IMPACT OF E-PROCUREMENT ON ORGANIZATION PERFORMANCE

TABLE OF CONTENT 

Title Page                                                                                            i

Certification                                                                                        ii

Dedication                                                                                          iii

Acknowledgement                                                                              iv

Table of content                                                                                  v-vi

Abstract                                                                                              vii

CHAPTER ONE: INTRODUCTION

• Background to the Study
• Statement of the Problem

1.3       Aim and Objectives

• Statement of Research Questions
• Justification for the Study
• Scope of the Study
• Research Limitations
• The Study Area

CHAPTER TWO: LITERATURE REVIEW

2.1       Concept of Infrastructure

2.2       Determinants of Property Values

2.3       Urban Infrastructure and Property Values

2.4       Open Market Value

2.5       Factors Affecting the Market Value of Property

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction

3.2       Types and Sources of Data

3.2.0   Types of Data

3.2.1   Source of Data

3.3       Data Collection Instrument(s)

3.4       Sampling Frame

3.5       Sample Size

3.6       Sampling Procedure or Technique(s)

3.7       Data Collection Procedure

3.8       Method of Data Analysis

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1       Data Analysis

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1       Conclusion

5.2       Recommendations

CHAPTER ONE

INTRODUCTION

• Background to the Study

The arrival of the Internet as a means of doing business has served as a medium for major changes in the operation and status of organizational procurement. It is evident that Information Technologies have totally transformed the way organizations and governments operate (Nelson et.al. 2001). They further assert that, majority of organizational expenses consists of money used to purchase various products and services. In order to decrease the total costs spent on purchasing process, internet technologies are used and E-Procurement has become popular to implement in the latest era by both governments and enterprises. Although the opportunities for improvement seem to flourish, both private and public sector organizations are still guarded as far as the adoption of electronic technologies is concerned (Zheng, et al. 2004).

Some of the electronic technologies that have revolutionized business include the E-procurement. There has been growing interest in the adoption of e-procurement by private and public sector organizations in the last decade. However, this interest has been with many reservations since e-procurement is a recent phenomenon. (Dai & Kauffman, 2001; Koorn, Smith & Mueller, 2001), there is no doubt that the use of the Internet in e-Procurement provides several advantages over earlier inter-organizational tools. For example, Electronic Data Interchange has been providing automated purchasing transactions between buyers and their suppliers since it was launched in the 1960s. Enterprise Resource Planning (ERP) followed in the 1970s, and then came the commercial use of the Internet in 1980s. This was followed by the universal application of the World Wide Web in the 1990s (Office of Government Commerce, 2002).

According to the Epiq Technologies (2010) report, adoption of E-procurement technology in an organization enables a firm to organize its interactions with its most crucial suppliers, a set of built-in monitoring tools to help control cost an open line of communication with potential suppliers during a business process. The system allows managers to confirm pricing and leverage previous agreements to assure each new price quote is more competitive than the last. E-Procurement helps with the decision-making process by keeping relevant information neatly organized and time-stamped. Most are template-driven which makes all transactions standardized and traceable.

According to CIPS Australia (2005) report, efficiency and effectiveness represent different competencies different competencies and capabilities for procurement organization. Efficiency reflects that the organization is doing things or activities right, whereas efficiency whereas effectiveness relates to the organization doing the right thing. There is a trade-off between efficiency and effectiveness as a highly efficient organization may spend less than peers (particularly when compared to highly effective organizations), however, quality and value may suffer. Organizations focused on efficiency tend to make decisions based on cost and investment pay back likelihood; whereas effectiveness focused organizations make decisions based on quality and value rather than costs and productivity.

