The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company

Traditionally, procurement covers the sales and purchase activities between two entities, which covers various aspects from searching, sourcing, negotiating, ordering, and receipt, to post-purchase review. In line with the advancement of Information and Communication Technologies, as well as with th...

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Main Authors: Mohd Nasrun Mohd Nawi, Saniah Roslan, Nurul Azita Salleh, Faisal Zulhumadi, Aizul Nahar Harun
Format: Article
Language:English
Published: EconJournals 2016-10-01
Series:International Journal of Economics and Financial Issues
Subjects:
Online Access:https://dergipark.org.tr/tr/pub/ijefi/issue/32000/353083?publisher=http-www-cag-edu-tr-ilhan-ozturk
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author Mohd Nasrun Mohd Nawi
Saniah Roslan
Nurul Azita Salleh
Faisal Zulhumadi
Aizul Nahar Harun
author_facet Mohd Nasrun Mohd Nawi
Saniah Roslan
Nurul Azita Salleh
Faisal Zulhumadi
Aizul Nahar Harun
author_sort Mohd Nasrun Mohd Nawi
collection DOAJ
description Traditionally, procurement covers the sales and purchase activities between two entities, which covers various aspects from searching, sourcing, negotiating, ordering, and receipt, to post-purchase review. In line with the advancement of Information and Communication Technologies, as well as with the rapid growth of the Internet, more and more people and organisations are becoming connected. In order to move with the times, many governments around the world have looked into implementing e-government systems, part of which is the e-procurement system. This paper presents the advantages as well as challenges faced when implementing an e-procurement system based on results of a case study, from the perspective of a Malaysian company (Telekom Research and Development Sdn. Bhd.) implementing an e-procurement system that has been developed internally, rather than installing an off-the-shelf software application. Internally developed e-procurement systems covers four important dimensions, namely information collected, type of application, contract negotiation, and intelligence analysis, all of which are analysed in view of e-procurement performance. The outcome of this research yielded pertinent information for the company in identifying the strengths and weaknesses of the internally developed e-procurement system, as well as enabling the organisation to highlight the practices and performance as a benchmark to measure the level of success of their own e-procurement system. Thus, due to the potential cost savings and highlighted benefits in this paper, e-procurement requires more attention from the government as related entities for greater expansion and adoption in order to ultimately contribute to the growth and well-being of the country’s economy.
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spelling doaj.art-4cb414cb0dcc426a920745123a6606f92023-02-15T16:11:26ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-10-01673293321032The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian CompanyMohd Nasrun Mohd NawiSaniah RoslanNurul Azita SallehFaisal ZulhumadiAizul Nahar HarunTraditionally, procurement covers the sales and purchase activities between two entities, which covers various aspects from searching, sourcing, negotiating, ordering, and receipt, to post-purchase review. In line with the advancement of Information and Communication Technologies, as well as with the rapid growth of the Internet, more and more people and organisations are becoming connected. In order to move with the times, many governments around the world have looked into implementing e-government systems, part of which is the e-procurement system. This paper presents the advantages as well as challenges faced when implementing an e-procurement system based on results of a case study, from the perspective of a Malaysian company (Telekom Research and Development Sdn. Bhd.) implementing an e-procurement system that has been developed internally, rather than installing an off-the-shelf software application. Internally developed e-procurement systems covers four important dimensions, namely information collected, type of application, contract negotiation, and intelligence analysis, all of which are analysed in view of e-procurement performance. The outcome of this research yielded pertinent information for the company in identifying the strengths and weaknesses of the internally developed e-procurement system, as well as enabling the organisation to highlight the practices and performance as a benchmark to measure the level of success of their own e-procurement system. Thus, due to the potential cost savings and highlighted benefits in this paper, e-procurement requires more attention from the government as related entities for greater expansion and adoption in order to ultimately contribute to the growth and well-being of the country’s economy.https://dergipark.org.tr/tr/pub/ijefi/issue/32000/353083?publisher=http-www-cag-edu-tr-ilhan-ozturkprocurement e-procurement case study e-government malaysian industry internally developed software
spellingShingle Mohd Nasrun Mohd Nawi
Saniah Roslan
Nurul Azita Salleh
Faisal Zulhumadi
Aizul Nahar Harun
The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
International Journal of Economics and Financial Issues
procurement
e-procurement
case study
e-government
malaysian industry
internally developed software
title The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
title_full The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
title_fullStr The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
title_full_unstemmed The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
title_short The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company
title_sort benefits and challenges of e procurement implementation a case study of malaysian company
topic procurement
e-procurement
case study
e-government
malaysian industry
internally developed software
url https://dergipark.org.tr/tr/pub/ijefi/issue/32000/353083?publisher=http-www-cag-edu-tr-ilhan-ozturk
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