THE ROLE OF ELECTRONIC PROCUREMENT ON SUPPLY CHAIN

MANAGEMENT: A CASE STUDY OF RIHAM COLA

BY

NAME: ................................................................

RE. NO: .................................

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF BUSINESS

AND ADMINISTRATION IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF A DIPLOMA OF
PROCUREMENT AND LOGISTICS MANAGEMENT
OF ..........................INSTITUTE.

MAY 2018
 CHAPTER ONE

1.0 Introduction
This chapter presents the background of the study, statement of the problem, purpose of the
study, objectives of the study, research questions, and scope of the study significance of the
study and conceptual framework.

1.1 Back ground of the study

The revolution of information technology (IT) is having a profound effect on methods of
purchasing and selling. IT is an acronym frequently used to represent the combined systems and
applications that are based around computer power is all embracing that can be used to discuss
an application such as emails or business sector such as e-procurement.
Procurement is the most commonly employed to refer to the purchasing of goods and services
for the day to day operation of a business. In general, companies today have not automated
indirect purchases. E-procurement is more than just a system for making purchases online. Some
companies implement e-procurement and succeed while others fail. E-procurement is about
taking this process online and automating the whole procedure with the underlying aim centered
on saving money. E-procurement has been defined by charted constitute of purchasing (CIPS) as
using the internet to operate the fractional aspects of requisitioning authorizing ordering,
receiving and payment process for the required serve Business to business online procurement
has emerged as one the hottest topics on the world of commerce and technology. The growth of
the internet and commercial web based application are offering trading even increasing
operational cost saving to enterprises.
Presitti(2012) defined e-procurement as a technology solution that facilitates cooperate buying
using internet. It has the power to transform the purchasing process because it pervades all of the
identified by the supply manager.
ITRG(2010) e-procurement is an intranet based purchasing application and according to
Henbury, increased costs, competition and customer pressures have driven companies of
excisions. Lyons (2011) states that the of an investment in e-procurement can be both and hard
and soft implying its directly measurable receipt.
Electronic procurement is defined as the use of internet for exchange of important information
and purchase of goods and services especially orders and payments between business, consumers
and firms. Henbury (2011) points out that e-procurement will be a solution to enable those
employees within an organization who have the necessary authority to match purchase or forms
and use automated system. Therefore the idea with e-procurement is to provide these employees
with an application on their companies that allow browsing catalogues line fill in purchase order
and send them off for either approval form supervision or directly to the supplier.
According to Lonergan, Eoin study guides, e-procurement also covers the use of internet to build
more collaborative ways of working between the customers and suppliers and with companies
themselves.
Supply chain on the other hand is the process of planning implementing and controlling the
operations of supply chain aiming at satisfying customer requirements and needs as efficiently as
possible. Supply chain management deals in movement and storage stock control of raw
materials, work in progress, inventory and finished goods from a point of origin to a point of
consumption.
Msreenivas asserts that supply chain refers to the flow of physical goods and associated
information from the source of the customer, key supply chain activities include production,
planning, purchasing, distribution, customer service and sales forecasting. It’s also contented by
an American professional association that supply chain management involves sourcing,
purchasing (procurement), conversion and logistics management activities. In summery supply
chain management refers to the systematic, clear, streamlined approach to managing the overall
flow of information, raw materials, services from supplies through factories and ware house to
consumer or end user.

1.2Problem statement
With the growing modernity, dynamism and global village, the embracement of electronic
procurement shall greatly make the business purchasing operation easy and real. By
accommodating e-procurement in an organization, business, coke cola company has embraced e-
procurement in order to cut/minimize on its ever increasing costs, time saving, Despite the factor
that the company embraced e-procurement, it still faces couple of challenges such as fraud,
assessing information, maintain vendors role of e-procurement on supply chain management.
It is therefore throughout this back ground that the researcher seeks to find out the role of e-
procurement on supply chain management at Riham Cola Limited.

1.3 Main Objective

To find out the role of e-procurement on supply chain management.

1.4 Specific objectives

i. To ascertain the benefit of e-procurement in organizational purchase supplies.
ii. To determine the critical success factors influencing the success of e-procurement.
iii. To find out challenges faced by e-procurement on supply chain management.

1.5 Research questions

i. What are benefits of E-Procurement in organizational purchase supplier?
ii. What are the critical success factors that influence the success of e-procurement?
iii. What are the challenges faced by e-procurement on supply chain management?

1.6 Scope of the study

1.6.1 Content scope/Subject scope
The study will focus on the role of E-Procurement on purchasing in supply chain management. It
was carried out at Riham Cola Limited.
1.6.2 Geographical scope
The research will be carried out at Riham Cola Limited located at Kawempe approximately 6
Kilometers from Kampala.
1.6.3 Time scope
The study took data for period from 2010 up to date.

1.7 Significance of the statement

The study helped the researcher to attain a bachelor’s degree in procurement and logistics
management since it was part of the requirements.
The study diversified knowledge on E-Procurement.
The findings also helped to increase the speed at which purchasing and supply of goods is done.
The research helped to assist other future industries or scholar who wishes to carry out their
research in the related field.

1.8 Conceputal Framework

Indepednt variable Dependent Variable

Supply chain management

E-Procurement
 Inventory management
 E-tendering and forecusting
 E-invoincing  Warehousing
 E-payment  Transport
 Cusomer service
 Procurement and supply
management

Intervenning Variable

Government policicies