In this paper, the benefits and challenges embedded in Electronic procurement (e-procurement or ePerolehan) are highlighted. Specifically, the benefits of introducing e-procurement for tendering and online registration of businesses and companies in Malaysia was emphasized.The study highlighted E-procurement advantages such as cost reduction, improved efficiency in government business with the aid of internet-based information and communication technology.The study concluded with recommendations to policy makers to pay more attention to the availability of infrastructure such as information technology for a better E-procurement implementation

Bamgbade, Jibril Adewale

Deraman, Rafikullah

Mehdi Riazi, Salman Riazi

Mohd Nawi, Mohd Nasrun

Zulhumadi, Faisal

In this paper, the benefits and challenges embedded in Electronic procurement (e-procurement) are highlighted. Specifically, the benefits of introducing e-procurement (termed e-Perolehan) for tendering and online registration of businesses and companies in Malaysia was emphasized. This study also focus on the advantages of E-procurement adoption such as cost reduction, improved efficiency in government business with the aid of internet-based information and communication technology. The study concluded with recommendations to policy makers to pay more attention to the availability of infrastructure such as information technology for a better E-procurement implementation

Adewale Bamgbade, Jibril

ExcelingTech Publishing Company (E-Journals)

E-Procurement in Malaysian Construction: Benefits and Challenges in Implementation

Student mobility program have risen to the top of local universities' worldwide priorities. In addition to giving university students the chance to learn about different cultures,n this programme helps expose them to various study strategies. Mobility programmes should adopt a new strategy in the age of Revolution Industry 4.0 and use technology as the vehicle for implementation. This study aims to determine whether virtual mobility programmes are

appropriate for implementation, the level of students' knowledge regarding virtual mobility implementation, the reasons why students joined virtual mobility programmes, and the kinds of media that students anticipated using when participating in virtual mobility. Quantitative method was used with survey questionnaire to collect the data. A total of 304 students of Malaysian Technical Higher Institution were involved as a sample in this study also descriptive and inferential analysis were employed to this study. The findings showed that virtual mobility can be seen as an alternative for conventional mobility and it still has an impact on students’ soft skills. Besides, the data showed that the level of students’ knowledge towards the implementation of virtual mobility is moderate and majority of the respondents decided to join the virtual mobility program because they could develop their information technology skills. Meanwhile, most of the respondents expected to use internet as a main medium to join the virtual mobility program

Isa, K

W.H.N, Wan Muda

Halim, F

Ismail, N

UTHM Institutional Repository

A Strategies of Success Virtual Mobility for Technical Students

In this paper, the benefits and challenges embedded in Electronic procurement (e-procurement or e-Perolehan) are highlighted. Specifically, the benefits of introducing e-procurement for tendering and online registration of businesses and companies in Malaysia was emphasized. The study highlighted E-procurement advantages such as cost reduction, improved efficiency in government business with the aid of internet-based information and communication technology. The study concluded with recommendations to policy makers to pay more attention to the availability of infrastructure such as information technology for a better E-procurement implementation

E-Procurement in Malaysian construction industry: benefits and challenges in implementation

