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An evaluation of e-procurement adoption in the manufacturing sector: A case study of Nigerian Bottling Company in Yobe State

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Background of the Study

E-procurement refers to the use of electronic systems and tools to conduct purchasing and procurement activities. It involves the automation of processes such as ordering, invoicing, payment, and supplier management, all facilitated through digital platforms. E-procurement offers numerous benefits, including cost reduction, improved transparency, faster processing times, and better supplier relationships. These advantages make it a critical tool for enhancing the efficiency of procurement operations, particularly in the manufacturing sector.

The Nigerian Bottling Company (NBC), one of the leading manufacturers in Nigeria, operates in an industry that requires continuous supply chain optimization to meet demand and maintain production schedules. In Yobe State, where NBC has distribution centers, the company has increasingly adopted e-procurement to streamline its procurement processes and enhance operational efficiency. By adopting e-procurement, NBC aims to eliminate inefficiencies related to manual procurement, such as paperwork delays, inaccuracies, and the risk of fraud.

Given the importance of procurement in maintaining smooth manufacturing operations, evaluating how e-procurement adoption impacts the Nigerian Bottling Company's performance in Yobe State is essential. This study explores the role of e-procurement in improving procurement efficiency, cost management, and supplier relationships in the manufacturing sector.

Statement of the Problem

The procurement process in the manufacturing sector is often characterized by inefficiencies such as delayed order fulfillment, manual record-keeping, and difficulties in supplier management. These challenges hinder operational performance, increase operational costs, and reduce profitability. While Nigerian Bottling Company has implemented e-procurement to address these issues, the impact of its adoption on procurement efficiency and cost savings has not been thoroughly evaluated in the context of Yobe State. This study aims to assess the effects of e-procurement on procurement processes at NBC and its contribution to improving overall operational performance in the region.

Objectives of the Study

  1. To evaluate the effectiveness of e-procurement in improving procurement efficiency at Nigerian Bottling Company in Yobe State.

  2. To assess the impact of e-procurement adoption on cost management and supplier relationships at NBC.

  3. To examine the role of e-procurement in enhancing the overall operational performance of Nigerian Bottling Company in Yobe State.

Research Questions

  1. How has the adoption of e-procurement improved procurement efficiency at Nigerian Bottling Company in Yobe State?

  2. What impact has e-procurement had on cost management and supplier relationships at NBC in Yobe State?

  3. How has e-procurement adoption contributed to the overall operational performance of Nigerian Bottling Company in Yobe State?

Research Hypotheses

  1. E-procurement adoption significantly improves procurement efficiency at Nigerian Bottling Company in Yobe State.

  2. The adoption of e-procurement enhances cost management and supplier relationships at Nigerian Bottling Company.

  3. E-procurement adoption positively impacts the overall operational performance of Nigerian Bottling Company in Yobe State.

Scope and Limitations of the Study

This study focuses on evaluating the adoption of e-procurement at Nigerian Bottling Company in Yobe State. It will examine procurement efficiency, cost management, and supplier relationships based on data collected from employees, suppliers, and procurement records. Limitations may include difficulty in accessing proprietary data and the challenge of evaluating indirect benefits of e-procurement, such as long-term strategic advantages.

Definitions of Terms

  • E-Procurement: The use of digital systems and tools to carry out procurement activities, including ordering, invoicing, and supplier management.

  • Procurement Efficiency: The effectiveness and speed with which a company can manage its procurement processes, including cost and time savings.

  • Supplier Relationship Management: The process of developing and managing interactions with suppliers to ensure timely deliveries and optimal procurement costs.


 





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