An assessment of the role of procurement automation in reducing fraud: A case study of Nigerian Breweries in Kwara State.
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Background of the study
Procurement automation refers to the use of digital tools and systems to streamline the procurement process, from requisitioning to payment. The automation of procurement processes has been widely acknowledged for its ability to enhance efficiency, transparency, and accuracy within organizations (Chikere et al., 2024). As procurement processes often involve large sums of money and numerous stakeholders, they are particularly susceptible to fraud, corruption, and human errors (Johnson et al., 2023). Fraudulent activities, such as kickbacks, invoice manipulation, and procurement collusion, have significant financial and reputational consequences for organizations (Akanji et al., 2023).
Nigerian Breweries, a leading beverage company, operates in a highly competitive and complex environment in Nigeria, with an extensive supply chain network. The company has implemented procurement automation to streamline operations and reduce the risk of fraud (Oladapo & Amadi, 2024). Kwara State, with its growing business infrastructure, serves as one of the company’s operational hubs where procurement activities are critical to maintaining business continuity. Automation within Nigerian Breweries aims to ensure transparency, reduce manual errors, and create audit trails that can easily detect and deter fraudulent activities.
The need for procurement automation has never been more critical, as companies in Nigeria face heightened scrutiny and demand for accountability in their procurement processes. This study explores the extent to which procurement automation has helped Nigerian Breweries reduce fraud, improve efficiency, and foster trust among stakeholders in Kwara State.
Statement of the problem
Despite the widespread adoption of procurement automation, fraud remains a persistent issue in many organizations, particularly in the Nigerian business environment. While automation tools have the potential to reduce human errors and detect fraudulent activities, the effectiveness of these systems in actually preventing and minimizing fraud is not well understood (Nwachukwu et al., 2023). Nigerian Breweries, despite its proactive adoption of automation, still faces challenges related to fraudulent activities, such as kickbacks and manipulation of purchase orders. The extent to which automation can fully mitigate fraud risks and ensure transparency in procurement processes in Kwara State remains unclear. This study seeks to fill this gap by evaluating how procurement automation has impacted fraud prevention within Nigerian Breweries, focusing on Kwara State as a representative example.
Objectives of the study
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To assess the role of procurement automation in reducing fraud within Nigerian Breweries in Kwara State.
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To examine the relationship between procurement automation and operational efficiency at Nigerian Breweries in Kwara State.
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To identify the challenges Nigerian Breweries faces in fully implementing procurement automation to combat fraud in Kwara State.
Research questions
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How has procurement automation contributed to reducing fraud in Nigerian Breweries’ procurement processes in Kwara State?
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What is the relationship between procurement automation and operational efficiency in Nigerian Breweries in Kwara State?
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What challenges does Nigerian Breweries face in implementing procurement automation to reduce fraud in Kwara State?
Research hypotheses
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Procurement automation significantly reduces fraud in Nigerian Breweries’ procurement processes in Kwara State.
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Procurement automation has a positive impact on operational efficiency within Nigerian Breweries in Kwara State.
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Nigerian Breweries faces challenges in fully implementing procurement automation due to factors such as employee resistance and infrastructure limitations in Kwara State.
Scope and limitations of the study
This study will focus on Nigerian Breweries’ procurement operations in Kwara State, assessing how procurement automation affects fraud reduction and operational efficiency. The study will rely on primary data collected through interviews with procurement managers and surveys of employees involved in procurement processes. Limitations include potential biases in responses from employees and challenges in accessing detailed procurement data due to confidentiality. Additionally, the study will be constrained by the scope of Nigerian Breweries' operations in Kwara State, which may not be fully representative of all regions.
Definitions of terms
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Procurement automation: The use of technology to manage and automate the procurement process, including order placement, invoicing, and payment.
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Fraud: Deliberate deception intended to secure unfair or unlawful gain, such as bribery, kickbacks, and falsification of procurement documents.
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Operational efficiency: The ability of an organization to minimize waste, reduce costs, and optimize the use of resources in its operations.
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