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Design and Implementation of E-Procurement System

DESIGN AND IMPLEMENTATION OF E-PROCUREMENT SYSTEM


ABSTRACT

E-procurement can be defined as the electronic integration and management of all procurement activities. It includes purchase request, authorization, ordering, delivery, and payment between a purchaser and a supplier. The aim of the study is to design and implement an Electronic Procurement System. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will provide a means of buying products from procurement personnel or business and accurately record product in a concise and precise form. The motivation that led to the implementation of the proposed system is as a result of the manual recording system which tends to be complex and lack of good storage information system and procurement personnel of head office or business units worldwide may not be able to buy the products at the same time. The methodology adopted in this study is the structured system analysis and design methodology (SSADM) which is a technical approach for analyzing and designing an application or system by applying object throughout the software development process. The programming language used is HTML, CSS, JAVASCRIPT, PHP, SQL and JQUERY. The reason why web programming languages was used is because, it is platform independent and it is a web based application. The e-procurement proposed system will have a significant and positive impact on procurement process in the company. The study hopes to solve the problems of traditional procurement method, to lower procurement costs, and to shorten delivery time. It will also help the enterprises improve the efficiency of procurement. The expected result is an Electronic Procurement System that will provide efficient product storage information system and ensure the transparency of transaction to avoid kickbacks and other corrupt practices.


CHAPTER ONE

1.1 Introduction

Electronic Procurement System is an electronic means to integrate corporations and suppliers, allowing revisions on needs/supply to be made through the Internet. It helps companies lower their procurement overheads as well as to save time in procurement. It also enables suppliers to acquire procurement via the platform within the shortest time as well as to get an immediate reply of procurement. The establishment of electronic procurement provides corporations with a safer and more convenient channel for platform information exchange (Nair et al., 2010). However, the building of a rapid response and successful e-procurement platform hinges on one crucial factor; the categorization of products and the formulation of sound material coding principles. The goal of this research is to develop a web-based e-procurement platform, which can be actually initiated in the multinational shipping companies.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.


1.2 Background of Study

The rapid development of information technology has a significant impact on the business world. It affects the way the company runs its business and the used business model. The positive impact of information technology development is the opportunity for every business actor, either big or small, to compete. This can also create a new market and new business models such as e-commerce, e-marketing, and e-procurement. The developed e-procurement system by the IT consultant company is not only used inside the company. It is also used as a framework if there are clients that need an e-procurement system.

According to Chaffey (2009), e-procurement can be defined as the electronic integration and management of all procurement activities. It includes purchase request, authorization, ordering, delivery, and payment between a purchaser and a supplier. Similarly, Electronic Procurement is the process of purchasing and selling goods or services over the Internet or another network such as electronic data interchange and Enterprise Resources Planning (ERP). In short, e-procurement can be interpreted as part of e-business to perform Internet-based procurement process within a company. E-procurement covers not only the purchase process, but it also includes approval, decision-making, and contracting processes with vendors. E-procurement system is quite common in small and medium enterprises in Indonesia.

According to Beauvallet et al., (2014), the main advantage of e-procurement includes saving money, time, and additional workloads that are associated with writing. The conventional procurement process usually involves a lot of paper processing, which consumes a significant amount of time and money. The benefits of e-procurement are not only from time and cost aspect, but it also includes the simplification of the transaction process. Companies can shorten its business processes by cutting out unnecessary activities as conventional procurement processes require a place to gather vendors in the auction process. By using e-procurement, those activities are not needed. Vendors only need to fill out the form listed on the procurement website and the presence of these vendors is not needed.


1.3 Statement of Problem

Investigation revealed the problems of the existing system which is stated as follows;

  1. The manual recording system which tends to be complex and lack of good storage information system.
  2. The procurement personnel of head office or business units worldwide may not be able to buy the products at the same time.
  3. As the internal product coding principles and product categories of a company lack a set of standards, people are unable to find the needed.
  4. The procurement behavior or modes of trading on the part of procurement personnel from head office or worldwide business units cannot be audited. The transactions are not transparent, which easily leads to into kickbacks and other corrupt practices.