UUM Repository

Int. J Sup. Chain. Mgt  Vol. 6, No. 1, March 2017 209 E-Procurement in Malaysian Construction Industry: Benefits and Challenges in Implementation Mohd Nasrun Mohd Nawi#1, Rafikullah Deraman#2, Jibril Adewale Bamgbade #3, Faisal Zulhumadi#4, Salman Riazi Mehdi Riazi#5  #1,3,4School of Technology Management and Logistics, Universiti Utara Malaysia, Sintok, Kedah, Malaysia. #2Faculty of Civil and Environmental Engineering, Universiti Tun Hussien Onn Malaysia, 86400 Parit Raja, Batu Pahat, Johor Darul Ta’zim, Malaysia #5Housing, Building and Planning, Universiti Sains Malaysia, Penang, Malaysia  1nasrun@uum.edu.my 2rafikullah@uthm.edu.my  3jibril1717@yahoo.com  4faisal@uum.edu.my  5salman.riazi@usm.my   Abstract— In this paper, the benefits and challenges embedded in Electronic procurement (e-procurement or e-Perolehan) are highlighted. Specifically, the benefits of introducing e-procurement for tendering and online registration of businesses and companies in Malaysia was emphasized. The study highlighted E-procurement advantages such as cost reduction, improved efficiency in government business with the aid of internet-based information and communication technology. The study concluded with recommendations to policy makers to pay more attention to the availability of infrastructure such as information technology for a better E-procurement implementation.   Keywords— Procurement; E-Procurement; Cost reduction; Improved efficiency; Malaysian Construction Industry.  1. Introduction Electronic procurement (e-procurement), which implies the automation of an organization’s procurement of goods and services through web-based applications, has been noted for its potentials to rationalize organisational expenditure, reduce administrative costs, and stimulate efficiency in operations [1]. Typically, procurement is one of the most important areas in organizational cost structure [2].  And public sector organizations applying e-procurement intelligently for contracts could generate several benefits depending on the context of its implementation. Attaining competitiveness, dematerialization and reduction in procurement services corruption among the employees and managers [3] are the major areas that has been noted to benefit the most from the implementation of e-procurement.   The Malaysian government has introduced e-procurement (termed e-Perolehan) for tendering and online registration of businesses and companies within Malaysia. This e-Perolehan streamlines government activities with the aim of improving the quality of services it renders. Suppliers could easily participate in the government tendering procedures by subscribing to the e-procurement system, as the system not only eliminates the traditional procurement procedures, it also provides reliable outcomes in a complex environment like government establishments [4]. As such, it helps the businesses to simplify regulatory processes, cuts red-tapism and be law-complaint. It also assists the government in online business, especially in such areas like e-marketing strategies. Again, Alshehri [5] noted that e-procurement system is a useful tool in government to business, just like the G2C system, by improving the quality of communication and transactions with business. Also, it improves accountability and transparency in government contracts and projects [6]. The e-procurement procedure allows government contracting authorities to procure goods and services from their suppliers electronically, by transforming the hitherto manual procurement procedure into an electronic, internet-based system [7].  Suppliers, in turn, benefit from being able to present their products on the World Wide Web. They (suppliers) are able to receive, manage and process government purchase orders, and receive payment from government agencies online by using the e-procurement system. With the automation of the entire procurement cycle ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)  Int. J Sup. Chain. Mgt  Vol. 6, No. 1, March 2017 210 in e-procurement System, suppliers benefit significantly from the opportunity to reach a broader base of buyers than ever before coupled with lower operating costs, shorter turnaround time, additional revenue and increased customer satisfaction. Evidence from the extant literature reveals important benefits of e-procurement implementation in the government sector. E-procurement is known to reduce transaction cost, leading to a better decision and better value in the procurement output. There are also evidences that E-procurement has benefited small business operators to reduce bureaucracy in dealing with the authorities, while also provides access to government electronic market places. Again, some common aims were identified in the implementation of e-procurement in the government sector. These include: Increasing efficiency in government business; Government becomes e-commerce initiator; and public service modernization [8]. 2. Literature Review  Studies have identified e-procurement as the hallmark and main concern of global e-Government agenda [9, 10].  Some studies also demonstrated e-procurement adoption as a complimentary procedure to e-government systems in many countries [11]. However, a dearth of deep understanding of theoretical and practical underpinnings of e-procurement processes in public policy and administration could limit the benefits inherent in its adoption [12]. In the same line of thought, e-procurement benefits could be adequately reaped by understanding the roles of Information Technology to run the procurement procedure, considering the fact that system software and hardware makes the e-procurement easier to understand [13]. Furthermore, as technology progresses, various forms of online platforms tend to provide integrated packages like the social networks, that are capable of  blurring the lines between one form of technology and another [14]. Besides that, e-procurement has also assisted in the provision of online services through the internet.  