E-procurement and supply chain management the case of standard chartered bank of Kenya
Abstract
Supply Chain Management (SCM) refers to all the processes involved in the designing,
building, and delivering of products to the customers that need them. Effective SCM requires
simultaneous improvements in both customer service levels and the internal operating
efficiencies of the companies in the supply chain. Recent development in technologies enables
organizations to access information easily in their premises. This accessibility of information
is helpful in the coordination of SCM activities. One of the uses of technology in SCM is the
use of an E-procurement System. An E-procurement system connects companies and their
business processes directly with suppliers while managing all interactions between them. This
includes management of correspondence, bids, questions and answers, previous pricing and
multiple emails sent to multiple participants.
The focus of this research project was to establish the impact of E-procurement system in
SCM. The research approach adopted was a case study of the Standard Chartered Bank of
Kenya (SCBK), E-procurement system. Specifically, this study sought to find what motivated
the set-up of the E-procurement system, also to establish what are the benefits derived and the
challenges experienced in the use of the system. The case study took a multiple research
approach which included the review of pertinent literature, and administering of survey
questionnaires. The questionnaires were administered to 100 members of staff of all cadres as
all use the procurement system while secondary data was gathered from the company’s
website.
The study found that an E-procurement system is effective in bringing about a lot of benefits;
this included: better inventory management, better contract compliance where deliveries were
timely and as per specification meaning fewer returns. The study also found that most
challenges were surmountable if with the full engagement of all stakeholders. For a successful
E-procurement system, it is recommended that senior management drive the implementation
and that the roll-out be even included in the company’s strategic plan. The study
recommended that SCBK should enable the system to be linked to suppliers for an even more
efficient procurement process