safaricom PLC. The target population Safaricom PLC and consisted of 79 respondents comprising finance officers, procurement officers, logistics officers, quality managers, ICT officers, and operations officers. A census of 79 respondents was carried out. Questionnaires were used to obtain data from the field. Quantitative data were analyzed using descriptive statistics which include mean, standard deviations, frequencies, and percentages and presented in terms of tables, graphs, and charts. Regression analysis was used to test the extent to which the variables under study relate to each other. The findings established that data transmission and system management had a positive and significant influence on the performance of Safaricom PLC. It led to enhanced E-ordering, E-ward and E-ordering, better channel relationship, decision making, and information sharing. It also showed increased better channel relationship, decision making, and information sharing. The study recommends that Safaricom PLC should conduct joint improvement activities, share information intensively but selectively, develop supplier technical capabilities and accept supplier complaints as an opportunity to improve on their procurement processes. The study also recommends that future research will need to be carried in other telecommunication industries in order to show if the link between e-procurement components and organizational performance can be generalized. Procurement is critical in the provision of services and it anchors policies touching on the environment and the society as a whole. Consequently, the procurement processes are closely monitored by the parties involved for the purpose of ensuring that there is transparency in the process and the protection of the welfare of the state (Odhiambo and Theuri, 2015). As such, the procurement department plays a pivotal role in any organization. On the other hand, Thai (2014) argues that procurement is exposed to challenges such as in the legal framework, the structure of the market and the political environment that procurers face, thus achieving efficacy in procurement is an ambitious task. Global acceptance of the internet as a source of information and as a way of doing business has been a conduit of significant changes at the operational level of an organization. There is enough evidence to prove that IT tools have transformed the operations of both corporates and the government (Nelson et al, 2001). It is further opined that most of the firms capitalize on e-procurement to reduce procurement costs. Despite this, e-procurement adoption is limited since these enterprises and the government agencies are still not receptive on adopting e-procurement (Zheng et al., 2004). Going by a report by Epiq Technologies (2010), adoption of e-procurement facilitates real-time communication etween the firm and its suppliers, it also enables monitoring and control of the suppliers as well as cost control. Further, E-Procurement aids in making decisions by providing information about all procurement transactions in a timely manner. In the contemporary world, e-procurement has revolutionized how business is conducted. As such, it has attracted attention to both public and private entities in an equal measure over the last decade but reservedly. It is crystal clear that e-procurement has overriding advantages as compared to traditional tools of procurement. Examples of the automated tools of procurement include electronic Data Interchange which facilitates paperless communication between procuring entities and the suppliers, Enterprise Resource Planning that came about in 1970 was a precursor of both the world wide web and the internet.

2007

E-procurement has been identified as an area of B2B e-commerce where IS-enabled transformations of business processes and practices are likely to yield significant benefits. In this paper we present the findings from a recent survey of e-procurement in Australia. The survey is designed around the OECD model of e-business adoption and provides a picture of the readiness, intensity and impact of eprocurement in Australian organisations. The survey findings indicate that e-procurement has transitioned from a largely operational concern and now takes a more strategic position in organisations. E-procurement implementations have increased in both reach and scope, with more organisations implementing systems that span the whole enterprise, encompassing a greater range of procurement functions and activities. However, whilst progress has been made a number of challenges still remain. None of the respondents who had implemented e-procurement reported major or significant benefits. Moderate benefits were realised with respect to improved supply chain integration, reduced employee overhead and improved supplier sourcing. In this paper we present the findings of the 2006 Australian National e-Procurement Survey. We discuss the findings and their relation to previous surveys and studies and outline implications for future research on IS-enabled innovations in procurement.

The International Journal of Business & Management, 2019

Introduction E-Procurement is the use of the internet or a company's intranet to procure goods and services used in the conduct of business. E-Procurement tools include online supplier catalogues, electronic invoicing, emails, and tender evaluation software amongst others. Automation leads to efficiency and accuracy in processing transactions: Online supplier catalogue enables buyers to order online and suppliers are assured of continuous business as long as a good price is maintained and timely payments are done, supply chain is hastened and needs of customers are met quickly leading to customer satisfaction, retention and improved profit. An E-Procurement system can streamline all aspects of the purchasing process while applying tighter controls over spending and product preferences. E-Procurement manages the flow of documents by automating the document generation process and electronically passing on purchase orders to suppliers. Use of E-Procurement helps build outstanding relationships and hence influence the performance of the procurement function in public institutions. Technology helps to make communication much easier and effective and its adoption and use has an effect on the business process. An organization benefits from good buyer-supplier relationship through incorporating information technology in its procurement activities (Narasimhan& Das, 2001);this increases efficiency of service and work done and also improves speed which ensures time economization as there would be removal and handling of paperwork and also the time taken between identifying a need, issuing purchase orders and finally delivery of the product or service would be reduced. E-Procurement ensures transparency by buyers and suppliers and also with the organization as there would be increased communication between the partners. Nagurney (2010) also noted that E-Procurement is an effective means of ensuring accuracy hence lessening in errors which minimizes costs. For a procurement organization to operate both efficiently and effectively in such a complex environment useful structures need to be created and suitable instruments put to use. Use of

This paper presents the results of a literature survey developed to support a proposed model of the Critical Success Factors (CSFs) likely to impact the success of e-Procurement initiatives in the public sector. It identifies a number of relevant variables for each CSF and presents a model for future research. It also analyses the relative importance of different CSFs and observes that organization and management factors are the most important category for success of e-Procurement initiatives. If e-Procurement initiatives in the public sector are to assist the development of e-Procurement across the information economy, there should be wider discussion and agreement on what constitutes the relevant CSFs and how the achievement of success can be assessed. Procurement literature, primarily from the last five years, shows a lack of core constructs around CSFs. The reason for this might be that implementation of e-Procurement initiatives in the public sector is still in the early stages. Tonkin argues there was little history of extensive use of e-Procurement in the public sector and, therefore, the academic literature covering early public sector adoption of e-Procurement is limited. This paper will assess the CSFs that are likely to influence the success of e-Procurement initiatives in the public sector. The main overall objectives of the paper are to gain an exploratory understanding of e-Procurement issues in the public sector; to develop a conceptual framework that aids in identification of critical success factors for adopting and implementing e-Procurement in the public sector; and to stimulate debate about the e-Procurement CSFs and the associated measures for success.