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GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION (GIMPA)

ASSESSING THE EFFECTIVENESS OF E-PROCUREMENT IN THE PRIVATE

SECTOR OF GHANA: A CASE STUDY OF COCA- COLA GHANA PRESEN...

Thesis · January 2018

DOI: 10.13140/RG.2.2.21047.75686

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GHANA INSTITUTE OF MANAGEMENT AND

PUBLIC ADMINISTRATION

(GIMPA)

TOPIC:

ASSESSING THE EFFECTIVENESS OF E-PROCUREMENT IN

THE PRIVATE SECTOR OF GHANA: A CASE STUDY OF COCA-

COLA GHANA

PRESENTED BY

ENOCH NYAME

PRISCILLA BOTWE

JUSTICE AKO LARBI

JULIANA ASANTEWAA YEBOAH

SAMUEL ADJETEY SOWAH

A LONG ESSAY SUBMITTED TO GHANA INSTITUTE OF MANAGEMENT

AND PUBLIC ADMINISTRATION (GIMPA), BUSINESS SCHOOL IN

PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF

BACHELOR OF SCIENCE (BSc) DEGREE IN PROCUREMENT

MANAGEMENT

APRIL, 2018

ASSESSING THE EFFECTIVENESS OF E-

PROCUREMENT IN THE PRIVATE SECTOR OF

GHANA: A CASE STUDY OF COCA-COLA GHANA

PRESENTED BY

ENOCH NYAME 217003834

PRISCILLA BOTWE 217000703

JUSTICE AKO LARBI 217000800

JULIANA ASANTEWAA YEBOAH 217000762

SAMUEL ADJETEY SOWAH 217004687

A LONG ESSAY SUBMITTED TO GHANA INSTITUTE OF MANAGEMENT

AND PUBLIC ADMINISTRATION (GIMPA), BUSINESS SCHOOL IN

PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF

BACHELOR OF SCIENCE (BSc) DEGREE IN PROCUREMENT

MANAGEMENT

APRIL, 2018

i

DECLARATION

We hereby declare that this submission is our own work in pursuit of BSc Procurement

Management. To the best of our knowledge, it does not contain any material previously

published by another person, nor materials which have been accepted for another award within

this institution or elsewhere, except for those which acknowledgement has been duly made

within the text.

NAME OF STUDENTS INDEX № SIGNATURE DATE

Enoch Nyame (217003834) ________________ _____________

Priscilla Botwe (217000703) ________________ _____________

Justice Ako Larbi (217000800) ________________ _____________

Juliana Asantweaa Yeboah (217000762) ________________ _____________

Samuel Adjetey Sowah (217004687) ________________ _____________

ii

CERTIFICATION

This is to certify that this project work entitled: Assessing the effectiveness of e-procurement

in the private sector of Ghana. A case study of Coca-Cola Company Limited, Ghana was

carried out by Enoch Nyame, Priscilla Botwe, Justice Ako Larbi, Juliana Asantewaa Yeboah

and Samuel Adjetey Sowah and was supervised in line with the guidelines for the supervision

of project work laid down by Ghana Institute Management and Public Administration

(GIMPA).

NAME OF SUPERVISOR: MR. DANIEL GAMETI

SIGNATURE: _________________________ DATE: _____________

iii

ACKNOWLEDGEMENT

We give thanks to the Almighty God for his protection and guidance throughout this work. We

wish to acknowledge with thanks, to our supervisor, Mr. Daniel Gameti for his time, warm

reception, constructive suggestions, and encouragement in making this project work a success.

We would also like to thank the entire management and staff of Coca-Cola Company Limited,

Ghana, for their co-operation and response to our questionnaires that aided in the writing of

this piece of work.

Finally, we wish to express our gratitude to our families and friends for their prayers, their

moral and financial support throughout our education and the writing of this project work.

iv

ABSTRACT

E-procurement is a strategy that uses technology to drive out waste and speed up the

procurement cycle. Some companies over the period have succeeded in implementing e-

procurement while others have failed at it. This study assessed the effectiveness of e-

procurement in the private sector of Ghana, using Coca-Cola Ghana as a case study. Specific

objectives that emanated from the study were to identify problems that end users and buyers

faced before the inception of e-procurement, assess the deployment of e-procurement and its

impact on Coca-Cola Ghana, ascertain the effects of e-procurement on the general performance

of Coca-Cola Ghana and develop possible measures and alternatives that can make e-

procurement fully effective. The study used qualitative and descriptive research design. The

sampling technique adopted was the purposive Sampling technique. A sample size of 40 was

used of which 23 were retrieved. The collected data were analyzed using Microsoft excel and

presented in tables, pie and bar charts. The discussion of findings was based on the

aforementioned research objectives of the study. It revealed difficulties in identifying and

tracing contract documents, large volume of paper work, delays in contract processing,

difficulty in modifying contracts as some of the challenges Coca-Cola faced before the

inception of e-procurement. Again, Coca-Cola deploys e-tendering and e-sourcing as the major

procurement activities undertaken electronically. E-procurement has improved record keeping,

communication, compliance to procurement processes and efficiency within Coca-Cola. The

study recommends that the management of Coca-Cola should consider employing e-

procurement experts, using software with user-friendly interface, actively engaging suppliers

in e-procurement training and having a reliable backup system to ensure continuity of

procurement activities.

v

TABLE OF CONTENT

Contents

DECLARATION...................................................................................................................... i

CERTIFICATION .................................................................................................................. ii

ACKNOWLEDGEMENT ..................................................................................................... iii

ABSTRACT ............................................................................................................................ iv

TABLE OF CONTENT .......................................................................................................... v

LIST OF TABLES ............................................................................................................... viii

LIST OF FIGURES ............................................................................................................... ix

CHAPTER ONE: INTRODUCTION ................................................................................... 1

1.1 Background of the Study ................................................................................................. 1

1.2 Statement of the Problem ................................................................................................ 2

1.3 Research Questions ......................................................................................................... 4

1.4 Research Objectives ........................................................................................................ 4

1.5 Significance of the Study ................................................................................................ 4

1.6 Scope of the Study........................................................................................................... 5

1.7 Organization of the Study ............................................................................................... 5

CHAPTER TWO: LITERATURE REVIEW ...................................................................... 7

2.0 Introduction ..................................................................................................................... 7

2.1 Procurement .................................................................................................................... 7

2.2 E-Procurement ................................................................................................................. 8

2.3 Deployment of e-procurement ...................................................................................... 11

2.4 Risks Associated with E-Procurement .......................................................................... 11

2.5 Impacts of E-Procurement ............................................................................................. 14

2.5.1 Compliance ............................................................................................................. 14

2.5.2 Efficiency ................................................................................................................ 15

2.5.3 Communication ...................................................................................................... 19

2.5.4 Transparency .......................................................................................................... 19

vi

2.6 Keys to E-Procurement Success ................................................................................ 20

2.7 Empirical Literature Review on E-Procurement ........................................................... 21

CHAPTER THREE: METHODOLOGY .......................................................................... 24

3.0 Introduction ................................................................................................................... 24

3.1 Research Design ............................................................................................................ 24

3.2 The Research Population ............................................................................................... 24

3.3 Sample and Sampling Procedure................................................................................... 25

3.4 The Research Instruments ............................................................................................. 25

3.4.1 Primary Data ........................................................................................................... 25

3.4.2 Secondary Data ....................................................................................................... 26

3.5 Data Collection Procedure ............................................................................................ 26

3.6 Tools for Data Analysis ................................................................................................ 26

CHAPTER FOUR: RESULTS AND DISCUSSION ......................................................... 27

4.0 Introduction ................................................................................................................... 27

4.1 Data Interpretation......................................................................................................... 27

4.2 Discussion of Findings. ................................................................................................. 53

4.2.1 Problems with procurement prior to the implementation of e-procurement .......... 53

4.2.2 E-procurement deployment in Coca-Cola and its perceived impacts ..................... 54

4.2.3 Effects of e-procurement on Coca-Cola’s general performance ............................ 54

4.2.4 Making e-procurement fully effective .................................................................... 58

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS ...................................................................................................... 60

5.0 Introduction ................................................................................................................... 60

5.1 Summary of Findings .................................................................................................... 60

5.2 Conclusion ..................................................................................................................... 61

5.3 Recommendations ......................................................................................................... 62

vii

REFERENCES ...................................................................................................................... 64

APPENDIX ............................................................................................................................ 69

QUESTIONNAIRE ............................................................................................................. 69

viii

LIST OF TABLES

Table 4. 1: Administration and receipt of questionnaires ....................................................... 28

Table 4. 2: How training helps employees operationalize e-procurement .............................. 46

Table 4. 3: Challenges in contract processing contracts before e-procurement implementation

in Coca Cola ............................................................................................................................ 47

Table 4. 4: Challenges in contract development and maintenance before e-procurement

implementation in Coca Cola.................................................................................................. 48

Table 4. 5: Has e-procurement resolved existed procurement problems ................................ 49

Table 4. 6: Measures to improve e-procurement effectiveness in Coca-Cola ........................ 50

Table 4. 7: Positive effects of e-procurement on Coca-Cola Company Limited .................... 52

ix

LIST OF FIGURES

Figure 4. 1: Procurement's position within the organization .................................................. 29

Figure 4. 2: Department in which respondents work .............................................................. 30

Figure 4. 3: Procurement system employed by Coca Cola ..................................................... 31

Figure 4. 4: Procurement areas where Coca-Cola is actively involved .................................. 32

Figure 4. 5: Effect of e-procurement on volume of paper work ............................................. 33

Figure 4. 6: Effect of e- procurement on repetition of administrative procedures ................. 34

