An evaluation of the adption and implementation of Electronic Procurement System (EPROC) for competitiveness in the Zimbabwe banking sector: The case of Standard Chartered Bank Zimbabwe (2009 to 2012)

Abstract

This research sought to establish the impact of adopting and implementing electronic procurement system for competitiveness in the Zimbabwe banking sector. A case study of Standard Chartered Bank was carried out and relevant literature was used to establish the gaps that the bank is faced with. The research adopted a random sampling technique where each member of the population has an equal and known chance of being selected. A sample size of 40 non-managerial employees, 10 managerial employees was selected. The success of E-procurement hinges on electronic linkages between supply chain partners and must provide features similar to those offered to customers including supplier evaluation reports. To gain the benefits of reduced costs, better sourcing, and so on, it is essential that a reengineering of the procurement process be undertaken. As a result of implementing Internet-enabled procurement technologies, organisations have found that their supplier relationships are redefined and cement good working relations with suppliers, and that, in general, the number of suppliers that an organization can use is reduced significantly. The study concludes that E-procurement has become an enabler for learning best practices as well as a best practice in its own right. Automating and distributing transaction processing into the hands of employees frees the procurement team to do more value-added work which is beneficial to the organizations competitiveness and profitability. It is concluded that E-procurement reduces clerical errors since every re-entry of data is a potential source of error and can lead to pilferage. Web-based procurement can also shorten the lead-time between receipt and fulfillment of orders, thus reducing inventory. When invoice data are transmitted electronically, company cash flow is improved. The study concludes that E-procurement automates the transactional aspect of procurement allowing companies to focus on maximizing the value from supplier relationships. The bank should gather input from stakeholders throughout the organisation, since they are likely to be affected by the reengineering of the procurement process. In view of the research findings a further study to investigate the contribution of Information Technology (IT) to business performance is highly recommended.