Benefits e-Procurement System

Abstract

Procurement is one of the particular activities in business that demands high attention. In the service industry, the procurement department plays a major role in ensuring that the supply of raw materials and goods is planned, purchased, distributed, and consumed efficiently. An influx of activities such as requisition, acquisition, and quality checks are done in this department. In estimating the total cost of acquiring goods and services, it is important for organizations to identify unit costs and other costs associated with operations and maintenance that occur during purchasing and conserving of goods. Recent studies have reported the usage of an Electronic Procurement System (EPS) that replaces the conventional procurement system typically used in the service industry. This paper aims to explore the current practice, effectiveness and efficiency of the procurement systems used in the Malaysian service industry through a systematic review of literature. Findings of this study will assist service businesses to analyze their procurement activities and develop proper strategies that can reduce costs, increase efficiency, and most importantly, improve their bottom line.