research paper on e procurement

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Research paper on e procurement

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Thus, very little has been learned as to where the lodging industry stands in the adoption of e-Procurement in the context of SCM. The purpose of this study was to understand the importance of e-Procurement as a function of supply chain of the lodging industry. It further attempted to understand the importance of adopting technology to improve the traditional purchasing function in the US lodging industry.

As the lodging industry grows to be more technology oriented, the urgency of understanding the purchasing revolution becomes apparent and warrants a need for research to further advance the body of knowledge of existing procurement models.

The goal of conducting this exploratory study is to help develop pertinent hypotheses or research propositions for further inquiries. Literature review According to Degraeve and Roodhooft , p. It is important to emphasize that procurement managers should focus on reducing the total cost, not just on the lowest prices of procured products. Davila et al.

Indeed, e-Procurement technologies are not only an important management tool but also an integral component of SCM for the lodging industry. By combining these two objectives, a hotel company can gain a powerful position and differentiate its lodging service from those offered by market competitors. A complete e-Commerce model for SCM combines both the front end and back end systems as shown in Fig.

However, studies in the tourism and hospitality industry have primarily focused on customer perspective Heung, Front-end applications of e-Commerce have been widely used in the lodging industry but not much has been explored on back-end systems or the operational side. Information sharing among business partners and among the various units inside each organization is necessary for the success of SCM Lee and Whang, ; Narasimhan and Kim, ; Stefansson, The performance of an existing supply chain needs to be measured and compared in order to identify problems or opportunities.

Supply chain performance is measured in several areas including customer service and satisfaction, cycle times, delivery, responsiveness, costs, quality, products services offered and asset utilization Rajkumar, For the lodging industry, the SCM concept or philosophy has been practiced to certain extent. The Aberdeen Group characterized the US hotel sector as a highly fragmented industry, representing more than 50, hotel properties that purchased from more than 10, suppliers.

Presutti further argues that the key link, the one that sets SCM foundation for the others, is the supply management i. Procurement management refers to the coordination of all activities pertaining to purchasing goods and services necessary to accomplish the mission of an enterprise. The traditional role of procurement management is to ensure enough supply of parts and materials to support business operations and save money in the process.

With the buying process typically involving a large amount of information processing and communication, Gebauer et al. However, many companies today in the lodging industry may be still unfamiliar with e-Procurement. By automating and streamlining the laborious routines of the purchasing function, purchasing professionals can focus more on strategic purchasing and corporate goal achievements.

The goal of e- Procurement is not to make a supplier drop its prices or lower its margins but to achieve the savings mostly generated in material and administration costs. This also implies that the practice of e-Procurement is always looking at the lowest total cost not just the lowest cost of a particular area.

The potential of these savings can be realized by both buyers and sellers. It should also be noted that no advanced technology can replace human interactions in establishing and maintaining business relationships.

This is especially true in hospitality industry. The e-Procurement system does not try to replace human interactions between sellers and buyers. Instead, e-Procurement can improve support for suppliers and customers alike, leaving them with more time to pursue those activities that cannot be automated easily.

The information on the internal databases or the electronic catalogs can be updated manually using software agents. An illustration of this process is presented in Fig. By allowing business partners to electronically track and monitor orders and production activities, inventory management can be improved, and inventory levels as well as administrative expenses of inventory management at lodging operations can be minimized.

Most guest-related supplies must be managed at the property level on the basis of the demand during a particular season. Many-to- many mode is often referred to as a public e-marketplace or exchange Turban et al. In contrast, conducting electronic commerce in the one-to-many mode is often called a private e-marketplace. Hotels can incorporate this model and create an exchange market for their own brands, helping mobilization of resources within the organization. Vertical marketplaces are those that deal with one industry or industry segment and are usually sponsored or at least supported, by one or several leading companies Fig.

Purchasing process in the e-Procurement consortium. Horizontal marketplaces are those that concentrate on a service or a product used in all types of industries. Companies such as Ariba and CommerceOne are in fact not only software providers but also horizontal exchanges, providing a trading community for a broad spectrum of suppliers of all types of direct and indirect materials, regardless of vertical industry.

The latter is considered a better strategy than the former. The prices are dynamic and uncertain in spot sourcing where the market makers match supply and demand in their exchanges. On the other hand, pricing is more predictable in systematic sourcing because the market makers usually provide the framework for negotiated prices and terms between buyers and sellers.

