The Ability of the Internet to Streamline the Purchasing Function of the Customers by Streamlining - Essay Example

The Adoption of E-Procurement in the Public Sector Name: Course: Institution: Date: The Adoption of E-Procurement in the Public Sector Journals being reviewed The journals to be reviewed are: Doherty, N, McConnell, D & Ellis-Chadwick, F. 2013, 'Institutional responses to electronic procurement in the public sector', International Journal of Public Sector Management, vol. 26, no. 6, pp. 495-515.  Gebauer, J, Beam, C & Segev, A 1998, 'Impact of the internet on procurement', Acquisition Review Quarterly, vol. 5, no. 2, pp. 167-184. Johnson, M 2012, 'A study of e-market adoption barriers in the local government sector', Journal of Enterprise Information Management, vol. 25, no. 6, pp. 509-536 Introduction The internet has been used a powerful resource in the enhancement of supplier-buyer relationship. This is success had been attributed to the ability of the internet to streamline the purchasing function of the customers by streamlining the supplier base. It is factual that e-procurement has numerous operational and financial advantages which are only realizable when the administrators in public institutions cultivate effective strategies which can be used in the dilution of the challenges. The main objective of this essay is to engage in a critical journal review process aimed at comparing and contrasting the views by different authors on the essence of e-procurement in the public sector. Summary In the article Institutional Responses to Electronic Procurement in the Public Sector, Doherty and McConnell (2012, p. 495) identify that despite the popularity of the internet as an essential tool of procurement has been facing challenges in term of uptake in the public sector. Through an in-depth analysis of five case studies conducted in central and local government organizations, Dehorty and McConnell (2012, p. 508) found that each of the organizations were in the process of implementing different aspect of internet in their operations. However, none of these organizations intends to adopt e-market places. Dehorty and McConnell (2012, p. 509) recognize that there are underlying benefits when public institutions adopt e-procurement capabilities with regard to cost effectiveness and the creation of opportunities for transparency when operating with their trading customers. The inability of public institutions to re-engineer the procurement process, inappropriate competences among employees, the organizational cultures and unavailability of appropriate standards of operations are the factors that limit the ability of public institutions to ensure successful adoption of e-procurement. The internet through its varieties of processes is increasingly changing the picture of costly and time consuming procurement process that have been ineffective in the realization of organizational goals. Gebauer, Beam and Segev (1998, p. 167) in the article The Impact of Internet of Procurement, argue that the essence e-procumbent with regard to organization growth is based on the understanding that most of these organization spend approximately one third of their budget in the purchase of goods and services. Despite the perceived benefits of the e-procurement, Gebauer, Beam, and Segev (2012, p. 173) argue that there are differences in the nature of the procurement processes in public and private institutions. This is because the organizations structure of these institutions operates of different objectives and constraints. The process of adopting the internet as a tool in the procurement process can only be effective when both public and private organizations reengineer their structures such that they benefit from the buyer supplier relationship developed through the automation of their operations. While assessing the factor that impede local authorities from effective implementation of e-markets, Johnson (2012) in the article A Study of e-market Adoption Barriers in the Local Government Sector, argues that there is need for manager sin the public sector to make significant cost effective initiatives. This is by adopting e-procurement measures to reduce the unnecessary inefficiencies in purchasing and supplying goods and services. Through case studies, Johnson (2012, p. 520) identified challenges such as risk perception, trust, firm size, knowledge, organizational readiness, and deficits as the factors affecting the adoption of e-markets in local government sector. The deployment of innovative technology in the public sector through streamlining the e-procurement provides these organizations with the ability of developing cost reduction initiatives. The challenge necessitating the rise of these factors in public institutions is that there is limited priority given to issues of e-procurement by local authorities. This has resulted in the development of the perception that e-markets are relatively insignificant in delivering significant benefits that would warrant local authorities to effectively participate in them. Even in situations where local authorities implement e-markets, they often lack a critical mass of e-enabled trading partners. Resistance among users because of organizational change and cultural issues affects the ability of effective development and implementation of the entire process (Johnson 2012, p. 530). Critique In the private sector e-procurement has been used as an essential a platform that has resulted in significant improvement of the procurement cost, the status of