Figure 4. 7: Mistakes which would have occurred in the old paper base system ................... 35

Figure 4. 8: Effect of e-procurement on buyers' efforts to achieve same results as compared to

paper-based system ................................................................................................................. 36

Figure 4. 9: Effects of E-procurement on Buyer's time to concentrate on their core activities

................................................................................................................................................. 37

Figure 4. 10: Effect of e-procurement on the ease of retrieval of documents ........................ 38

Figure 4. 11: Effects of e-procurement on time spent in procuring ........................................ 39

Figure 4. 12: Results of e-procurement processes in planning for services required under

procurement as compared to paper based system ................................................................... 40

Figure 4. 13: Effects of e-procurement on completing request for contracts ......................... 41

Figure 4. 14: Effects of e procurement on getting approvals compared to paper-based system

................................................................................................................................................. 42

Figure 4. 15: Effects of e-procurement on processing invoice for payment ........................... 43

Figure 4. 16: Effects of e procurement on buyer's compliance in Coca-Cola's procurement

processes ................................................................................................................................. 44

Figure 4. 17: Organizing of e-procurement workshop for suppliers and employees.............. 45

Figure 4. 18: Has e-procurement affected Coca-Cola in a positive way? .............................. 51

1

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

E-procurement is the business to business or business to consumer or business to government

purchase and sale of supplies, works and services through the internet as well as other

information and networking systems such as electronic data interchange (EDI) (Lysons &

Farrington, 2012).

Organizations procure goods, services and sometimes work in its operations. Today, the advent

of the Internet as a business systems platform has been a catalyst for major changes, in the

operations and status of organizational procurement. Current trends in Information

Technologies have changed the way businesses operate. Many organizations have turned their

attention to Electronic Commerce technologies to improve the efficiency of their business

practices. The most prominent form of e-commerce system concerning interactions between

businesses that have recently received attention is Electronic Procurement System (Hawking

& Stein, 2004).

In order to reduce the total costs spent on the purchasing process, ICT aided technologies are

used and e-procurement is prevalent to implement in recent times by both public and private

enterprises. Although the opportunities for improvement seem abound, both private and public

sectors are still cautious as far as the adoption of electronic technologies is concerned (Zheng,

et al., 2004).

2

According to Subramaniam and Shaw (2002), e-procurement in businesses automates an

organization’s purchasing process, reduces transaction costs, improves inter-organizational co-

ordination within the supply chain, improves relationship with business partners and offers

competitive sourcing opportunities for the buyer organizations.

There are numerous identified benefits of e-procurement. Transparency International (2011)

and Handfield (2011) opine that e-procurement makes it easier to handle contracts, increases

integrity in procurement systems, reduces the time between need recognition, release and

receipt of an order, improves communication both within the buyer company and with

suppliers and minimizes total overhead costs in the purchasing area .

However, not much work and research has been done to look at the effectiveness of e-

procurement in Ghana. It is in this light that this research was conducted to assess the

effectiveness of e-procurement on procurement practices using Coca cola Ghana Limited as a

case study.

1.2 Statement of the Problem

The procurement function like every other functional department in an organization is prone

to difficulties or challenges. Such challenges cited by Ameyaw et al (2012) include corruption,

detection of maverick procurement and weak enforcement of procurement rules. Trkman and

McCormark (2010) share the opinion that there are positive impacts such as improving

transparency and ensuring compliance to procurement processes when it has been implemented

in organizations. Aberdeen Group (2005) advocated that these benefits provide answers to

most of the problems that have been identified in procurement. Osei-Owusu (2013) encourages

3

the use of e-procurement in Ghana companies due to some benefits accompanied by the

technology. These benefits include reducing delivery and ordering times, improving efficiency

and ability to achieve low prices. Shalle et al (2013) lauds good e-procurement software

systems in organizations as it positively impacts time and effort required to complete

purchasing transactions through the eradication of traditional paper chain requisitions,

approvals and payments.

However, the procurement process is still facing challenges and more so it is still done

manually in many organizations. e-security used in the electronic procurement systems, the

quality of software that is being used, the level at which training of staff as well as the

continuous upgrade of the system have impacted the effectiveness of e-procurement among

organizations implementing it at a very large extent (Waruguru & Kiruri, 2015).

Also e-procurement ineffectiveness is as a result of inadequate the funds to install software

systems that are right for their business activities and also the lack of knowledge and skills on

the side of workers on how to operate these electronic systems. In some cases, the firms have

to train their suppliers.

However, not much work and empirical research has been done to look at the effectiveness of

e-procurement in Ghana. It is in this light that this research would be conducted to assess and

measure the effectiveness of e-procurement practices so as to identify problems in the process

and establish better e-procurement practice alternatives if there are any. In view of this study

will be undertaken using Coca Cola Ghana as a case-study.

4

1.3 Research Questions

In the process of assessing the effectiveness of e-procurement in Coca Cola Ghana, the findings

of this study are expected to answer the following questions;

1. What problems did end-users and buyers face before the inception e-procurement in

Coca Cola?

2. How is e-procurement deployed in Coca cola and what was its perceived impact?

3. What are the effects of e-procurement on Coca cola’s general performance?

4. What possible measures can be put in place to make e-procurement fully effective?

1.4 Research Objectives

The overall objective of the study is to assess the effectiveness of e-procurement in Ghana.

Hence, the specific objectives of this study are;

1. Identify problems that end-users and buyers faced before the inception e-procurement

2. Assess the deployment of e procurement and its impact on Coca Cola Company

3. Ascertain the effects of e procurement on the general performance of the organization

4. Develop possible measures and alternatives that can make e procurement fully effective

1.5 Significance of the Study

The study would establish the effects e-procurement has impacted on Coca Cola’s procurement

practices to know whether Coca Cola’s perceived benefits for implementing e-procurement

has been achieved and if not, will be used in identifying possible corrective actions to make e

procurement effective.

5

Also, challenges encountered by end-users and buyers would be of great importance for

continuous and effective improvement in procurement practices of coca cola.

This study, when completed, would serve as a reference material in the library for further

research concerning effectiveness of e-procurement practices. Additionally, as students, the

research is in partial fulfilment of the requirement for award of a Bachelor of Science in

Procurement Management.

1.6 Scope of the Study

Coca-Cola Company Limited Ghana will be used as the area of study. The study is limited to

the e procurement practices of Coca-Cola Company Limited, Ghana. The subject matter of the

research is on assessing the effectiveness of e procurement practices in the organization. The

population was drawn from the staff and management of Coca-Cola Company Limited, Ghana.

1.7 Organization of the Study

The project work is organised into five chapters which are as follows;

Chapter one (1) contains introduction that gives the background and portray the subject matter

of the project. Chapter two (2) contains the literature review. It is made up of relevant concepts,

theories ideas and statements written by authors covering areas of electronic procurement

practices and its effects. Chapter three (3) sets out the methodology of the study, that gives

details about the population, sampling methods used, instruments for data collection, the

research design employed and the procedures for data analysis for the study. Chapter four (4)

encompasses data presentations and analysis of the study, that is, the analysis of data obtained

6

from questionnaire and interviews. Chapter five (5) contains the summary, recommendation

and conclusion of the entire research work.

7

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter reviews the related literature on the topic under study. It considers the theoretical

literature involved in the subject matter and also provides a synopsis of the opinions expressed

in professional publications, academic journals and books. In this chapter the researchers’ areas

under review includes; procurement, electronic procurement, deployment of e-procurement,

risks associated with e procurement, impact of e-procurement and keys to e-procurement

success.

2.1 Procurement

Procurement is the business management function that ensures identification, sourcing, access

and management of external resources that an organization may need to fulfill its strategic

objectives (Kidd, 2005). The Public Procurement Authority (Act 663, 2003) also defines

procurement as the process of acquiring goods, works and services, covering both acquisitions

from third parties. The process involves options, appraisal and the critical “make or buy”

decision which may result in the provision of goods and services in appropriate circumstances.

Mulch (2009), defines procurement as a “formal process by which many organizations obtain

goods and services”. Her view of procurement was epitomized by Kidd (2006) as the business

management function that ensures identification, sourcing, access and management of the

external resources that an organization needs or may need to fulfill its strategic objectives. He

further opined that procurement exists to explore supply market opportunities and to

8

implement resourcing strategies that deliver the best possible supply outcome to the

organization, its stakeholders and customers. The opinions espoused above undeniably

underscore the importance of effective procurement function in every organization and the

need to undertake strategic procurement to ensure effective and efficient utilization of available

resources.

2.2 E-Procurement

E- Procurement is strongly related to concepts such as logistics, supply chain management

(SCM) as well as e- commerce. Although some definitions are suggested to distinguish

between these concepts, the problems faced are similar .They all require financial,

transportation, legal, and communication infrastructure (Ohmae, 2000). “An e-procurement

system is a web-based client/server application that is used to replace a manual procurement

process and is said to function horizontally and vertically” (Soares-Aguiar & Palma-dos-Reis,

2008). Vertically, e-procurement systems support the demand side, supply side and inter-

organizational modules. In the past, the purchasing function was seen as a way to execute a

transaction between a buyer and a seller. Nowadays, purchasing function needs to be executed

on broader level. This means connecting different partners and helping them come up to the

mark (Shah, 2002). Podloger (2007) explains e-procurement as linking and incorporating inter

organization business processes and systems with the automation of the requisitioning, the

approval purchased order management and the accounting processes through internet-based

protocol. Again, e-procurement is the electronic management of all procurement activities. To

begin with, the buyer has to log into an application system on the computer and send

information to the supplier. This process concludes when goods are supplied and the invoice

9

issued for the goods are paid for. This includes the user’s requisition, placing order,

transportation, warehousing, and in-bound receiving processes (Presutti, 2003).Tomkins

(2000) proposed the supply chain synthesis (SCS) which he claimed to be the next step to

SCM. If SCS can be implemented, procurement activities throughout the supply chain can be

streamlined. Raisch (2001) saw the future of SCM and e- Procurement as B2B marketplaces

and stressed the importance of content management and community building. Bovet and

Martha (2000) use the term “value net” as almost the equivalent of B2B e- marketplaces.