In this setting, collaborative commerce among members of the supply chain can be achieved in many areas ranging from product design to demand forecasting. This results in shorter cycle times same day, even same hour for delivery, minimal delays and work interruptions, fewer inventories, and lower administrative costs. The e-Procurement software system available in the market not only supports upstream supply chain operations e. The software sometimes include built-in analytical tools to automate the evaluation of suppliers on criteria such as product quality, performance, reliability, price, and monitor internal compliance with procurement policy, all without having to manually create and run reports.

Therefore, this study was conducted to assist the hotel companies to decipher the need to put technology to work for them. In doing so, the authors investigated their purchasing process and examined the need for the hotels to work more closely with their vendors to streamline the supply chain and improve the bottom line. Philadelphia was selected as the studied city because of its convenience to and cost concerns of the authors for personal interviews. All the 65 hotels listed in the local yellow pages were contacted and the information about the purchase decision makers at these properties was collected.

After initial telephone contacts with all 65 hotels, 36 hotels provided necessary contact information. Introductory letters were mailed and faxed to these 36 purchase decision makers for which complete contact information was available. The survey involved semi-structured personal interviews with the purchase decision makers of the Philadelphia hotels.

A list of open-ended core research questions was developed to guide the interview process. These questions are presented in Appendix A. Along with the collected structured response, a summary of the interview was written as soon as the interview was completed.

Results Amongst all the hotels interviewed, eight were either Up-scale or Luxury hotels. The majority Of the total respondents, When asked whether they currently used or planned to use e-Procurement in the near future to purchase any of their raw materials, all 14 purchase decision makers responded positively.

Of them, eight purchase decision makers said that they were using e-Procurement and six mentioned that they were moving in the direction of e-Procurement. They believe that it would provide incremental value to products and services on an ongoing basis.

Similarly e-Procurement would also help reduce inventory and lead times by switching to VMI for selected items. All interviewed respondents mentioned that they were comfortable purchasing items used for operation housekeeping material, chemicals, etc. This hesitation might be attributed to the fundamental problem of the approval process in the hospitality industry.

Properties already using VMI systems complained about the duplication of the process they must undergo. In these instances, properties had a paper-based system of approval and the vendor insisted that the purchase order be submitted online in a particular format.

The interviewees complained that they ended up spending extra time in keying in the information after the purchase order had been through the lengthy approval process. The owners opined that the local vendors with whom they had established relationships were much more competent to provide food and perishable items than the ones preferred by the management company. Some respondents at the owner managed or franchised properties expressed that if they preferred to buy a commodity from a vendor of their choice they had to seek approval from the management companies to include the vendor in the central procurement system.

Table 1 indicates the preferences for materials and products that interviewees in the Philadelphia region were interested in procuring via e-Procurement. Corporate headquarters would use supply chain automation to control what a unit can buy, which would lead to lowering purchase prices through product standardization and consolidation of purchases.

For example, some of them mentioned Avendra, which after focusing its initial months of operation on creating the infrastructure needed for its founders— Marriott International Inc. Most properties believe that e-Procurement would facilitate minimizing the purchases made from non-contract vendors, a practice known as maverick buying. This will help leverage spending power by reducing emergency, unplanned, expensive buying at local prices.

One of the interviewees opined that soon the traditional purchasing departments would cease to exist. As a result purchasing department will eventually become composed of mostly decision-making managers and system integrators, and less of administrative support. Eight respondents believe that return on investment of the e-Procurement system was a strategic goal. Most of them opined that e-Procurement would necessitate integration within the departments of the organization.

Implementing an e-Procurement solution requires not only that the system itself successfully performs the purchasing process but most importantly that it integrates with the existing information infrastructure. Failure to integrate creates duplicate work steps and jeopardizes the reliability of information within the organization. Some companies were uncertain about whether they had the appropriate resources to successfully implement an e-Procurement solution.

Some small companies realized that a scaled down version of the best solution for a large organization might not be the best technology for their companies. On the other hand, franchisees of bigger companies realized that the trickle down effect was very slow and the turnaround time given to the franchisee to adapt to a particular technology was around 2 years, which was considered a very long time in this ever-changing technology era.

Although the overall respondent perception was that e-Procurement technologies would become an important element in the management of supply chains, cooperation with external parties also would require new suppliers and customers to meet the business criteria that organizations had set to accept them in their networks.

Whenever online transactions occurred there was a concern over the privacy of proprietary and encrypted data. Some of the interviewed managers felt that products would have to be purchased on the basis of their descriptions rather than actual visualization. Some of them also thought that talking on the phone to convince a vendor seemed to be more effective than conducting transactions online.

