Application of ICT in procurement: case of Nairobi City Water And Sewerage Company

Abstract

The research was a case study of NCWSC which was in the process of implementing Enterprise Resource Planning (ERP). The current procurement system, the Stores Procurement Management System (SPMS) undergoes very lengthy manual processes and lacks integration with other core systems in the company. Anderson, K. V., Juul, N.C and Pedersen, J. K. (2003) stated that an organization is able to realize the full benefits of ICT in procurement only when its internal financial system is interconnected with the procurement system. The research aimed at establishing the extent to which NCWSC used ICT in procurement system and the strengths and weaknesses of the system. Data was mainly collected through questionnaires and also using secondary data. It was established that whereas response from open ended questions was appealing, the level of neutral responses for closed ended questions was very high. The data was analyzed using the statistical Package for Social Sciences (SPSS) and Microsoft Excel. The study revealed gaps such as lack of enough procurement professionals, problems adhering to the annual budget since the budget module in SPMS is inactive and also underutilization of Oracle Financials. To utilize the good knowledge base of Information and Communication Technology (ICT) in the company, the research recommended the implementation of the basics of ICT in procurement such as advertisement of tenders via websites. This concept was used by government ministries in Kenya, according to Nyandimo (2011).