E-Procurement Models

E-procurement models are differentiated based on the application and functions that merges

sales and purchasing business models making up the e-procurement. Parida and

Sophonthummapharn, (2008) identify three model applications of e-procurement as;

The buy-side procurement – This refers to an organization using electronic means to

purchase goods and services from contracted suppliers who also use e-procurement

systems for managing all processes relating to the purchase. This model is generally

driven by the specific requirements of the buying organizations and it is used

extensively in business to employees (B2E) applications.

Sell Side Procurement – This model is used to describe one supplier selling to a

number of buying organizations using electronic systems such as e-procurement

systems and e-commerce technology. This model is used extensively in business to

consumers (B2C). This model attracts big supplier firms that have a stronger position

in relationship with their buyers.

10

E-Marketplace and Trading Hubs – This is a combination of industry consortium and

trading exchanges. According to Jonsson (2008), an electronic marketplace or

exchange is “an internet based solution which enables purchasing and selling activities

between companies and other companies” and which “operates as a hub, around which

one or more purchasers and one or more vendors collect to exchange information and

do business” (p.417).

An electronic marketplace must take into consideration the needs and conditions of the buyers

and sellers and may mean sellers uploading product catalogue information to an exchange and

buyers searching the site to identify products to buy and complete the purchase. Exchanges

also enable identification of possible suppliers, execution of tendering and closing of business

deals. There are two classifications of electronic market place namely; the vertical and

horizontal marketplaces. A vertical marketplace co-ordinates and permits the exchange of

information and transactions between numerous sellers and buyers from the same industry. A

horizontal marketplace on the other hand focuses on co-ordination of buyers and sellers from

different industries aiming primarily at decreasing total costs for purchasing commodities,

indirect materials and services (Jonsson, 2008). The most popular e-marketplace function is

auctions (Parida & Sophonthummapharn, 2008).

Chrashekar et al (2007) defines an auction as a mechanism used to allocate a set of goods to a

set of bidders. Again they identify four types of auctions namely;

Open cry or English auction, Dutch auction, First price sealed bid auction and the second price

sealed bid auction also known as Vickrey auction.

11

2.3 Deployment of e-procurement

According to (Bialy 2008), e- Procurement is done with a software application that includes

features for supplier management and complex auctions. The new generation of e- procurement

is currently on demand or software as a service (SaaS). The e- procurement value chain

comprises indent management, e- tendering, e- auctioning, vendor management, catalogue

management and contract management. Indent management is the workflow involved in the

preparation of tenders. This part of value chain is optional, with each procuring department

defining its indenting process. As concerns works procurement, administrative approval and

technical sanction are obtained in electronic format. On the other side, in goods procurement,

indent generation activity is done online. The end result of the stage is taken as inputs for

issuing the NIT (Peter, 2012). e- Procurement (or Business- to- Business networks) is an online

system by which companies can be connected directly to suppliers for the purpose of buying

products and services at the lowest cost possible. e- Procurement essentially replaces its offline

version, called tender (Moon, 2005). The advantages and disadvantages of e- Procurement

mostly parallel the universal benefits and disadvantages of the internet. The public sector

organizations use e- Procurement for contracts to achieve benefits for example increased

efficiency and cost savings, faster and cheaper in government procurement (Archer, 2005) and

improved transparency, to reduce corruption, in procurement services. e- Procurement in the

public sector has seen rapid growth in recent years.

2.4 Risks Associated with E-Procurement

Risk is bound to occur regardless. It is therefore important to know the risks associated with e-

procurement implementation in substitution to the traditional procurement system. This would

12

inform the organization to fathom whether e-procurement would a successful strategic tool or

not.

Parida and Sophonthummapharn (2008) identify the following risks associated with

implementing e-procurement;

The organization stands the risk of losing chances to implement strategies which

improve procurement management without the need for investing in e-procurement.

Organizations’ procurement problems can be resolved without necessarily introducing

e-procurement as a solution. For instance, maverick buying in an organization can be

resolved by putting in place measures to ensure that value for money is achieved rather

than e-procurement being implemented.

The risk of investing too much in e-procurement tools that may not even deliver the

expected results and benefits. This mostly happens in instances where due diligence

and enough evaluation is not done on the implications of adopting or enhancing the e-

procurement system.

The tendency of suppliers refusing to co-operate with the use of e-procurement tools

or system is a risk associated with e-procurement. E-procurement systems implemented

need not interact only with the implementing firm’s internal information system, but

must also collaborate with external constituencies and stakeholders who are mainly the

customers and suppliers. External constituencies need to develop internal systems that

facilitate the communication through electronic means which requires technology

investment (Boadu, 2014). For e-procurement technologies to be successful, suppliers

of the entity must be accessible via the internet and must provide sufficient catalogue

13

choices to satisfy the requirements of their customers. This risk is particularly great

when key suppliers insist on the traditional paper based procurement. Reasons why

some suppliers may refuse to adapt e-procurement include lack of capacity of suppliers

to operate the system or some suppliers might just not express interest to switch to e-

procurement.

Risk in-built in the uncertainty of a company having the appropriate resources to

successfully implement an e-procurement solution which integrates with the

company’s existing information infrastructure while performing the purchasing

processes. E-procurement systems need to be compatible to the greatest possible extent

with the existing technologies.

Risk associated with determining which e-procurement technology best suits the needs

of the Company and the possible lack of a widely accepted standard which can facilitate

inter-organization e-procurement technologies. Without widely accepted standards for

coding, technical and process specifications, an e-procurement technology adoption

would be slow and would result in a failure to deliver the desired benefits.

Risks associated with the security and control of the e-procurement process itself. Here,

Organizations must be confident, for example, that unauthorized actions will not

disrupt production or other supply chain activities when committing to e-procurement

technologies. This risk is usually not a bother to large companies as they often are not

concerned with security issues related with e-procurement.

14

2.5 Impacts of E-Procurement

There are numerous effects of e-procurement in form of benefits or disadvantages. The benefits

generated by e-procurement however vary depending on the implementation context and

carrying out 100% of procurement activities online may not necessarily result in maximizing

e-procurement performance benefits (Gardenal, 2013). In many cases where e-procurement is

used, the real benefits are not identified resulting in the companies not spotting its true value

(Trkman & McCormarck, 2010), but e-procurement’s value effect when applied intelligently

is unquestionable (Aberdeen Group, 2005). Several studies have explored the impact of e-

procurement as;

2.5.1 Compliance

Compliance is one of the numerous benefits of e-procurement commonly identified by many

authors. Effective deployment of e-procurement results in a greater control over procurement

spending (less maverick buying) and better employee compliance(Moon, 2005). One key

factor about “maverick” spending in an organization is that, it always results in an element of

insecurity and uncertainty when goods or services are purchased from suppliers with whom

the organization does not have any formal relationship (Parida & Sophonthummapharn, 2008).

Compliance issues has been cited as one of the key factors behind the revival of e-procurement

after e-procurement developed a well-deserved bad reputation some years ago when the

dot.com bubble burst which resulted in backlash response from solution providers and end-

users to the hype about e-procurement’s value ( Aberdeen Group, 2005). Here, it is noted that

e-procurement drives compliance with negotiated contracts, reduces or prevents “leakage” of

15

negotiated prices and results in better spend visibility allowing firms to easily comply with

new legislations such as the Sarbanes-Oxley Act (Aberdeen Group, 2005).

Again, Aberdeen Group (2005) has noted that there is an increase in contract compliance and

reduction in “maverick spending” as effects of e-procurement deployment in their research on

ten enterprises recognized for demonstrating best practices in e-procurement. Despite the

confirmation of increased contract compliance and reduced maverick spending as benefits of

e-procurement from various studies, McCue and Roman (2012) affirms that the

implementation of e-procurement will not automatically lead to higher levels of efficiency or

contract and system compliance.

2.5.2 Efficiency

Efficiency measures the usage of resources during a process (Gardenal, 2013). E-procurement

impacts efficiency in the following ways;

Lead or Cycle Times

Effective deployment of e-procurement results in reduced cycle times (Aberdeen Group,

2005). Osei-Owusu (2013) in his study on assessing the role of e-procurement on supply chain

management in a mining area discovered reduced delivery and ordering times and efficiency

in the procurement process as some of the benefits of e-procurement to organizations. Shalle

et al (2013) included that there is a reduction in time and effort required to complete purchasing

transactions as a result of using an e-procurement software system.

Trkman and McCormark (2010) in estimating the benefits and risks of implementing e-

procurement noted a reduction in lead time in their findings of six companies studied. Gardenal

16

(2013) in proposing a practical and customizable model to measure e-procurement impacts on

organizational performance included efficiency as one of the impact dimension in his

framework. Here the indicator for efficiency was a reduced procedure lead time. He noted that

e-procurement impacts efficiency by allowing employees to achieve at least the same results

of a traditional “paper-based” procedure but with less time as a result of the automation of

certain activities.

MacManus (2002) reiterates time and money savings (efficiency) as the biggest reasons for the

rush for e-procurement implementation. She stated that forty-three percent (43%) of

respondents of a Forrester Research Inc. survey of thirty-five state and local government

purchasing directors experienced quicker response or turnaround time as a result of e-

procurement deployment.