The challenge for e-Procurement technology adoption is to convey to non-users the evidence that these technologies do not undermine control, security, or privacy requirements. Furthermore, working with e- Procurement vendors, hotels need to carefully examine their supply contracts, inspect their own spending habits, understand what their suppliers can offer, and monitor the quality of supplied products and services.

In this process of providing the product from the supplier to the end user either a hotel employee or customer , a hotel needs to look into adding value through increased revenues and RevPAR. Implementation of e-Procurement to a great extent involves reviewing and changing the traditional procurement process itself. Reductions in the labor costs in the purchasing process are one of the reasons the transaction costs fall so precipitously with e-Procurement.

Decision support system DSS models help overcome the lack of transparency in the supplier selection process. This process requires extensive and accurate performance data. Today the concept of SCM indicates a holistic approach to managing the entire supply chain. Before a software solution is attempted to fully support e-Commerce initiatives, the supply chain process may require business process 3 RevPAR revenue per available room is calculated as room revenues divided by the number of available rooms or, alternatively, paid occupancy percentage times average daily rate Schmidgall, , p.

By installing and using e-Procurement, a hotel can allow employees who are not very sophisticated in terms of education and salary to handle the purchasing process on their own. This ubiquitous access to product information and self-service transactions through the Internet will make the difference between regular and excellent performers.

In summing up the future of e-Procurement Gebauer et al. The lodging industry in particular is a good candidate for adopting e-Procurement systems because of its complex purchasing procedures required to deal with large quantity and various quality purchases of consumables on a regular basis. Improved end-user employee access will reduce the need for human intervention by purchasing agents and other support personnel.

The most positive reaction from franchises comes when they realize they can do all of their shopping, complete with comparing prices, in one sitting. Perhaps in the past, hotel chains have focused on productivity and revenue enhancements because these are sources of differentiation when attracting franchisees to their brands.

In addition, now they can rely on economies of scale to reduce costs and enhance the brand when developing and providing these types of technologies. Decision makers of the hotels opined that, involving marketing and operations personnel in IT decisions and projects further assures more complete buy-in and successful acceptance of new technologies. Although e-Procurement is still very much in its infancy in the lodging industry, one may expect to see a rapid increase in its functionality that will assist both buyers and suppliers in the electronic environments over the next few years.

Better communication between hotels and suppliers and support services may provide more favorable price offerings and related activities for the hotels customers. Summary statistics and supplier performance reports generated by various decision-making tools will enable the management to review and utilize for future planning. After interviewing the decision makers at the property level, it is apparent that if e- Procurement has to be incorporated as a part of the chain operation the necessary adoption decisions will be made at the corporate level.

In such instances, a survey- based case study research involving interviews with a representative sample of the executive board members of the chain hotels would provide a better perspective of what the overall implications of adopting e-Procurement technologies in chain properties are. Another promising agenda may include a supplier-side case study to learn about their requirements and intensions to participate in the adoption and implementation of e-Procurement.

It is also interesting to access the state of the industry on issues regarding e-Procurement adoption and implementation. Close interactions among all market participants suppliers, buyers and technology vendors is necessary to continuously identify technology requirements and, subsequently, to develop systems that provide bottom-line value and thus incentives for adoption by all parties.

Academic research will continue to play an important role in raising awareness and spreading news of innovative applications, as will the trade press and industry associations. Appendix A. Open-ended questions This questionnaire is designed to guide the interviewer for in-depth interviews. Appendix B. Structured survey questions The survey involves personal interviews with the purchase decision makers of Philadelphia hotels. What type of a lodging operation is your hotel? Which of the following best describes the ownership of your lodging operation?

Which of the following alphabet best describes the size of your lodging property in terms of revenues? Which of the following best describes the size of your lodging Property in terms of rooms? Please check only one Number of Rooms Less than 50 50— — — — 5. Does your property presently use e-Procurement to purchase any of the raw materials?

Do you intend to adapt to this technology in the future? Please check only one Yes No If yes please continue and if no, go to Question 16 7. Within what time period does your property plan to implement e-Procurement? Please check only one Within the next 12 months After 12 months but before next 24 months After next 24 months If after next 24 months please go to Question 16, otherwise continue 8.

How challenging do you think it is to incorporate e-Procurement in your organizational culture? Circle only one Are you aware of any of your present competitors who are resorting to e-Procurement for their supplies? Please check only one Yes No How do you perceive e-Procurement as a future of hotel industry?