The last decade has seen the importance of public procurement grow not only in Nigeria but across Africa owing to the fact that the share of public procurement in the GDP of Sub-Saharan African countries ranges between 8-15%. Likewise, improvements in procurement legislation and its implementation have on average resulted in savings of 30% (Shalle & Irayo, 2013). Panetto & Boudjilida (2013) assert that, efficient enforcement of public procurement legislation is a considerably more important and difficult task than the formal adoption of public procurement guidelines. It thus is apparent that many countries have simply copied down directives and thereby formally fulfilled requirements while not possessing the needed capacity to implement them effectively, which has become quite evident problem in the recent past. Till early 2000, Kenya like many of her counterparts in the developing world was marred by high inefficiency in spending of taxpayers‟ money, particularly in the area of public procurement. The number of enterprises which had the privilege of doing business with the state was highly limited and there was no true competition among them. The procedure of public procurement was completely non-transparent and unregulated and there was no institutional framework whatsoever (Susan & Hardy, 2005).

In Africa, the current phase in the development of public procurement has seen the establishment of special public procurement bodies, whose task is to implement the new regulations. These bodies aim not just to bring domestic legislation, but to play a key role in the efficient implementation of the regulations. These bodies have also been given increasing responsibility for monitoring of public procurement procedures. In this phase the regulatory frameworks have completed by the adoption of all necessary secondary legislation, intensive training programs have been organized and needed manuals and instructions have been published aimed to inform widest range of procuring entities and potential bidders on how to implement the law provisions properly (Nicola, Missikoff & Fabrizio, 2011).

1.2       Statement of the Problem

The procurement function in Nigeria has been characterized by massive scandals and indignity which have been attributed to poor handling of procurement information thus leading to excessive corruption (Thuo, 2009). There is need to have a robust automated procurement system which is interlinked and this will lead to enhanced competitiveness and lowered costs (Ouko et al., 2009). The county government is faced with a challenge when it comes to the issue of tendering. The significant number of complaints that the county government is blamed for in the procurement process varies. Currently, the performance of the county in delivering services to the stakeholders has reduced. The lack of transparency in the procurement process has made it impossible for the county to conduct proper procedure in giving out contracts to the suppliers. The capacity of the county government to achieve the best supply deals in terms of supplies provided by the suppliers is not giving the exact results and the process continues to deprive other suppliers a better chance to access the procurement services and contracts due to lack of viable information about the procurement process.

The lack of an E-procurement system in the county level has made it impossible for the county to achieve the best deal of the supply contract and thus little is done in terms of giving the right information. Payments are delayed when it comes to service delivery and thus the county is slow in delivering as a result of timelessness in supply. Furthermore, the county has not been able to effectively pay the suppliers due to late invoicing and delayed approvals for supply of goods and services to the county government. It is due to these backgrounds that this study has been undertaken to assess the effects of e-procurement on supply chain management performance in Nigeria

1.3       Research Objective

The general objective of the study is to determine the Impact of e-Procurement on Supply Chain Management at International Breweries Ilesa, Osun State. The specific objectives are;

1. To establish the significant relationship between E-Procurement and Supply Chain Management
2. To determines the effects of e-tendering on supply chain management in International Breweries Ilesha.
3. To examine the effect e-invoicing on supply chain management in International Breweries Ilesha.
4. To examine the effect of e-payment on supply chain management in International Breweries Ilesha.

1.4       Research Questions

1. Are there any significant relationship between E-Procurement and Supply Chain Management?
2. What is the effect of e-tendering on supply chain management in the organization?
3. What is the effect of e-invoicing on supply chain management in the organization?
4. What is the effect of e-payment on supply chain management in organization?

• Research Hypothesis

The following hypotheses were formulated for the study;

Ho:      There is no Significant Relationship between E-procurement and Supply Chain Management

Hi:       There is Significant Relationship between E-procurement and Supply Chain Management

• Significance of the Study

The understanding of the Supply Chain practices adopted by manufacturing organization would help the management in policy making in the organization. They would help to design targeted policies and programs that would actively stimulate the growth and sustainability of the organization as well as helping those policy makers to support, encourage, and promote the establishment of appropriate policies to guide the firms.

The findings from this study are beneficial to the firms as far as the adoption of e-procurement systems is concerned and also in coping with problems of implementation and institutionalization of the e-procurement systems so as to guides firms to formulate effective procurement policies to gain competitive edge in the market. The study findings serves as a benchmark to other organizations intending to adopt e-procurement as it enables them to better understand the role of e-procurement in organizational supply chain performance.