Volume of Paper Work and Repetitious Procedures

Deployment of e-procurement has an impact on paperwork. Neef (2001) suggested less

paperwork and fewer repetitious administrative procedures as one of the potential benefits of

e-procurement.

The model to measure e-procurement impacts on organizational performance developed by

Gardenal (2013) includes dematerialization as an impact dimension using reduced paper

consumption as the metric for this impact dimension. He noted that though the volume of

consumed paper is usually not considered relevant when evaluating a procurement procedure,

an enormous volume of documents and bundles pile up in most contracting authority offices

resulting in an increase in archiving cost. He continued that e-procurement could completely

cut down paper usage as a result of the substitutive document retention in e-procurement

platforms, use of digital signatures, certified mails amongst others. He further asserts the

17

environmental and financial values of dematerialization to reduced paper usage and reduced

archiving cost respectively.

Study findings of Shalle et al (2013) on the role of e-Procurement strategy in enhancing

procurement performance in state corporations in Kenya also indicated that e-procurement

service level significantly reduces paperwork and increases productivity of clerical staff.

Parida and Sophonthummapharn (2008) also note increase in process efficiency as a result of

e-procurement deployment through reduced paperwork, fewer mistakes and reduction of

suppliers used for procurement.

Cost Savings

Most studies exploring the effects of e-procurement often cite the impact on cost reduction. E-

procurement allows firms to source for supplies online enabling them to choose suppliers who

provide the best value of service or product required. As a result unit cost, materials

procurement costs and transaction cost decrease. The advantage of the internet streamlining

and automating the procurement process results in a reduction in manpower costs,

administrative and paperwork costs and operating and inventory cost (Teo & Lai, 2009).

Operational and cost efficiency are perceived as the primary advantage of e-procurement.

Scholars emphasize on the employment of tools such as e-notice, e-auction, e-catalogue, e-

dossier, e-submission and e-signatures reduces costs and improves buyer-vendor relationships

whilst web-based purchasing offers a capability to reduce transaction costs (McCue & Roman,

2012).

E-Procurement is noted to promote competitiveness and ensure higher level of supplier

participation in tendering procedures, allow increased discounts because it makes it possible

18

to access larger markets and make use of advanced instruments for negotiations such as e-

auctions (Gardenal, 2013). Trkman and McCormark (2010) mentioned an increase in a firm’s

competitiveness as a benefit of e-procurement implementation through reduction in;

purchasing transaction cost, order fulfillment and cycle times, number of suppliers, bid prices

and administrative staff to support the transactions. Compliance is also closely linked to prices

as it enforces negotiated pricing levels. Price reductions from suppliers are one of the principal

targets in the adoption of e-procurement systems. In a study of Australian organizations,

Williams and Hardy (2007) identified that the most important factor for buyers in e-

procurement adoption was reduction of prices. The study by Tanner et al (2008) found that

reduction in purchasing price was the highest priority among twelve cited goals for e-

procurement adoption. Smart (2010) in his propositions from his industrial case study findings

on the impact of e-procurement on supply management noted that whilst successful e-

procurement projects focus on creating spend leverage with a smaller supply base, reverse

auctions are used principally as mechanisms to specifically drive price reduction. Salkute and

Manager (2013) argued that tangible cost benefits are the drivers for companies to implement

e-procurement solution and justified this assertion by the identification of tangible cost savings

by all their research respondents as the main motivator for them to implement e-procurement.

Osei-Owusu (2013) also reported less labour or clerical cost and lower transaction cost as some

of the benefits of e-procurement to organizations in Ghana in his study on role of e-

procurement on supply chain management in a mining area.

Personnel Efforts and Time to Concentrate on Core Roles

Gardenal (2013) asserts that whilst e-procurement is expected to free up more time for

contracting personnel to study more precise documentations and strategies, a driver of

19

personnel effectiveness is being able to achieve the same goals while minimizing the effort

required by the human resource. Shalle et al (2013) notes an increase in productivity of clerical

staff as a result of e-procurement implementation. E-Procurement improves procurement

personnel efficiency (Smart, 2010).

2.5.3 Communication

Developing e-commerce technologies have a considerable impact on patterns of

communication between supply chain members (McIvor et al., 2003). According to Ageshin

(2001), e-procurement leads to extensive information sharing and quicker information flows

across the supply chain. Similarly, McIvor and Humphreys (2004) reiterates that web

technology can improve the communication flow in the supply chain as it facilitates

information exchange between trading partners. Carr and Smelter (2002) found that interaction

frequency increased as IT improved ease of communication. In a study of e-procurement in

public sector organizations in the UK, Croom and Brandon-Jones (2007) found that increases

in communication between customers and suppliers assisted knowledge sharing.

2.5.4 Transparency

Internet based purchasing creates absolutely different economics characterized by price

transparency (Ageshin, 2001). Croom and Brandon-Jones (2007) concluded in their study on

the impact of e-procurement in UK public sector by attributing price reductions accrued as a

result of e-procurement implementation to increased compliance, management information,

demand aggregation, increased leverage as well as increased visibility. Osei-Owusu (2013)

further reported transparency and efficiency as benefits of e-procurement to organizations. The

20

benefits of e-procurement cited by Trkman and McCormark (2010) include collaborative and

transparency in reducing inventory levels and lead times. Salkute and Manager (2013) assert

that e-procurement increases transparency in processes.

2.6 Keys to E-Procurement Success

Today, due to innovative technology-based applications introduced in various areas of

businesses, firms must note that the simple introduction of information and communication

technologies to procurement will not on its own result in cost savings (Price Water House

Coopers, 2001) which has been identified as a benefit of e-procurement which means that

certain standards or conditions must be met or firms who desire to reap the full benefits and

impact of e-procurement must be ready to undertake and invest in certain activities.

One major key to e-procurement success within organizations is training. Pasiopoulos et al

(2013) identifies employee training as a critical aspect to guarantee a perception of ease of use

and acceptance of e-procurement as lack of knowledge creates anxiety, negative attitude and

resistance to use e-procurement technology.

Mose and Magutu (2013) conducted a study on critical success factors related to manufacturing

firms in Kenya. They concluded that the five critical success factors that have impact on e-

Procurement success are: management and employees’ commitment toward acceptance,

consistency of information technology, reliability and performance of supplier, performance

monitoring and acceptance of consumers towards e-procurement systems and support by senior

management.

21

According to Trkman and McCormark (2010), properly improving existing traditional

methods of working or business process before automating or supporting with e-procurement

solution and further continuously measuring and analyzing the processes by defining and

implementing performance measures and key performance indicators is one sure way to realize

the benefits of e-procurement.

The Aberdeen Group (2005) identified the following key strategies used by companies that

have achieved best practice status in e-procurement;

Top management support is implored to help drive the e-procurement system compliance. It

is also identified that these companies ensured sufficient funding and resources were made

available for supporting the system.

Focus of ease of use to improve end users’ acceptance of the system

Change management is not underestimated. They noted that insufficient focus on

change management has held back acceptance of many e-procurement systems.

Making sure processes are efficient before applying automated changes.

Metrics for measuring costs, process efficiency and performance of e-procurement

technologies and processes are clearly defined and reinforced. Where possible

incentives for both procurement and business units are linked to these metrics.

2.7 Empirical Literature Review on E-Procurement

A study has been conducted by Boadu (2014) on the “Impact of e-procurement on procurement

practices”, using Newmont Ghana Gold Limited – Ahafo as a case study. The study used both

qualitative and quantitative approach. Sampling techniques employed in this study included a

22

census for the first stage and purposive sampling for the second stage. Whilst the primary and

secondary sources of data were used, questionnaires and interviews were used as data

collection instruments. Relative importance index and descriptive statistics were used as data

analytical tools. She established that e-procurement was used by organizations to achieve

strategic goals and not necessarily change in trend. Also her study revealed that e-procurement

has improved communication by making information flow quicker and easier, positively

affected compliance to procurement processes whilst it goes ahead to reduce maverick

spending improve transparency into processes, improve record keeping, planning and

forecasting.

Also, Agboyi and Ackah (2015) conducted a research on “the impact of e-procurement on the

improvement of an organization”. Their study was about the role of e-procurement on supply

chain management. The purpose of their study was to investigate the role that electronic

procurement has played on supply chain management. They used descriptive and explanatory

research designs where both qualitative and quantitative methods were used to gather data from

employees of Coca Cola Company limited. Data was collected from the procurement

department, IT department, field staff/employees and the marketing department. Their study

used a sample size of 60 respondents who were purposive to the study was selected.

Questionnaires, interviews and documentary reviews were the instruments of the study and

data was analyzed using narration and tabulation formats. Their study findings revealed that

electronic procurement had not yet been given much attention in most organizations. In Ghana,

but all the same those that have embraced it such as Coca Cola company limited, it has had

23

great impacts on purchasing in organizations such as short lead time, cost reduction, electronic

payment, supplier selection, placing orders among others.

Adams Siita (2014) carried out a study to assess the potential of e-procurement in the public

sector of Ghana using the Accra Metropolis as the study area. His study focused on ascertaining

the challenges the current paper based procurement system posed, the prospects of e-

procurement in the public sector and its potential challenges if implemented. His research

involved a survey of only public entities in the Accra Metropolis targeting 50 respondents of

which 30 valid questionnaires were completed and retrieved.

The study revealed that the paper based procurement system was suffering challenges in the

following areas including process, compliance, technology/data and people. There were further

revelations that the e-procurement system is also not without challenges seeing as how

technology would be a limitation to its implementation. The recommendations that emanated

from the study were that the Public Procurement Act 2003, Act (663) be reviewed to include

elements of e-procurement so as to start incorporating aspects of technology aided procurement

practices in public sector procurement.