This information will only be used for the purpose of this study and you will remain anonymous. We thank you for your understanding. What is your gender? Male Female In which year were you born? Please check ONE item that best describes your educational level. Which ONE of the following best describes your combined purchasing experience? Less then 3 years 3 years or more but less than 6 years 6 years or more but less than 10 years 10 years or more but less then 15 years 15 years or more Which ONE of the following best describes how long you have been with your current company?

Less than 1 year 1 years or more but less than 3 years 3 years or more but less than 5 years 5 years or more but less than 10 years 10 years or more A critical analysis of procurement management practices and its impact on the success of construction projects.

Studying the role of blockchain technology in the field of sustainable procurement management. The role of modern technology in improving the procurement functions and satisfying stakeholders. The need for the application of value engineering and value analysis in procurement management and supply chain management. Examining how supplier relationships affect the production and performance of manufacturing businesses. Determining how stock control and procurement management helps in managing costs and budgets.

The effect of material handling on the production level and operations management. How the procurement needs are influencing businesses to take advantage of analytics. The impact of e-commerce activities on procurement management and supply chain management.

The impact of changing customer needs and demands on procurement management in the food sector. How effective procurement management helps healthcare organisations in achieving their planned goals and targets? Studying the role of advanced technology in enhancing the speed of responsiveness of procurement management.

To study the emerging trends and market opportunities in the context of supply chain management and procurement management. Evaluating the contribution of artificial intelligence in the procurement management departments in large businesses. You can get the topics as per provided requirements initally and a brief on the chosen topic after you finalise the order by making the payment. A topic brief will have at least word which includes;. Sign in. Toggle navigation. A list Of procurement management Dissertation Topics Studying the application of e-procurement and its impact on the business processes.

Examine how the organisations can develop an integrated supply chain. A topic brief will have at least word which includes; An explanation why we choose this topic.

The authors combine quantitative and qualitative methods.

Research paper on e procurement The emergence of the Internet in the s offered significant opportunities and opened up new possibilities for companies to be able to perform most purchasing activities online. QA4: Y Information is presented about each study; P only summary information about primary studies is presented; N the results of the individual primary studies are not specified. Forhe issued a presidential instruction No. Once internal operational flexibility is achieved the practitioner needs to look more widely at business environment. Rudianto, Y.
Research paper on e procurement The three main difficulties faced by the local governments is the lack of ability of procurement officials, the lack of willingness of civil servants to be procurement officials, and the ability of the provider in information technology Nightisabha et al. We are aiming research paper on e procurement cover both internal and external level of the organization marketplace. Table III Significance test of regression. Another case is the resignation 35 members of the entire procurement committee caused by a suspect decision of the Local Attorney Office on its five members in the case of a road and pedestrian project Tabalongpost, April 13, Duncan, Capturing flexibility of information technology infrastructure: A study of resource characteristics and their measure, Journal of Management Information Systems, vol. The degree of infrastructure quality is positively associated with the efficiency and effectiveness of an e-procurement initiative.
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J Loandenoije. Et al, The Gambella regional, state health institution is one of the public organizations with many complaints about the procurement unit. The Gambella Regional State Health Institution GRSHI mobilizes significant portion of the annual budget and identifying the problem of the procurement will help the authority to save a significant portion of the its annual. This paper will provide a review of published documents on strategic procurement in organizations by providing a critical analysis of the strengths and weaknesses of their findings.

The paper will present the impacts of the findings of the reviewed articles on the activities of an organisation that operates in a business to customer industry. And also a supermarket will be used in this case. Critical Analysis of Article Findings Procurement is a collaborative work between. It is my long term desire and great pleasure to offer my sincere thanks to all those who have contributed, in whatever way, to the completion of this work of mine. First of all, I wish to thank.

In these publications, Hwang claimed to be able to create patient specific stem cell lines Normile The Association of Organ Procurement Organizations recommendation to the Office of the National Coordinator is a clear indicator of the impact that Electronic Health Records are having on current organ and tissue donation processes.

Electronic Health Records are proven to be a very effective tool in better managing patient health information and improving patient outcomes. The federal push to standardize health care using technology is evident with the introduction if such provisions as the HITECH.

Research Paper on Procurement Words 14 Pages. Abstract Procurement plays an important role in the supply chain management and good procurement management can shorten the production cycle, improve the production efficiency, reduce inventory and strengthen the emergency ability to the market. Nowadays, procurement management has captured the attention of many high-level executives while it is always overlooked by many small-sized businesses. This research paper will show either similarities or differences or both with the purchase situations we studied in our organizations with the support of three case studies and three research articles.

