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