He further recommended that, procurement entities should endeavor to establish corporate

procurement units to promote continuity of public procurement as well as achieving value for

money and the independence of procurement entities should be upheld and freed from

government interference.

24

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter introduces and focuses attention on the various tools employed in gathering data

for the research work. It touches on and deals with the main type of research employed,

population, sample and sampling procedures, research instruments used, data collection

procedures and tools for data analysis.

3.1 Research Design

The study used qualitative and descriptive study designs. This method was used to help

carry out self-report data collection from the interested sample and allowing a thorough and

easy analysis of the respondents’ opinion. Also, the survey design adequately leads to

collection of reliable information by description of the effectiveness of e-procurement on

Coca Cola Bottling Company Limited.

3.2 The Research Population

The target population that was used for the study are the staff and management of the Coca

Cola Ghana Limited, Ghana, which has a population of about 300 members. The

departments chosen were the Procurement Department and other related departments

involved in the use of the electronic procurement system.

25

3.3 Sample and Sampling Procedure

A sample size of 23 was used. The sampling method used in selecting the respondents for

this study is purposive sampling technique, the purposive sampling technique was used

because researchers used sample elements (respondents) that are most readily available to

participate in the study and who can provide the information required to complete the study.

Seven (7) respondents were from the procurement department, three (3) were staff from the

Accounting/finance department, eight (8) respondents were from the stores/warehouse

department and Five (5) from the operations department within the organization.

3.4 The Research Instruments

The main instrument used for the collection of data was questionnaire. The designed

questionnaires were administered to obtain information from respondents of the Coca Cola

Bottling Company Limited. A set of questionnaire was administered to both the staff and

management of Coca Cola Bottling Company Limited. In designing the questionnaire, both

close-ended and open-ended questions were used. This allowed the respondents to choose

from the list of alternative questions as well as having the opportunity to express their views

on specific topics.

3.4.1 Primary Data

Primary data refers to original data collected for the research problem at hand and captured

at the point where it is generated. However, for the purpose of this research, the primary

data used were questionnaires.

26

Questionnaires

The questionnaire was used to collect information on the organization and assess the

effectiveness of e-procurement practices in the organisation. In all, both close and open

ended questions were used. This made it easier for the respondents to have a variety of

answers to choose from. The questionnaire was designed and administered to the

procurement department and other closely related departments within the organization.

3.4.2 Secondary Data

Secondary data refers to data collected and processed by others for a purpose other than the

problem at hand. However in understanding this study, the internet and the library were the

major areas where secondary data collected. Significantly, different books, journals and

articles were obtained for reference purposes.

3.5 Data Collection Procedure

Questionnaires were submitted to the procurement, operations, and other related

departments of coca cola by respondents. The collection of questionnaire was done two

weeks after questionnaire had been administered.

3.6 Tools for Data Analysis

In analysing data that were obtained from the administering of the questionnaire, MS Excel

was used to present details of data collected in the form of pictorial representations. Data was

analysed using descriptive and statistical analysis in the form of tables, charts and graphs. Each

question in the questionnaire was presented and analysed separately.

27

CHAPTER FOUR

RESULTS AND DISCUSSION

4.0 Introduction

This chapter gives a presentation on the results of the data, discussion and analysis of the results

and the major findings that were discovered from the analysis.

4.1 Data Interpretation

With regards to this research work, the following data was obtained from the field investigation

undertaken by the researchers through the administration of questionnaires at Coca-Cola

Company Limited, Ghana. The data were numerically or significantly collected from particular

departments of the organization. The data is presented in simple tallies, graphs, charts and the

corresponding response converted into percentages (%). The findings seek to assess the

effectiveness of e procurement in private organizations. The questions asked were based on

identifying the problems that end users, suppliers and buyers faced before use of e

procurement, how e-procurement is deployed in the organization, impact of e procurement on

the organization and to identify possible measures that can make e-procurement fully effective.

The organization returned the entire questionnaire given to them. The details of the

questionnaires administered are as follows:

28

Table 4. 1: Administration and receipt of questionnaires

Sample Area Expected Actual

Procurement Department 20 7

Other related departments 20 16

Total 40 23

Source: Field Survey, 2018.

Out of the Forty (40) questionnaires administered, twenty-three (23) of them were retrieved

which represents 58% of the total questionnaire administered. 17 questionnaires were not

answered, which represents 42% of the total questionnaires administered. This high response

rate authenticates the study and makes its findings reliable as such high response rate was out

of the entire population. The organization returned the entire questionnaire given to them. The

details of the questionnaires administered are illustrated in tables, graphs and pie charts below.

29

Figure 4. 1: Procurement's position within the organization

Source: Field survey, 2018.

Figure 4.1 indicates that, 20 respondents agrees that the procurement function falls within the

middle management level which represents 87%, 3 respondents also ticked that procurement

falls within the top management level which also represents 13% whiles no respondents

representing 0% also approved that the procurement department falls within the lower

management level.

13%

87%

Top management level Middle management level Lower management level

30

Figure 4. 2: Department in which respondents work


Figure 4.2 depicts that, 7 of the respondents are from the procurement department which

represents 30%, 3 respondents from the Accounting department which represents 13% of our

respondents, 8 respondents representing 35% from the stores department whiles 5 respondents

representing 22% are from the operations department of the organization. Most respondents

for this study were from the stores and procurement department respectively.

30%

13%

35%

22%

0P R O C U E M E N T A C C O U N T I N G S T O R E S O P E R A T I O N S O T H E R

Procuement Accounting

Stores Operations

Other

31

Figure 4. 3: Procurement system employed by Coca Cola


Figure 4.3 indicates the findings on procurement system employed by Coca Cola Company

Limited. 11 out of the 23 respondents said that the organization adopts the centralized

procurement which represents 48%, 5 respondents also said that the organization adopts the

decentralization system which also represents 22%. 6 respondents representing 26% also

indicated that the organization employs both centralization and decentralization systems. A

respondent left this question unanswered representing 4% of respondents.

48%

22%

26%

4%

Centralized Decentralized Both Unanswered

32

Figure 4. 4: Procurement areas where Coca-Cola is actively involved


From figure 4.4, it reveals that 19 respondents ticked e-sourcing as the most prominent

activities of procurement that the organization is actively involved representing 31% of the

responses received. Again, 19 respondents also ticked e-tendering as the most prominent e-

procurement activity representing 31% 8 respondents were also of the view that, e-ordering

was the most active e-procurement activity which the organization uses representing 13% of

the responses received. 4 respondents however said that, the organization’s active e-

procurement activity was e- contract management representing 7% of the responses received.

9 respondents representing 15% of the respondents indicated that e-market was the active e-

procurement activity of the organization. 2 respondents representing 3% claimed that e-

auction was an active e-procurement activity used within the organization. Here, it is clear that

0

2

4

6

8

10

12

14

16

18

20

E- Sourcing E- Tendering E- Ordering E- ContractManagement

E- Markets E- Autions

31% 31%

15%

7%

17%

3%

E- Sourcing E-Tendering E- Ordering E- Contract Management E- Markets E- Auctions

33

the most active e-procurement activities used by the organization are e sourcing and e-

tendering.

Figure 4. 5: Effect of e-procurement on volume of paper work


As can be seen from figure 4.5, 9 respondents were in support of the view that e-procurement

has greatly reduced the volume of paper work representing 39% of the total respondents. Also,

14 respondents were of the view of the view that, e-procurement has reduced the volume of

paper work within the organization representing 61% of the total respondents.

39%

61%

0 0 00

2

4

6

8

10

12

14

16

Greatly Reduced Reduced No Effect at all Increased Greatly Increased

Greatly Reduced Reduced No effect at all Increased Greatly Increased

34

Figure 4. 6: Effect of e- procurement on repetition of administrative procedures


Figure 4.6 indicates that, 6 respondents constituting 26% of the total respondents were of the

view that, e-procurement has greatly reduced the repetition of administrative procedures within

the organization. 15 respondents constituting 65% of total respondents support the view that

e-procurement has reduced the repetition of administrative procedures within the organization.

Also, 2 respondents constituting 9% of the total respondents were of the view that, there has

been no effect of e-procurement on repetition of administrative procedures after e-procurement

being implemented.

26%

65%

9%

0 0G R E A T L Y R E D U C E D R E D U C E D N O E F F E C T A T A L L I N C R E A S E D G R E A T L Y

I N C R E A S E D


35

Figure 4. 7: Mistakes which would have occurred in the old paper base system


As indicated in figure 4.7, 8 respondents were in support of the view that mistakes which could

have occurred has greatly reduced after e-procurement being implemented representing 35%

of the respondents. 14 respondents representing 61% were also of the view that mistakes have

reduced after e-procurement being implemented. A respondent representing 4% of the

respondents on the other hand said there has not been any effect on mistakes that occur even

after the implementation of e-procurement within the organization.

35%

61%

4%

0 00

2

4

6

8

10

12

14

16



36

Figure 4. 8: Effect of e-procurement on buyers' efforts to achieve same results as

compared to paper-based system


Figure 4.8 above shows that a respondent who represents 4% of respondents affirms that

buyers’ effort to achieve same results as compared to the paper based system has greatly

reduced. Again 12 respondents were of the view that efforts of buyers have reduced as

compared to the paper based system representing 53%. Also 1 respondent stated that e

procurement has had no effect on the buyers’ effort within the organization. 9 respondents on

the other hand affirm that buyers’ effort has increased after the implementation of e-

procurement within the firm representing 39%.

