Role of Technology in Enhancing Procurement Processes and Efficiency in Firms in Odense, Denmark.
DOI:
https://doi.org/10.53819/81018102t5175Abstract
Procurement is a critical function in any organization, responsible for sourcing and acquiring the goods and services needed to run the business. Technology enhances procurement processes and efficiency by providing greater automation, visibility, and control, and by enabling data-driven decision making. Technology has the potential to transform procurement, making it more efficient, effective, and collaborative. Research noted that technology plays a vital role in enhancing procurement processes and increasing efficiency. The study discovered that organizations that implemented e-procurement systems saw significant improvements in procurement efficiency. Technology has greatly improved the efficiency of the procurement process by automating many of the manual and repetitive tasks, such as data entry and purchase order generation. Technology has also improved the visibility and transparency of the procurement process. The study concluded that technology has transformed procurement by streamlining processes, increasing efficiency, reducing costs, and improving collaboration with suppliers. Organizations that embrace technology to enhance their procurement processes can realize significant benefits, such as increased accuracy, faster turnaround times, and improved visibility and control. Technology has improved collaboration between procurement teams and suppliers. Digital tools and platforms enable better communication and collaboration between procurement teams and suppliers, which help to build stronger relationships and improve supplier performance. In the rapidly evolving business landscape, organizations that fail to adopt technology to enhance their procurement processes may find themselves falling behind the competition. The study recommended that it is important to create/adopt a technology strategy that aligns with the firm's procurement goals. As procurement processes become more digitized, it's important to prioritize data security. There should be appropriate cybersecurity measures, such as firewalls, encryption, and user authentication, to protect sensitive procurement data.
Keywords: Technology, Procurement, Denmark
References
Bals, L., Schulze, H., Kelly, S., & Stek, K. (2019). Purchasing and supply management (PSM) competencies: Current and future requirements. Journal of purchasing and supply management, 25(5), 100572. https://doi.org/10.1016/j.pursup.2019.100572
Chen, Y., Bretschneider, S., Stritch, J. M., Darnall, N., & Hsueh, L. (2022). E-procurement system adoption in local governments: the role of procurement complexity and organizational structure. Public Management Review, 24(6), 903-925. https://doi.org/10.1080/14719037.2021.1874497
Demircioglu, M. A., & Vivona, R. (2021). Positioning public procurement as a procedural tool for innovation: an empirical study. Policy and Society, 40(3), 379-396. https://doi.org/10.1080/14494035.2021.1955465
Faccia, A., & Petratos, P. (2021). Blockchain, enterprise resource planning (ERP) and accounting information systems (AIS): Research on e-procurement and system integration. Applied Sciences, 11(15), 6792. https://doi.org/10.3390/app11156792
Flechsig, C., Anslinger, F., & Lasch, R. (2022). Robotic Process Automation in purchasing and supply management: A multiple case study on potentials, barriers, and implementation. Journal of Purchasing and Supply Management, 28(1), 100718. https://doi.org/10.1016/j.pursup.2021.100718
Haller, H., Fagerholm, A. S., Carlsson, P., Skoglund, W., van den Brink, P., Danielski, I., ... & Englund, O. (2022). Towards a resilient and resource-efficient local food system based on industrial symbiosis in härnösand: a Swedish case study. Sustainability, 14(4), 2197. https://doi.org/10.3390/su14042197
Handfield, R., Jeong, S., & Choi, T. (2019). Emerging procurement technology: data analytics and cognitive analytics. International Journal of Physical Distribution & Logistics Management, 49(10), 972-1002. https://doi.org/10.1108/IJPDLM-11-2017-0348
Jahani, N., Sepehri, A., Vandchali, H. R., & Tirkolaee, E. B. (2021). Application of industry 4.0 in the procurement processes of supply chains: a systematic literature review. Sustainability, 13(14), 7520. https://doi.org/10.3390/su13147520
Khalfan, M., Azizi, N., Haass, O., Maqsood, T., & Ahmed, I. (2022). Blockchain technology: Potential applications for public sector E-procurement and project management. Sustainability, 14(10), 5791. https://doi.org/10.3390/su14105791
Khan, S. A. R., Zia‐ul‐haq, H. M., Umar, M., & Yu, Z. (2021). Digital technology and circular economy practices: An strategy to improve organizational performance. Business Strategy & Development, 4(4), 482-490. https://doi.org/10.1002/bsd2.176
Kosmol, T., Reimann, F., & Kaufmann, L. (2019). You'll never walk alone: Why we need a supply chain practice view on digital procurement. Journal of Purchasing and Supply Management, 25(4), 100553. https://doi.org/10.1016/j.pursup.2019.100553
Lafkihi, M., Pan, S., & Ballot, E. (2019). Freight transportation service procurement: A literature review and future research opportunities in omnichannel E-commerce. Transportation Research Part E: Logistics and Transportation Review, 125, 348-365. https://doi.org/10.1016/j.tre.2019.03.021
Nanayakkara, S., Perera, S., Senaratne, S., Weerasuriya, G. T., & Bandara, H. M. N. D. (2021, May). Blockchain and smart contracts: A solution for payment issues in construction supply chains. In Informatics (Vol. 8, No. 2, p. 36). MDPI. https://doi.org/10.3390/informatics8020036
Nani, D. A., & Ali, S. (2020). Determinants of Effective E-Procurement System: Empirical Evidence from Indonesian Local Governments. Jurnal Dinamika Akuntansi Dan Bisnis, 7(1), 33-50. https://doi.org/10.24815/jdab.v7i1.15671
Sánchez-Rodríguez, C., Martínez-Lorente, A. R., & Hemsworth, D. (2020). E-procurement in small and medium sized enterprises; facilitators, obstacles and effect on performance. Benchmarking: An International Journal, 27(2), 839-866. https://doi.org/10.1108/BIJ-12-2018-0413
Singh, P. K., & Chan, S. W. (2022). The impact of electronic procurement adoption on green procurement towards sustainable supply chain performance-evidence from Malaysian ISO organizations. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 61. https://doi.org/10.3390/joitmc8020061
Tiwari, S., Wee, H. M., & Daryanto, Y. (2018). Big data analytics in supply chain management between 2010 and 2016: Insights to industries. Computers & Industrial Engineering, 115, 319-330. https://doi.org/10.1016/j.cie.2017.11.017
van Hoek, R., Sankararaman, V., Udesen, T., Geurts, T., & Palumbo-Miele, D. (2020). Where we are heading and the research that can help us get there–executive perspectives on the anniversary of the Journal of Purchasing and Supply Management. Journal of Purchasing and Supply Management, 26(3), 100621. https://doi.org/10.1016/j.pursup.2020.100621
Volkonskaya, A., Pashkina, O., Galenko, N., Kurlikov, O., & Parsova, V. (2020). Electronic form of procurement in agricultural enterprises. In BIO Web of Conferences (Vol. 17, p. 00127). EDP Sciences. https://doi.org/10.1051/bioconf/20201700127
Zhu, Q., & Kouhizadeh, M. (2019). Blockchain technology, supply chain information, and strategic product deletion management. IEEE Engineering Management Review, 47(1), 36-44. https://doi.org/10.1109/EMR.2019.2898178
