A Comparative Analysis of Traditional Procurement Methods and E-Procurement in Nigeria: A Case Study of Lafarge Africa in Benue State
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Background of the Study
Procurement is a critical function in organizational operations, ensuring the acquisition of goods and services needed for production. Traditional procurement methods, which rely on manual processes, are often slow and prone to errors. E-procurement, facilitated by digital platforms, offers advantages such as transparency, speed, and cost savings (Adekunle & Afolabi, 2023).
Lafarge Africa, a leading cement manufacturing company in Nigeria, operates in a competitive industry where procurement efficiency is crucial. In Benue State, where operational challenges such as supplier reliability and infrastructural deficits exist, comparing traditional procurement with e-procurement is essential for optimizing supply chain performance (Olawale & Bello, 2024).
Statement of the Problem
Traditional procurement methods at Lafarge Africa often result in delays, inefficiencies, and higher costs. The adoption of e-procurement has been limited due to concerns over technology adoption and training. This study provides a comparative analysis of the two approaches to determine the most effective procurement strategy for Lafarge Africa in Benue State (Suleiman & Hassan, 2023).
Objectives of the Study
- To assess the efficiency of traditional procurement methods at Lafarge Africa.
- To evaluate the benefits and challenges of e-procurement in Lafarge Africa’s operations.
- To recommend the optimal procurement strategy for Lafarge Africa in Benue State.
Research Questions
- How efficient are traditional procurement methods at Lafarge Africa?
- What are the benefits and challenges of e-procurement in Lafarge Africa’s operations?
- What is the optimal procurement strategy for Lafarge Africa in Benue State?
Research Hypotheses
- H0: Traditional procurement methods are as efficient as e-procurement at Lafarge Africa.
- H0: E-procurement does not significantly improve operational efficiency in Lafarge Africa’s procurement processes.
- H0: There is no significant difference in cost savings between traditional procurement and e-procurement methods.
Scope and Limitations of the Study
The study focuses on procurement methods at Lafarge Africa in Benue State, comparing traditional and e-procurement approaches. Limitations include technology adoption barriers and variability in supplier performance.
Definitions of Terms
- Traditional Procurement: Manual processes for acquiring goods and services.
- E-Procurement: Digital platforms facilitating procurement processes.
- Supply Chain Performance: The effectiveness of processes involved in acquiring, producing, and delivering goods.
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