Another definition is where supplier and buyers exchange goods and services using the internet and information technology application. An e-Procurement system uses Internet-based information and communication technology for purchase, where processes like searching, sourcing, negotiation, ordering and receiving, and after- purchase review are done with ease [15]. As more users are connected via the internet, the application enabled transactions or procurements with other entities over the internet. E-procurement uses integrated information technology for entire procurement functions, from the beginning to the end that is from searching, sourcing, negotiating, ordering, and receipt to post-purchase review, as shown in Figure 1. E-procurement has become popular among businesses, industries and governments as a powerful tool to improve effectiveness and efficiencies as well as service quality for organizations that has adopted it [16].                     Fig. 1. An Overview of Procurement Process                  Operations Maintenance Projects Start End Supplier Need Fulfillment Forecast Plan & Coordinate Need Clarification / Specification Sourcing / Decision Contract / Purchase Order Generation Receive Material & Documents Settle and pay Int. J Sup. Chain. Mgt  Vol. 6, No. 1, March 2017 211 3. Benefits of Practising E-procurement Adopting E-procurement system has brought great benefits to the government and it has been noted as a way by which governments can save management cost and become more efficient in procurement of goods online [17].  The main advantage that e-procurement can deliver include cost reduction, process re-organization, improved contract fulfilment, among other benefits [18]. The significant cost saving of e-procurement to the government is in the reduction of cost and efforts of processing the purchase order which can be manipulated electronically and reduction in inventory costs and decrease in order fulfilment time. [16] identified four types of cost saving from using e-procurement system. These include, order cost, administrative cost, lead-time order cost and opportunity cost of capital. Thai, [19] also alluded that practicing e-procurement provides quality bidding, efficient timeliness, cost saving, minimizing efforts in doing business, reduce financial risks and technical risks, and finally increase competition which lead to save cost of buying goods or services at high prices. Also, public sector bidding is one of the best settings to implement e-procurement of goods and services, considering the high transparency of information resulting from electronic bidding [20]. E-procurement system offers more effective and efficient procurement process in line with the country’s transformation to the knowledge based economy (K-economy).  It is a way for the government to promote the widespread adoption of e-Business in the country.  E-procurement helps provide latest product information and pricing to the government which is available online. The system is supposed to be up to date with the latest information that will help the buyer to make a more accurate procurement decision. 4. Challenges in E-procurement Implementation E-procurement system is a relatively recent development in the business application area. And the lack of benchmarkable reference models especially in new firms that are just beginning to learn of these systems’ functionalities and uses in their organizations. Previous studies [21, 22, 23] have identified certain factors contributing to challenges in the implementation of e-procurement such as technology, infrastructure and legislation, environment; besides resource constraints and organizational and management characteristics.  External factors from the industry, market, government and technology change are beyond the control of organizations [24]. However, these barriers can be minimized and even completely mitigated.  Technology barrier to the suppliers includes understanding and commitment to a specialist software and the startup fee that are beyond the capabilities of SMEs required by the vendors.  Focus of support for the systems are more on the larger companies.  The usefulness and security issues of the system are major concerns for potential adopters. Wide-spread use of e-procurement system also depends on the availability of supporting infrastructures such as sufficient broadband coverage. Inadequacies in government policies and legislation are areas to be highlighted in the system. The standard procedure for governmental tendering process which mandates the buying of printed tender documents in offices by interested parties is a good example. This prohibits the use of e-tendering system and presents a huge setback for the government attempt to establish and electronic government system. Lack of standard in the development of E-procurement system results in users of one system cannot communicate electronically with users of other system, creating a diverse but fragmented E-procurement environment.  5. Conclusion E-procurement is more than just a system for making purchases online. The system has been implemented to achieve significant benefits such as cost savings and increase efficiency.  Other advantages in applying e-procurement system are faster government procurement process and higher transparency compared to Int. J Sup. Chain. Mgt  Vol. 6, No. 1, March 2017 212 traditional procurement and tendering ways.  The system helps government agencies in making decision through providing easy access and relevant information about each bid and competitors.  