The study findings would benefit the Management and the staff who will gain insight into how their organization can effectively manage E-Procurement to improve the management of the Supply Chain. This study will offer an understanding on the importance of adopting efficient procurement practices in order to utilize the resources effectively.

This study will also create a monograph which could be replicated in other sectors of the economy. Most importantly, this research will contribute to the literature on the e-

Procurement practices in firms especially in developing countries like Nigeria. It is hoped that the findings would be valuable to the academicians, who may find useful research gaps that may stimulate interest in further research in future.

The findings of the study may also serve as a benchmark to other organizations who intend to adopt E-Procurement. It would enable them to understand the effects of E- Procurement on Supply Chain Management.

1.7       Scope of the Study

The scope of this study covered the Impact of E-procurement on Supply Chain Management with special reference to International Breweries Ilesa, Osun State.

1.8       Limitation of the Study

In the course of this research work, the researcher was faced with some constraints which placed a limit to the ability and performance of the researcher. The researcher encountered the following constraints among others.

1. Financial Constraint: The researcher needed a lot of money to travel to collect the necessary data from the firm. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.
2. Lack of Co-Operation: The unco-operative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.
3. Time Pressure: Time allowed was not enough for through completion of the research, in consideration of the fact we were also facing other academic studies during the semester.

• Historical Background of the Study

International Breweries Plc was incorporated in December, 1971 by its founder and first chairman, Dr. Lawrence Omole in collaboration with some of his business associates, under the name International Breweries limited.

With adequate backup having been provide by the initial corporate and private investors, the company commenced production in December, 1978 with an installed capacity of 200,000 hectoliters of trophy lager beer per annum. Following the increasing demand for its product, in December, 1982, the company embarked upon an expansion programme to increase brewing capacity to 500,000 hectoliters annually.  In 1978, and taken over in 2011 by the management of SABMILLER world’s second largest brewer and the biggest in Africa, has remain a remarkable choice of beer consumer, having its stronghold in the South Western Nigeria.

On 5 October, 2012. Trophy lager beer, which was originally lunched by International Breweries Plc. Ilesha, Osun State in 1978.

Head Office: Omi-Asoro, P.M.B. 5104, Ilesha, Osun State

Nature of Business: Brewing of Bear and non-alcoholic malt drinks

Date listed on exchange on 6th April, 1995

Directors: Mr. Chris Steinwelve (Chairman), Otunba Michael Oladipo Daramola (MD/C.E.O).

International Beweries Plc. Was incorporated as a private limited liability company on 22 December, 1971 and become a public limited liability company on 26 April 1994. The principal activities of the company is the brewing of beer and non-alcoholic malt drinks.

• Definition of term

1. E-procurement: It is a rapid efficient method of finding and connecting new sources, being a lean channel for communication.

2. E-Auctions: E-auction is the process of bidding products over the Internet and the auction is most often traded in real time.
3. E-tendering: E-tendering involves the process of sending requests for invoices (RFI), request for purchases (RFP) etc. to suppliers and receiving the responses from the suppliers using web-based technology.
4. E-sourcing: E-sourcing refers to the process of identifying or finding new possible suppliers for a specific category of purchasing requirements using Internet technology.
5. E-informing: E-informing is a form of electronic procurement that is not directly associated with the step in a basic purchasing cycle like contracting or ordering.
6. E-catalogue: E-catalogue is an innovative digital medium in which information about products and services may be placed within an executable file (.exe) that can be distributed by email or made downloadable from a website.
7. E-MRO: E-MRO focuses on the process of creating and approving purchasing requisitions, placing orders and receiving goods or services ordered using system software based on Internet technology.
8. Web-based ERP system: Web-based ERP system involves the procurement of direct goods/product related items (goods that are directly used to produce finished products) and any related transactions such as purchase order, invoices, payments and other necessary documentation via online.
9. Web-based EDI systems: Web-based EDI systems are a cost-effective way to automate the exchange of structured documents on business arrangements between trading partners as all transactions are done electronically.