THE ROLE OF ELECTRONIC PROCUREMENT SYSTEMS ON SUPPLY CHAIN EFFICIENCY

Abstract

ABSTRACT This dissertation aimed to explore the role of electronic procurement on supply chain efficiency within the National Medical Stores that operates in different parts of Uganda. The study sought to achieve three specific objectives: to analyze the effects of electronic payments on supply chain efficiency, to determine the role of electronic tendering on supply chain efficiency and to asses the role of electronic invoicing on supply chain efficiency. To achieve these objectives, a qualitative and quantitative data analysis was adopted. Data was collected through a pre-tested close ended questionnaire and interviews with procurement staff at National Medical Stores and other departments. The study revealed a strong positive correlation between the adoption of e-procurement processes and improved supply chain efficiency at National Medical Stores, with a significant relationship between the two. The results indicated that e-procurement contributes significantly to reducing time taken to procure goods and services, leading to faster delivery times and better coordination between procurement departments and other supply chain activities. In examining the role of electronic tendering on supply chain efficiency at the National Medical Stores, the research findings reveal that electronic tendering has played a crucial role in enhancing the supply chain efficiency of the organization. One of the significant benefits is the reduction of transactional costs as it eliminates the need for physical paperwork and its ability to reduce the lead time for procurement. However, the study also identified a number of challenges encountered during the implementation of e-procurement at National Medical Stores. This included resistance to change from the staff, data security breaches, high cost of implementation and integration of the new system with existing systems and processes. The study recommends that the National Medical Stores look into strengthening the training of staff, invest in more advanced e-procurement systems that provide real-time visibility of the procurement process, achieve integration of e-procurement throughout the supply chain. The study also provided practical recommendations for organizations that are considering implementing e-procurement to enhance their supply chain efficiency, because these four key e-procurement elements help reduce uncertainty, accelerate processes, ensure timely order fulfillment, and enhance overall supply chain performance. Keywords: Electronic Procurement, Electronic Payment, Electronic Tendering, Electronic Invoicing, Supply Chain Efficiency.