Effect of Electronic Procurement on Organizational Supply Chain Performance: A Case Study of the Petroleum Authority of Uganda
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Date
2024-09-17
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Uganda Christian University
Abstract
This study investigated the impact of electronic procurement on organizational supply chain performance, with a specific focus on the Petroleum Authority of Uganda. Employing a descriptive cross-sectional research design, the study aimed to evaluate the roles of electronic tendering, e-invoicing, and e-payments in enhancing supply chain efficiency and effectiveness. A sample of 45 employees from the procurement department and other related departments were selected through stratified random sampling, and quantitative data was collected using structured questionnaires and data analyzed using SPSS. The findings indicate that electronic tendering significantly enhances supply chain performance by increasing efficiency, reducing costs, and fostering competitive bidding. Despite these benefits, some challenges related to procurement cycle times and communication persist. Electronic invoicing has also demonstrated a positive impact, particularly in streamlining payment processes and improving cash flow management. However, the effectiveness of electronic invoicing in reducing errors and disputes with suppliers varies across organizations. Electronic payments have contributed to faster transactions, improved administrative efficiency, and enhanced financial security, though issues related to transaction accuracy and cash flow management remain. The study concludes that while electronic procurement systems offer considerable advantages in operational efficiency, cost-effectiveness, and supplier relationships, there are areas for improvement. Recommendations include enhancing system integration and user training for electronic tendering, fully integrating electronic invoicing systems into financial workflows, and addressing challenges associated with electronic payments. These measures will help organizations fully capitalize on the benefits of electronic procurement and achieve more consistent performance improvements in their supply chains.