purchasing function and changes in the structure of the supply chain. In the public sector, e-procurement can be considered a possibility when the organizations through the management implement effective structural models. These will help in the identification of the gap within the organizations and the development of effective measures that can be used in addressing these gaps. Furthermore, by addressing the internal service quality attributes of e-procurement, it will be possible public institution to develop effective long-term plans for its operations on the internet. The use of the internet as a procurement tool improves on the nature of infrastructure providing more alternatives to different buyers and suppliers in different parts of the world. Furthermore, through e-procurement it is possible for organization to establish and maintain closer and mutual business relationships with suppliers and other partners which has the probability of streamlining the procurement process an leveraging the buyer power. The complications facing full development of e-procurement in both public and private organizations can only be addressed when those who have an understanding of the procurement process with regard to the expected outcomes lead the implementation process. This is because through such an understanding, it will be easy to identify and engage in the assessment of the costs and benefits of e-procurement as an essential tool in improving the efficiency of purchase and supply processes within an organization. Effective implementation of e-markets can only be possible through sensitization and awareness of the potential and actual benefits of the internet with regard to electronic data interchange (EDI). The awareness process must be focused on the processes and transactions that when automated through the internet can offer local government authorities with platforms of sending and receiving electronic documents at a quicker and cost effective way. While addressing the factors that affect the ability of local organizations to engage in effective implementation of the e-procurement processes, it will be important to understand the essence of engaging suppliers and buyers in a database-to-database transaction system. This is because this approach necessitates a streamlined procurement process offering real-time and effective business solutions, which are essential in the reduction of additional impediments to successful business transactions. Conclusion E-procurement has numerous operational and financial benefits, which are only attainable when the officers in public institutions cultivate operative strategies, which can be used in the reduction of the existing setbacks. Challenges such as lack a critical mass of e-enabled trading partners and resistance among users affect the ability of effective development and implementation of the entire process. Sensitization on e-procurement and engaging experts in the development process can enable the identification and engagement of professionals in the assessment of the costs and benefits of e-procurement as an essential tool in improving the efficiency of purchase and supply processes within an organization. Critical Analysis Tool Topic: The Adoption of E-Procurement in the Public Sector Key Area E-Procurement in the Public Sector Article 1 Doherty, N, McConnell, D & Ellis-Chadwick, F Article 2 Gebauer, J, Beam, C & Segev, A Article 3 Johnson, M Internet and procurement The inability of public institutions to re-engineer the procurement process, inappropriate competences among employees, the organizational cultures and unavailability of appropriate standards of operations are the factors that limit the ability of public institutions to ensure successful adoption of e-procurement. The use of the internet as a procurement tool improves on the nature of infrastructure providing more alternatives to different buyers and suppliers in different parts of the world. The deployment of innovative technology in the public sector through streamlining the e-procurement provides these organizations with the ability of developing cost reduction initiatives Challenges of implementing e-procurement Inability of public institutions to re-engineer the procurement process Inappropriate competences among employees Organizational cultures and unavailability of appropriate standards of operations Organizational structure of these institutions operates of different objectives and constraints Limited priority given to issues of e-procurement by local authorities Resistance among users because of organizational change and cultural issues Strategies of implementing e-procurement Implement effective structural models Addressing the internal service quality attributes of e-procurement Reengineer structures such that they benefit from the buyer supplier relationship developed through the automation of their operation Sensitization and awareness of the potential and actual benefits of the internet with regard to electronic data interchange (EDI). References Doherty, N, McConnell, D & Ellis-Chadwick, F. 2013, 'Institutional responses to electronic procurement in the public sector', International Journal of Public Sector Management, vol. 26, no. 6, pp. 495-515.  Gebauer, J, Beam, C & Segev, A 1998, 'Impact of the internet on procurement', Acquisition Review Quarterly, vol. 5, no. 2, pp. 167-184. Johnson, M 2012, 'A study of e-market adoption barriers in the local government sector', Journal of Enterprise Information Management, vol. 25, no. 6, pp. 509-536. Read More