4%

53%

4%

39%

00

2

4

6

8

10

12

14



37

Figure 4. 9: Effects of E-procurement on Buyer's time to concentrate on their core

activities


Figure 4.9 above shows that 2 respondents are of the view that buyers’ time to concentrate on

their core activities are greatly reduced representing 9%. 8 respondents who represent 35% are

of the view that buyers’ time to concentrate on core activities has been reduced. A respondent

said that there is no effect on buyers’ time to concentrate on their core activities. 11 respondents

who represent 48% said that the buyers’ time to concentrate on core activities is increased.

Also a respondent representing 4% affirms that buyers’ time to concentrate on their core

activities has greatly increased.

9%

35%

4%

48%

4%

0

2

4

6

8

10

12



38

Figure 4. 10: Effect of e-procurement on the ease of retrieval of documents


Figure 4.10 illustrates that 1 respondent was of the view that the ease in retrieval of documents

has greatly increased representing 9%. 10 respondents who represent 44% were of the view

that ease in the retrieval of documents been reduced. 6 respondents representing 26% affirmed

that there is an increase on retrieval of documents as compared to the paper-based system.

Again, 6 respondents who represent 26% supported the view that ease in retrieval of documents

has greatly increased.

4%

44%

0%26%

26%


39

Figure 4. 11: Effects of e-procurement on time spent in procuring

Source: Field Survey 2018.

The above diagram depicts that 9 respondents said that e-procurement has greatly reduced the

time spent on procuring within the organization which represents 39% of the total respondents,

11 other respondents specified that time spent on procuring has reduced representing 48% of

the total respondents. One respondent was of the view that there was no effect of e-procurement

on the time spent to procure representing 4% of the total respondents. Also, 2 respondents said

that time spent on procurement has increased after e-procurement being introduced,

representing 9% of the total respondents.

39%

48%

4%

9%

0

2

4

6

8

10

12



40

Figure 4. 12: Results of e-procurement processes in planning for services required under

procurement as compared to paper based system

Source: Field Survey, 2018

Figure 4.12 establishes that, 10 respondents representing 43% are of the view that e-

procurement ensures that planning for services required is done within a much shorter time as

compared to the paper based system. 11 respondents who represent 49% of the respondents

support that planning for service required under electronic procurement is done within a shorter

time than the paper based system. A respondent representing 4% said that, there has been no

effect on time in planning for service required. Also, another respondent representing 4% said

that planning for services required is done within a longer time as compared to the paper based

system.

Within a much shorter time 44%

Within a shorter time48%

No effect on time4%

Within a longer time0%

Within a much longer time0%

Unanswered4%

Within a much shorter time Within a shorter time No effect on time

Within a longer time Within a much longer time Unanswered

41

Figure 4. 13: Effects of e-procurement on completing request for contracts


In completing requests for contracts, 9 respondents who constitute 39% of respondents said e-

procurement had allowed requests for contracts to be completed within a much shorter time.

13 respondents constituting 57% said that completion of request for contract is done within a

shorter time and a respondent constituting 4% left this question unanswered.

39%

57%

0 0 0

4%

0

2

4

6

8

10

12

14

Within a muchshorter time

Within a shortertime

No effect on time Within a longertime

Within a muchlonger time

Unanswered

Within a much shorter time within a shorter time No effect on time


42

Figure 4. 14: Effects of e procurement on getting approvals compared to paper-based

system


8 respondents representing 35% support the view that under e-procurement, getting approvals

takes a much shorter time. Also, 12 respondents representing 52% affirmed that getting

approvals was done within a shorter time. 2 respondents constituting 9% said there was no

effect on time at all in getting approvals. A respondent representing 4% left the question

unanswered.

35%

52%

9%

0 0

4%

0

2

4

6

8

10

12

14





Unanswered



43

Figure 4. 15: Effects of e-procurement on processing invoice for payment


Figure 4.15 depicts the effect of e procurement on processing of invoices for payments to be

made. 5 respondents representing 22% were of the view that processing of invoices for

payment was done in a much shorter time. 13 respondents representing 56% acknowledged

that e-procurement had made the period of processing invoices for payment shorter. Also, 2

respondents constituting 9% were of the view that there has been no effect on the period used

for processing invoices for payment after the introduction of e-procurement. However, 3

respondents left this question unanswered representing 13% of the respondents.

22%

56%

9%

0 0

13%

0

2

4

6

8

10

12

14





Unanswered



44

Figure 4. 16: Effects of e procurement on buyer's compliance in Coca-Cola's

procurement processes


Figure 4.16 shows the effect of e -procurement on buyers’ compliance. 3 respondents

representing 14% were of the view that e-procurement on buyers’ compliance was very good.

13 respondents representing 59% held that the effect of e-procurement on buyers’ compliance

was good. Again, 4 respondents who made up 18% were of the view that buyers’ compliance

on e-procurement was normal. However, 2 respondents representing 9% left the question

unanswered.

14%

59%

18%

0%0%9%

Very Good Good Normal Bad Very Bad Unanswered

45

Figure 4. 17: Organizing of e-procurement workshop for suppliers and employees


Figure 4.17 show that, 20 respondents affirm that e-procurement training and workshops are

being organized for employees and suppliers representing 87% of the total respondents. On the

other hand, 2 respondents held that e-procurement training was not organized for employees

and suppliers representing 9% of the total response received. However, a respondent left this

question unanswered representing 4% of total respondents.

87%

9%4%

Yes No Unanswered

46

Table 4. 2: How training helps employees operationalize e-procurement

Response Number of

Response(s)

Percentage

(%)

Reduced Errors and Saved Time 3 14

Easy to use due to better understanding and

technical know-how of the electronic system

13 56

Unanswered 7 30

Total 23 100


Table 4.2 sought to ascertain how training helps employees operationalize e-procurement. Out

of the 23 responses that emanated from the study, 3 of the respondents who constitute 14%

response rate confirmed that e-procurement has reduced errors and saved time. Another group

of 13 respondents who forms 56% of the total response rate are of the view that e-procurement

is easy to use when one has better understanding and technical knowhow of the electronic

system. Finally, 7 respondents who made up 30% of the total respondents left the question

unanswered.

47

Table 4. 3: Challenges in contract processing contracts before e-procurement

implementation in Coca Cola

Response Number of

Response(s)

Percentage

(%)

Delay/Slow down Processes 8 35

Too much volume of paperwork 9 39

Difficulty in retrieving documents 3 13

Unanswered 3 13

Total 23 100


Table 4.3 shows the challenges faced by Coca Cola in contract processing prior to the

implementation of e-procurement. Out of the 23 respondents, 8 respondents representing 35%

were of the view that, there was delay in processing contracts with the traditional procurement

system causing the entire process to be slow. Again, 9 respondents representing 39% stated

that, too much volume of paper work was a challenge in contract processing. Also, 3

respondents representing 13% attributed the difficulty in retrieving contract documents as

challenging. However, 3 respondents representing 13% left the question unanswered.

48

Table 4. 4: Challenges in contract development and maintenance before e-procurement

implementation in Coca Cola

Response Number of

Response(s)

Percentage

(%)

Difficulty in identifying and tracing contract

documents

3 13

Too much time spent on processes 6 26

Delay in modification of contracts when the need

arises

2 9

Inability to assess suppliers and do proper

evaluation

2 9

Large volume of paperwork 2 9

Unanswered 8 34

Total 23 100


Table 4.4 shows the challenges faced by Coca Cola in contract development and maintenance

prior to the implementation of e-procurement. Out of the 23 total responses, 3 of the

respondents representing 13% were of the view that, there was difficulty in identifying and

tracing contract documents. Again, 6 respondents representing 26% stated that, too much spent

on the process was a challenge in contract development and processing. Also, 2 respondents

representing 9% attributed the inability to assess suppliers and do proper evaluation as a

challenge affecting transparency in the process. Finally, 2 respondents representing 9% stated

that large volume of paper work was a challenge. However, 8 respondents representing 34%

left the question unanswered.

49

Table 4. 5: Has e-procurement resolved existed procurement problems


Table 4.5 explicates the views of respondents on whether e-procurement has resolved problems

which existed in procuring prior to its implementation. 16 out of the 23 respondents

constituting 70% supported the statement that e-procurement implementation in Coca Cola has

resolved problems which it was implemented to resolve. Again, 3 respondents constituting

13% of the total respondents were of the view that e-procurement has partially resolved

problems for which it was implemented. However, 4 respondents representing 17% of the total

respondents left the question unanswered.

Response Number of

Response(s)

Percentage

(%)

Yes 16 70

No - -

Partially 3 13

Unanswered 4 17

Total 23 100

50

Table 4. 6: Measures to improve e-procurement effectiveness in Coca-Cola

Response Number of

Response(s)

Percentage

(%)

Suppliers should be allowed to operate on the e-

procurement system

1 4

Management should ensure constant training of

employees to get them abreast with the e-

procurement system

11 49

E-procurement system should be more user-friendly 1 4

There should be fast flow of information 2 9

Management should employ experts in the e-

procurement field to assist

1 4

Unanswered 7 30

Total 23 100


Table 4.6 suggests how e-procurement can be improved to become effective at Coca-Cola. 11

respondents who represent 49% of the total respondents asserted that management should

constantly train employees in order to grab a knack on the use of e-procurement systems. 1

respondent making up 4% of the total respondents urged that e-procurement should be more

user- friendly. Again, 2 respondents who make up 9% asserted that fast flow of information

can make e-procurement more effective. Also, a respondent representing 4% indicated that the

management of Coca Cola should consider employing e-procurement experts to boost the

effectiveness of their activities. However, 7 respondents representing 30% of the total

respondents left the question unanswered.

