Feasibility of changing from manual to an electronic procurement system at UTI Domestic.
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Date
2006
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Abstract
Procurement is the acquisition of goods or services at the best possible total cost of
ownership, in the correct quantity, at the correct time, in the correct place for the direct
benefit or use of corporations, governments or individuals (Procurement 2005).
Electronic procurement is the fulfillment of the procurement function by use of the
Internet and new technologies to facilitate a seamless, end-to-end stream of strategic
procurement activities enabling improved responsiveness and analysis within the
procurement organisation (Wheatley 2003).
The aim of the study was to identify the effectiveness and efficiency of the current
procurement processes in place at UTi Domestic and to investigate the feasibility of using
Electronic Procurement as a possible mechanism for Business Process Re-Engineering
within UTi Domestic, to streamline and add value to the overall procurement function.
This study was undertaken at UTi domestic in Johannesburg. Questionnaires were used to
collect data. In total, twenty-eight procurement staff members and six management
members completed separate questionnaires. One hundred percent response rate was
achieved for both groups. The procurement staff completed a structured questionnaire
while management were asked unstructured questions. Data obtained from the
questionnaires were analysed using the Statistical Package for the Social Sciences
(SPSS).
The findings of the study indicated that the procurement process at UTi Domestic was
inefficient and ineffective. The procurement process was in need of redesign.
Controversy existed between management and procurement staff over whether e-procurement
would be the solution to the procurement problem. The researcher
recommended the implementation of an e-procurement solution as a resolution to the
procurement problem, based on the value potential of the solution and the ability of the
solution to positively satisfy all of the aims of the study. As supported by the literature, e-procurement
can make a significant difference to UTi Domestic.
Description
Thesis (MBA)-University of KwaZulu-Natal, Westville, 2006.
Keywords
Industrial procurement--Management., Feasibility studies., Materials management., Theses--Business administration.