Awarding process will be very organized and precise because the decision committees will have better knowledge about theses bids and they could obtain better pricing which will save a lot of unnecessary costs. It is important for the government to pay more attention to the availability of infrastructure such as information technology for a better E-procurement implementation. ICT tools are important to help increase effectiveness and efficiency.  Business communications, business process, cost reduction and cycle time, explore new markets and business opportunities, increase transparency in contracts and overall competitiveness are fields to be given more focus in improving the e-procurement system in the government agencies. References [1] Gardenal, F., "A model to measure e-Procurement impacts on organizational performance". Journal of Public Procurement, Vol 13, No. 2, p. 215, 2013. [2] Amemba, C.S., et al., "Challenges Affecting Public Procurement Performance Process in Kenya". International Journal of Research in Management. Issue, 2013. 3. [3] Mamavi, O., et al., "Out of sight, out of mind? Supplier spatial proximity in French public procurement". International Journal of Public Sector Management, Vol. 27, No. 6, pp. 486-500, 2014. [4] Pasiopoulos, A., et al., "The Implementation of e-procurement System in Health Sector in Greece: Attitudes of Potential Users and Implications for Hospital Management". International Journal of Health Research and Innovation, Vol. 1, No. 1, pp. 15-23, 2013. [5] Alshehri, M. and S. Drew. "E-Government fundamentals. in IADIS". International Conference ICT, Society and Human Beings. 2010. Citeseer. [6] Moon, M.J., "E-procurement management in state governments: diffusion of e-procurement practices and its determinants". Journal of Public Procurement, Vol. 5, No. 1, p. 54,  2005. [7] Sila, I., "Factors affecting the adoption of B2B e-commerce technologies". Electronic Commerce Research, Vol. 13, No. 2, pp. 199-236, 2013. [8] Ojha, A. and S. Palvia, "E-Government and the Fight Against Corruption: Conceptual Modeland Five Case Studies from India". Journal of Information Technology Case and Application Research, Vol. 14, No. 4, pp. 11-29, 2012. [9] Mahalik, D.K., "Does Decision Changes—A Case Discussion on e-Governance Outsourcing: A Fuzzy Analysis Approach". Global Business Review, Vol. 15 No. 4, pp. 39S-48S, 2014. [10] Ronald, N.K. and J.Q. Omwenga, "Factors Contributing to Adoption of E-Procurement in County Governments: A Case Study of County Government of Bomet". International Journal of Academic Research in Business and Social Sciences, Vol. 5, No. 10, pp. 233-239, 2015. [11] Schedler, K., "Unleashing change; A study of organizational Renewal in government"‐Editied by Steven Kelman. Public Administration, Vol. 85, No. 1, pp. 246-248, 2007. [12] McCue, C. and A.V. Roman, "E-procurement: Myth or Reality?" Journal of Public Procurement, Vol. 12, No. 2, p. 221, 2012. [13] Chi, M., J. Zhao, and J.F. George, Mediation and time-lag analyses of e-alignment and e-collaboration capabilities. Industrial Management & Data Systems, 2015. 115(6): p. 1113-1131. [14] Park, H.M. Should E-government Be Transformational and Participatory? An Essay on E-government in the Utilitarian Mode of Information Technology Use. in System Sciences (HICSS), 2015 48th Hawaii Int. J Sup. Chain. Mgt  Vol. 6, No. 1, March 2017 213 International Conference on. 2015. IEEE. [15] Oh, S., H. Yang, and S.W. Kim, "Managerial capabilities of information technology and firm performance: role of e-procurement system type". International Journal of Production Research, Vol. 52, No. 15, pp. 4488-4506, 2014. [16] Eei, K.S., W. Husain, and N. Mustaffa, "Survey on benefits and barriers of e-procurement: Malaysian SMEs perspective". International Journal on Advanced Science, Engineering and Information Technology, Vol. 2, No. 6, pp. 424-429, 2012. [17] Chang, H.H. and K.H. "Wong, Adoption of e-procurement and participation of e-marketplace on firm performance: Trust as a moderator". Information & Management, Vol. 47, No. 5,  pp. 262-270, 2010. [18] Gamal Aboelmaged, M., "Predicting e-procurement adoption in a developing country: an empirical integration of technology acceptance model and theory of planned behaviour". Industrial Management & Data Systems, Vol. 110, No. 3, pp. 392-414, 2010. [19] Thai, K.V., "Public procurement re-examined". Journal of public procurement, Vol. 1, No. 1, p. 9, 2001. [20] Layne, K. and J. Lee, "Developing fully functional E-government: A four stage model". Government information quarterly, Vol. 18, No. 2, pp. 122-136. [21] Griffiths, G. and H. Payab, "Supply on the heels of demand*: issues of e-procurement". Journal of Global Business Issues, Vol. 4, No. 2, p. 29, 2010. [22] Gunasekaran, A., et al., "E-Procurement adoption in the Southcoast SMEs". International Journal of Production Economics, Vol. 122, No. 1, pp. 161-175, 2009. [23] Nawi, M.N.M., Roslan, S., Salleh, N.A., Zulhumadi, F., Harun, A.N. (2016) "The Benefits and Challenges of E-procurement Implementation: A Case Study of Malaysian Company". International Journal of Economics and Financial Issues Vol. 6, No. 7, pp. 329-332.  [24] Fernandes, T. and V. Vieira, "Public e-procurement impacts in small-and medium-enterprises". International Journal of Procurement Management, Vol. 8, No. 5, pp. 587-607, 2015.      

e-Procurement in Malaysian construction industry: benefits and challenges in implementation

http://repo.uum.edu.my/21949/1/IJSCM%206%201%202017%20209%20213.pdf

e-Procurement in Malaysian construction industry: benefits and challenges in implementation

Abstract

Similar works

Full text

Available Versions

ExcelingTech Publishing Company (E-Journals)

UTHM Institutional Repository

UTHM Institutional Repository

UUM Repository