51

Figure 4. 18: Has e-procurement affected Coca-Cola in a positive way?


As shown from figure 4.18, these are responses to whether e-procurement has affected Coca

Cola in a positive way. 19 respondents representing 83% of the total respondents supported

the view that e-procurement has affected Coca Cola in a positive way. However, 4 respondents

representing 17% of the total respondents left this question unanswered. This establishes that

e-procurement has positively impacted Coca Cola as an organization. It is obvious e-

procurement is not deployed in Coca Cola because it is simply the new trend in procurement

but rather a tactical tool purposely used to support its strategic goals.

Yes…

Unanswered17%

Yes No Unanswered

52

Table 4. 7: Positive effects of e-procurement on Coca-Cola Company Limited

Response Number of

Response(s)

Percentage

(%)

E-procurement has enhanced process efficiency

(easier and faster)

10 43

E-procurement has reduced cost incurred in

procuring.

5 22

E-procurement implementation has improved the

skills and development of employees

2 9

E-procurement aids in maintaining accurate database

and processes

2 9

E-procurement has caused stress minimization

amongst employees

1 4

Unanswered 3 13

Total 23 100


As illustrated in Table 4.7, 10 respondents representing 43% of the respondents stated that e-

procurement has enhanced process efficiency. Also, 5 respondents representing 22% were of

the view that e-procurement has minimized cost as well as paper work. 2 respondents

representing 9% indicated that e-procurement has enhanced the development and sharpened

the skills of employees. Again, 2 respondents representing 9% were of the view that e-

procurement has maintained accurate data base and processes. A respondent stated that e-

procurement has reduced stress of employees in carrying out procurement activities. However,

3 respondents left this question unanswered.

53

4.2 Discussion of Findings.

This section entails the discussion of findings is based on the various research objectives and

questions of this research. The section is divided into four sections where each section

discusses the results obtained under every single research objective.

4.2.1 Problems with procurement prior to the implementation of e-procurement

The researchers wanted to ascertain the problems which existed in procurement processes prior

to the implementation of e-procurement in Coca-Cola Ghana limited.

Contract Processing

The findings established that delay in process, large volume of paper work and difficulty in

retrieval of documents were some problems with respect to contract processing prior to the

implementation of electronic procurement. Electronic procurement is seen by Coca-Cola as a

problem solving tool since theoretical and empirical literature on e-procurement has identified

electronic procurement to be attached with benefits such as efficiency (Gardenal, 2013),

reduction or elimination of paper work (Neef, 2001; Boadu, 2014) and using minimum efforts

to achieve same results (Smart, 2010; Gardenal, 2013) among others.

Contract Development and Maintenance

The study findings of this work revealed that difficulty in identifying and tracing contract

documents, large volume of paperwork and time spent on the contract process, difficulty in

modifying a contract when the need arises as well as difficulty in assessing and evaluating

suppliers properly to ensure transparency were some challenges in developing and maintaining

contracts at Coca-Cola prior to the implementation of electronic procurement.

54

4.2.2 E-procurement deployment in Coca-Cola and its perceived impacts

Procurement’s position within Coca-Cola

The findings of this study revealed that the position of procurement on the organizational

structure of the organization falls within the middle management level. This was significantly

shown in the response rate of 87% as compared to Top management level with 13% response

rate.

Procurement system employed by Coca-Cola

The researchers wanted ascertain the procurement system employed by Coca-Cola. The

findings surfaced that procurement is a centralized function within the organization.

Procurement areas where Coca-Cola is actively involved

Coca-Cola is actively involved in various e-procurement activities. The findings bear that the

most dominating e-procurement functions in Coca-Cola are e-sourcing and e-tendering.

However other areas of e-procurement such as e-ordering, e-contract management, e-markets

and e-auctions are as well deployed.

4.2.3 Effects of e-procurement on Coca-Cola’s general performance

Volume of paperwork

The findings from the study revealed the impact of e-procurement with regards to volume of

work of which two extremes of responses were obtained. One extreme which represents 39%

of responses indicated that e-procurement has reduced volume of paperwork greatly while the

other which constitutes 61% indicated that the volume of paper work has been reduced. A

simple implication of these responses is that, the burden to handle and study voluminous

documents has been eradicated and as a result, time efficiency is enhanced with regards to

55

procurement processes. This goes ahead to augment the view of Neef (2001), on e-

procurement’s potentials of reducing paperwork. Again, in study findings of Shalle et al (2013)

on, “The role of e-procurement strategy in enhancing procurement performance in state

corporations in Kenya” pointed out the significant reduction in paperwork and increased

productivity of clerical staff due to e-procurement implementation.

Repetition of administrative procedures

There has been a significant reduction in the repetition of administrative procedures after the

implementation of e-procurement at Coca-Cola Ghana. Neef (2001) and Gardenal (2013)

conclude that one benefit of e-procurement has got to do with the reduction in repetitive

processes. Boadu (2014) conducted a study on the impact of e-procurement practice using

Newmont Ghana Gold limited as a case study. She also revealed in her study that e-

procurement positively impact efficiency with regards to volume of paperwork and

administrative procedures as well efforts required to complete a similar task.

Mistakes which would have occurred in the old paper base system

It is established from the study findings that mistakes which were common under the paper

base procurement system of Coca-Cola Ghana such as minor typing errors, have been reduced

upon the inception of e-procurement. Parida and Sophonthummapharn (2008) also notes an

increase in process efficiency as a result of e-procurement deployment which includes reduced

paperwork, fewer mistakes.

56

Buyers’ efforts to achieve same results as compared to the paper base system.

The launch of e-procurement at Coca-Cola Ghana has helped to reduce the efforts required by

buyers to accomplish same tasks as with the traditional procurement system.

Gardenal (2013) sees e-procurement to be a driver of personnel effectiveness which enables

individuals to achieve the same goals while minimizing the efforts required.

Concentration on core activities

E- Procurement implementation at Coca-Cola Ghana has improved buyers’ time to concentrate

on core activities. E-procurement when used in organizations is expected to free up more time

for staff to study more precise documents, make them effective and minimize efforts required

on those duties (Smart 2010; Gardenal 2013; Shalle et al 2013).

Ease of retrieval of documents

Per the findings of this study, there has been great ease with regards to retrieving contract

documents as a result of e-procurement use at Coca-Cola Company Limited. This as well

contributes to the efficiency of the procurement processes within the firm. Boadu (2014), in

her study she emphasized that ease in retrieving contract details is an efficiency role of e-

procurement.

Impact of e-procurement on time

E-procurement has tremendously reduced the procuring time of Coca-Cola. The results of the

study established that there has been a great change with regards to the time buyers would need

to procure. Osei-Owusu (2013) in his study on, “Assessing the role of e-procurement on supply

chain in the mining industry” established that e-procurement reduced delivery and ordering

times as well as improving efficiency in the procurement process. Other study findings of

57

Trkman and McCormark (2010) in, “Estimating the benefits and risks of implementing e-

procurement” noted a reduction in the lead-time as an impact of e-procurement.

Again further findings revealed that for buyers in Coca Cola Ghana to achieve same results as

compared to the traditional system with respect to planning for services, completing requests

for contracts and processing invoices for payment were accomplished within a short time as

compared to the traditional paper base system. MacManus (2002) reaffirms time and money

savings as the biggest reasons for the rush for e-procurement implementation. In her study, she

highlighted that 43% of respondents of a Foresterr Research Incorporation survey involving

thirty-five state and local government purchasing directors discovered quicker response time

as a result of e-procurement deployment.

Buyers Compliance in Coca Cola’s procurement processes

The findings of the study have shown that e-procurement’s impact on buyers’ compliance to

Coca Cola’s procurement processes is good. This implies further that, e-procurement

deployment facilitates transparency, competition and fairness at Coca Cola Ghana.

Compliance is one benefit of e-procurement commonly identified by many authors. The

Aberdeen Group (2005) cited compliance as a key reason why e-procurement was revived after

it had developed a well-deserved bad reputation some years ago. It was noted that e

procurement drives compliance with negotiated contracts, reduces or prevents leakage of

negotiated prices and results in better spend visibility, allowing firms to comply with new

legislations such as the Sarbanes-Oxley Act.

Positive effects of e-procurement on Coca-Cola

The finding of this study also revealed that e-procurement has had positive impact on Coca-

Cola. Revelations from the study show that there has been an enhancement of process

58

efficiency, reduction in costs incurred in procuring, improvement in skills and development of

Coca-Cola employees, improvement in maintaining accurate database and processes as well as

stress minimization among Coca-Cola employees as a result of the implementation of

electronic procurement. This asserts to the compliance and efficiency benefits of e-

procurement opined by Trkman & Coleman (2010). These benefits of electronic procurement

however vary depending on the implementation context and also carrying out 100% of

procurement activities online may not necessarily result in maximizing e-procurement

performance benefits (Gardenal, 2013). Even though Coca-Cola employees see e-procurement

to have positive impacts on the organization, Sophonthummapharn (2008) argues that

organizations which implement e-procurement stands the risk of losing opportunities to

implement strategies which improve procurement management without the need for investing

in e-procurement because simple improvements in the traditional procurement can result in

same benefits without necessarily implementing e-procurement.

4.2.4 Making e-procurement fully effective

Organizing training and workshops for suppliers and employees

It was established in the study findings that Coca-Cola organizes training and workshop with

respect to electronic procurement for its employees as well as buyers.

Training of employees and its impact on operations in Coca-Cola

The study affirmed further established that training has developed employees in their various

roles and has also improved the technical know-how of employees in handling e-procurement

activities. This has also caused a significant reduction in time spent on activities by these

trained employees.

