Impact of e-procurement on the cost of manufacturing firms in Pakistan

Abstract

The analysis in the research is regarding the impact of e-procurement on different costs associated with procurement functions in Pakistan's manufacturing industry. The survey was conducted with the help of a questionnaire designed based on the Likert scale. The analysis was achieved using statistical techniques such as regression and correlation, which can be used to analyze the extent of the relationship between different variables. The chosen statistical methods were applied through SPSS, a specialized software used for this purpose. The rationale behind using quantitative methodology is that they are essential in identifying the presence of association between different variables. A sample of 100 respondents was used for surveys. The respondents were procurement managers working in various Pakistani manufacturing industries, as they were considered relevant to provide authentic findings on this particular issue. The findings demonstrated a positive association between the use of e-procurement and the cost of procurement activities that are part of the supply chain operations of the manufacturing firms. The dependent variables included in the research as part of procurement activities include procurement cost, labour cost, the time incurred in the delivery made by the suppliers, and the purchase requisition cost. The results demonstrated that e-procurement has a significant positive impact on managing firms' labour costs. However, the relationship of e-procurement with other dependent variables, such as supplier timing, purchase requisition, and procurement cost, is positive but insignificant.