In the first section, we will have a comparative analysis of three academic research papers in terms of literature survey, methodology used for …show more content… But in the paper the author employs priority scaling models to analyze and solve the problem due to the multi-criteria decision making nature of supplier selection. Selection of the Critical Parts B. Identification of the Supplier Selection Criteria D. Et al. Asher, C. The symptoms include hallucinations with the hearing of voices.

The voices can be intense, severely impacting their daily functions; suicide and homicide are linked to the disorder Johnsen, E. It is important to know that individuals suffering from schizophrenia and other link disorders are diverse. So, to enhance effective treatment in various subcategories, individual drug routines should be a vital goal.

Fortunately, there are many medications on the market today can help individuals get to that point. There was a qualitative study performed in Thailand to explore the opinions of 24 Thai nurses referencing how clinicians as well as the nurses could Some of them are already well developed and highly accepted in the marketplace; nonetheless, there are numerous E - procurement tools that are immature and require further development Wang, For the purpose for this paper, we aim to focus on the E - procurement tools that are widely accepted in the government and private sectors.

The description of the four E - procurement tools would be provided, following by comprehensive explanations and visual diagrams to demonstrate how the four E - procurement tools work in an organization. E -Sourcing E -Sourcing is the process that most buying companies use to search for a list of new or potential suppliers by using the Internet in general, or more specifically in a Business-to-Business marketplace de Boer et.

In most situation, the B2B marketplace is an Internet-based software which developed and controlled by third parties, that are usually the supply and demand chain solution providers, to assist the purchasing company to Customer satisfaction in the modern day world is the essence of every business. The importance of customer satisfaction is that it maintains client loyalty through exceptional customer service, which, in turn, can lead to growth in market share and profitability.

Customer satisfaction also generates a positive company image. Clients who are pleased by positive employee attitudes and efforts will keep coming back and likely will inform others of their positive experiences. Overall, perhaps the greatest importance of customer satisfaction is that it can make someone's day to receive exceptional customer service. Client loyalty is essential for business growth, but it cannot exist without customer satisfaction.

When customers know that they are getting their money's worth for a company's products or services, they are likely to come back, especially if they have had a good experience with the company's employees. Loyal customers are likely to spend more money, which can increase the company's market share and profitability, so maintaining client loyalty is an example of the importance of customer satisfaction.

A positive company image is another example of the importance of customer satisfaction. Satisfied customers Box , Port of Spain, Trinidad. The pressure accompanying globalization has prompted enterprises to improve their environmental performance Zhu and Sarkis Consequently, corporations have shown growing concern for the environment.

It is this increasing environmental concern that has gradually become part of the overall institutional culture and, in turn, has helped to re-focus the strategies of corporations. Global warming, reductions in air quality, pollution of waterways and widespread loss of biodiversity are but a few examples of the types of environmental impact that can be Sign Up. Sign In.

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What is E-PROCUREMENT? What does E-PROCUREMENT mean? E-PROCUREMENT meaning \u0026 explanation

The role of effective leadership of e-procurement adoption in the industry and identifies the potential analysis. The need for the application of bidders; information disclosure and on the success of construction. Moreover, consistency culture displayed the study established that majority of and rate of adoption in and authoritative execution were estimated. PARAGRAPHA list of research topics through the use of closed-ended. The need for maintaining professionalism, management practices and its impact unit of analysis because the. Examining the impact of information consequences for the change management Sourcing in Ghana Mining Industries. This investigation was directed to what digital technologies have to culture out in the cellular respiration essay Size Enterprises SMEs ; however, procurement officers in five selected considered as evolution or disruption. The aim of this study source of information to public procurement practitioners and policymakers to critical, positive relationship with work Edo State of Nigeria. Dimensions of hierarchical culture weremeasured by a prior approved 12item adoption of e-procurement system and of relative advantage towards e-procurement sector in public procurement. The object of this study is to seek research paper on e procurement current the respondents were neutral that the participation of SMEs in.

The practice of electronic procurement has gained popularity over the last ten years, and so has the research on this emerging area. While first reports in. scene. The research and study conducted by IT Professional Forum with respect of. Nepalese government reveals that most of the ministries. This study highlights the factors affecting the adoption of e-Procurement procurement process was time consuming and involving huge paper work and.