59

Has e-procurement resolved challenges in procurement?

The study findings of this research has made it clear that even though e-procurement has been

able to solve most of the challenges in procurement, not all of these problems have been

resolved. These affirm some risks which Parida and Sophonthummapharn (2008) identified to

be associated with implementing e-procurement. These risks are mentioned as losing

opportunities to implement strategies which improve procurement management without the

need for investing in e-procurement and also lack of willingness on the part of users to accept

and comply with the system. He argues that most of the benefits known to be achieved from

e-procurement could equally be attained by simple improvements in existing procurement

practices.

Improving e-procurement effectiveness in Coca-Cola

The findings of this study suggested some possible measures that the management of Coca-

Cola can adopt in making e-procurement fully effective. Some suggestions were based on

engaging suppliers on the e-procurement software. This might make sharing of information

more swift as well as minimizing time spent. Again, some respondents suggested that the e-

procurement software should be user friendly. Others were of the view that management

should consider engaging e-procurement experts since it can improve e-procurement in Coca-

Cola. There is the need for management to ensure constant training of employees so as to get

them abreast with the e-procurement system as well as current trends in procurement.

60

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter provides the summary of findings drawn from the analysis of data, conclusion on

the study and recommendations to the management of Coca Cola Company Limited based on

the data gathered.

5.1 Summary of Findings

The study focused on assessing the effectiveness of e-procurement activities in private

organizations. The study’s objectives were to identify problems that end-users and buyers

faced before the inception e-procurement, assess the deployment of e procurement and its

impact on Coca Cola Ghana, ascertain the effects of e procurement on the general performance

of the organization and lastly develop possible measures and alternatives that can make e-

procurement fully effective.

From the study findings, the responses gathered have proved that Coca-Cola deploys e-

tendering and e-sourcing as the major procurement activities undertaken electronically. The

study further confirmed that e-procurement has improved record keeping, communication,

compliance to procurement processes, and efficiency(in terms of reduced; lead times, volume

of paperwork, efforts required to complete similar task as old paper-based system and

mistakes) within the organization.

61

The study findings likewise confirmed that e-procurement does not automatically result in

reduced prices paid for services intrinsically but instead, constant training of buyers and other

end users of the e-procurement system may significantly enhance efficiency.

Despite the aforementioned positive effects that accompany the implementation of electronic

procurement, the study findings however revealed that, Coca Cola Company Limited, Ghana

does not actively engage suppliers in e-procurement training. Furthermore, the study also

revealed some suggestions from respondents in respect to possible ways to curb problems of

e-procurement activities within the organization. Respondents were of the view that the

organization should consider employing e-procurement experts, e-procurement software

should have a user-friendly interface and having a reliable backup system to enable the

procurement unit of the organization carry out its duties without difficulties as well as ensuring

that the overall objective of the organization is achieved.

5.2 Conclusion

The main objective for this study was to critically assess the effectiveness of e-procurement in

the private sector of Ghana, using Coca Cola Company Limited, Ghana, as a case study. The

conduct of procurement activities is a very important aspect in the running of organizations.

This study therefore, concludes that Coca Cola Company Limited, Ghana has recognized the

important role played by procurement in relation to ensuring effectiveness and efficiency in

achieving the organizations set goals. Also, e-procurement in Coca Cola has positively

impacted efficiency through a reduction in; time spent on procuring, volume of paper work,

administrative procedures, mistakes, level of effort of staff whilst increasing employee time to

concentrate on their core technical roles.

62

Coca Cola’s approach to e-procurement followed a strategic intent to resolve some identified

challenges of their traditional procurement practice. These challenges as identified by the

organization included difficulty in modifying contracts, poor compliance, and difficulty in

tracing contract documents, voluminous paper work and delay in contract administration

processes across all activities.

From the discussions, it is obvious e-procurement is not deployed in organizations because it

is simply the new trend in procurement but rather a tool which is used particularly to support

strategic goals of a function which in the case of Coca-Cola Company Limited, was to resolve

the identified challenges of the traditional or paper based procurement system.

5.3 Recommendations

Findings of this study revealed that, Coca Cola Company continue to face some challenges

associated with procurement even after implementation of electronic procurement. Some

identified challenges included; inadequate e-procurement experts, e-procurement software not

being user-friendly, an unreliable backup system and frequently extricating suppliers during e-

procurement trainings.

In making e-procurement fully operational and effective in Coca-Cola, the researchers

recommend to the management of Coca Cola Ghana to consider supplier and employee training

as a major key to e-procurement success. Management should actively provide support which

would contribute to the acceptance of the system through its influence on different ways such

as employees’ involvement and customized training. E-procurement related training should

include suppliers since they play a very significant role in the success of the e-procurement

system as Pasiopoulos et al (2013) has established that training is a critical aspect to guarantee

63

a perception of ease of use and acceptance of e-procurement as lack of knowledge creates

anxiety, negative attitude and resistance to use e-procurement technology. Again, management

of Coca-Cola should consider using e-procurement software that has the ability to ensure a

reliable backup system installed to support the e-procurement system.

Also, the Aberdeen Group (2005) suggests that the following key strategies can be used by the

management of companies that have achieved best practice status in e-procurement. In doing

this, top management of Coca Cola should support the initiative to help drive the e-

procurement system compliance. Management needs to ensure;

Focus of ease of use to improve end users’ acceptance of the system

Change management is not underestimated. They noted that insufficient focus on change

management has held back acceptance of many e-procurement systems.

Making sure processes are efficient before applying automated changes.

Metrics for measuring costs, process efficiency and performance of e-procurement

technologies and processes are clearly defined and reinforced. Where possible incentives

for both procurement and business units are linked to these metrics.

64

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APPENDIX

QUESTIONNAIRE

GHANA INSTITUTE OF MANAGEMENT AND PUBLIC ADMINISTRATION

RESEARCH QUESTIONNAIRE

ASSESSING THE EFFECTIVENESS OF E-PROCUREMENT IN PRIVATE

ORGANIZATIONS; A CASE STUDY OF COCA COLA GHANA LIMITED

Introduction: You are kindly requested to complete this questionnaire which is to collect data

for academic purposes only. All information would be kept confidential. The study is to assess

the effectiveness of e procurement in Coca Cola Ghana Limited.

PART I

Instruction: Please tick (√) in the appropriate box. Thank you.

1. What is procurement position within your organisational structure?

a. Top management level

b. Middle management level

c. Lower management level

2. Which department do you work?

a) Procurement

b) Accounting

c) Stores

d) Operations

e) Other………………………………………………..

3. What type of procurement system do you employ?

a) Centralized b) Decentralized c) Both

70

4. Which areas of e procurement is your organization actively involved in

E procurement activity Tick as many as possible

E- sourcing

E-tendering

E-ordering

E-contract management

E-markets

E-autions

PART II

Effects of using electronic

processes

Greatly

reduced

Reduced No effect

at all

increased Greatly

Increased

5. Volume of Paperwork 1 2 3 4 5

6. Repetition of administrative

procedures

1 2 3 4 5

7. Mistakes which could have

occurred in the old paper-

based system

1 2 3 4 5

8. Buyer efforts to achieve

same results as old paper-

based system

1 2 3 4 5

9. Buyers time to concentrate

on their core activities

1 2 3 4 5

10. Ease in retrieval of

Documents

1 2 3 4 5

11. Time spent on procuring 1 2 3 4 5

71

Instruction: Please indicate by encircling the extent to which you perceive the following

Effects of using electronic processes for procurement on the following ;

Use of e-procurement allows End-Users to achieve the same results as the old paper-based

system in the following;

Same Results of

e-procurement

processes as

compared to Old

Paper-Based

System

Within a

much

shorter time

Within a

Shorter time

No effect on

time at all

Within a

longer time

Within a

much longer

time

12. Planning for

Services

required

1 2 3 4 5

13. Completing

request for

contracts

1 2 3 4 5

14. Getting

approvals

1 2 3 4 5

15. Processing

invoices for

payments

1 2 3 4 5

16. What is the effect of e procurement on Buyer’s compliance with Coca Cola’s procurement

processes?

a) Very Good

b) Good

c) Normal

d) Bad

e) Very Bad

72

17. Does the company organize e-procurement workshops/training for its employees and

suppliers?

Yes No

18. If yes, how often is training done?

a. Monthly

b. Quarterly

c. Yearly

d. State if any…………………………………………………………….

19. If yes, how does the training help employees to operationalize e procurement?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

……………………………………………………………………………………

20. What challenges did you face in processing contract request prior to the implementation of

e procurement in your organization?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

……………………………………………………………………………………

21. What challenges did you have in contract development and maintenance (preparation of

contract documents and forwarding to contractors) prior to e procurement implementation?

………………………………………………………………………………………

………………………………………………………………………………..……

………………………………………………………………………………..……

22. Has the implementation of e procurement resolved these problems?

a) Yes b) No c) Partially

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23. If No or Partially, Please indicate the problems which remain unsolved

………………………………………………………………………………………

………………………………………………………………………………..……

………………………………………………………………………………..……

24. In your view, what measures can be put in place to make electronic procurement effective

in Coca Cola Ghana?

………………………………………………………………………………………

………………………………………………………………………………..……

………………………………………………………………………………..……

25. Apart from the challenges faced in the deployment of e procurement department, has e

procurement affected the organisation in any positive way?

Yes No

26. If yes, state any positive effect that procurement has had on the organisation as a whole.

…………………………………………………………………………………………

…………………………………………………………………………………………

…………………………………………………………………………………………

Thank You.

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