Also, there is large amount of manpower required in the procurement work leads to many mistakes occurring in some crucial steps of the procedure which include filling in the order form, sending the order’s confirmations, inventory, inspection, and acceptance of shipment. In view of all these problems, it became necessary to develop an electronic procurement System.


1.4 Aim and Objectives of the Study

The aim of the study is to design and implement an Electronic Procurement System. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will:

  1. Provide a means of buying products from procurement personnel or business;
  2. Accurately record product in a concise and precise form;
  3. Provide efficient product storage information system; and
  4. Ensure the transparency of transaction to avoid kickbacks and other corrupt practices.

1.5 Significance of Study

The significance of e-procurement are not only from time and cost aspect, but it also includes the simplification of the transaction process. Companies can shorten its business processes by cutting out unnecessary activities as conventional procurement processes require a place to gather vendors in the auction process. By using e-procurement, those activities are not needed. Vendors only need to fill out the form listed on the procurement website and the presence of these vendors is not needed.

The e-procurement proposed system will have a significant and positive impact on procurement process in the company. The study hopes to solve the problems of traditional procurement method, to lower procurement costs, and to shorten delivery time. It will also help the enterprises improve the efficiency of procurement.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.


1.6 Scope of Study

The study focuses on the design and implementation of an Electronic Procurement System using pharmacy department of the Enugu State University Teaching Hospital (ESUTH) as a case study.


1.7 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

  1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
  2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
  3. Research material: availability of research material is a major setback to the scope of the study.
  4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
  5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).

1.8 Definition of Terms

Electronic Procurement: It is an electronic means to integrate corporations and suppliers, allowing revisions on needs/supply to be made through the Internet. It helps companies lower.

Database: A collection of logically related data to meet the information need of organization.

DBMS: Database management software that enable the user to define, maintain Control the database.

Application Program: A computer program that interacts with the database.

MENU: This is a list of options presented on the screen with each option identified by short code followed by longer description of its purposes.


CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …


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TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION


    • 1.1 Introduction
    • 1.2 Background …

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction

    CHAPTER THREE

    SYSTEM ANALYSIS AND DESIGN

    • 3.1 Methodology Adopted
    • 3.1.1 Problem Identification Using SSADM
    • 3.2 Analysis of the Existing System
    • 3.2.1 Dataflow of the Existing System
    • 3.2.2 Disadvantages Of The Existing System
    • 3.2.3 Weakness of the existing System
    • 3.3 Feasibility Study
    • 3.3.1 Economic Feasibility
    • 3.3.2 Technical Feasibility
    • 3.3.3 Operational Feasibility
    • 3.4 Analysis of the Proposed System
    • 3.4.1 Data Flow Diagram of the Proposed System
    • 3.4.2 Advantages of the Proposed System
    • 3.4.3 Justification of the Proposed System
    • 3.5 Functional Requirements
    • 3.5.1 Use Case Diagram Of The Admin / User Privileges
    • 3.6 Data Requirements
    • 3.7 High Level Model of the Proposed System

    CHAPTER FOUR

    SYSTEM DESIGN AND IMPLEMENTATION

    • 4.1 Objectives of the Design
    • 4.2 Cohesion and Decomposition High level Model
    • 4.3 Control Center / Overall Dataflow Diagram
    • 4.3.1 Proposed System Operation Flowchart
    • 4.4 System Specification and Design
    • 4.4.1 Input and Output Specification
    • 4.4.2 Database Specification and Design
    • 4.4.3 Data Dictionary
    • 4.5 Choice and Justification of Programming Language
    • 4.6 Program Documentation
    • 4.7 Implementation Techniques
    • 4.7.1 System Testing
    • 4.8 Programming Module Specification
    • 4.8.1 Installation
    • 4.9 Computer Hardware Minimum Requirement
    • 4.10 Software Requirement
    • 4.11 Personnel / User Training
    • 4.12 File Maintenance Module

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary
    • 5.3 Conclusion
    • 5.4 Recommendation

    REFERENCES

    APPENDIX A - “SOURCE CODE”

    APPENDIX B - “OBJECT PROGRAM”


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