E -PROCUREMENT AND ORGANIZATIONAL EFFICIENCY IN TORORO CEMENT LIMITED: ACASE STURDY OF TORORO CEMENT UGANDA

BY MUSUBIKA CAROLINE BSP/37471/121/DU

A RESEARCH DESSERTATION SUBMITED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE A WARD OF BACHELOR'S DEGREE IN SUPPLIES AND PROCUREMENT MANAGEMENT OF KAMPALA INTERNATIONAL UNIVERSITY

DECEMBER 2014 DECLARATION

I, Musubika Caroline, declare that this dissertation is my original work and it has never been submitted to any other university or other higher institution of learning.

-.~.,_ SIGNATURE ......

NAME; MUSUBIKA CAROLINE

REGN NO; BSP/37471/121/DU

1 1 DATE; .... JC~~: .. \... .•• ?.-.. .\...... ,-;½-.. • !: ...... APPROVAL

This is to certify that this dissertation by Musubika Caroline has been under my close supervision as university supervisor and is now ready for submission to college of economic and management for examination with approval.

SIGNATURE. ....,~al{··························

SUPERVISORS NAME; DR.KINYATA STANLEY.

DATE; ...... t.v(. ..t.~ .. M.f{J.: ......

ii DEDICATION

I wish to dedicate this research to my beloved parents Mr. Wambuzi Fred David, Mrs. Nabirye Tapeness, special person Mr. Tenya Fred, sisters Nakaziba Evelyne, Wambuzi Sharon, brothers Wambuzi Ivan and Wambuzi Isaac who have managed to facilitate me in financial assistance and brining me up, may the almighty God bless you all and reward you.

iii ACKNOWLEDGEMENT l wish to extend my sincere thanks to the almighty God for the wisdom I possess right away from the beginning to date. Great thanks to my parents for the care in various aspects financially, morally and being there for me always. I will live to honor them and my the almighty God reward them greatly. highly appreciate the contribution done by my beloved Sisters Nakaziba Evalyne Wambuzi Sharon brothers Wambuzi Ivan and Wambuzi Isaac for the contributions they gave me and the guidance offered to me, may them be rewarded abundantly .. would not have made progress if it was not my supervisor Dr. Kinyanta Stanely I appreciate the contribution and the time he rendered in the production of this works.

I would like to thank my friends Ovizio Irene, Kyabaguiiza Frida and others for their support and sacrifice they made to make me reach where I am. Without them I would have not made It to this far.

The editorial and printing work was done by Fred may the almighty God empower his wisdom more richly.

iv LIST OF ACCRONYMS / ABBREVIATIONS E-PROCCUREMENT; Electronic procurement. JIT: Just - in- time. EFT: Electronic Fund Transfer. PPDA: Public Procurement and Disposal of public Assets Act/Authority. MRO: Maintenance, Repair and Operation PO: Purchase Order PLCC: Pearson's Linear Correlation Coefficient EDI: Electronic Data Interchange ERP: Enterprise Resource Planning INCOTERM: International Commercial Terms ITB: Institute of Technology Blanchard town RFP: Request for Proposal SPSS: Statistical Package for Social Scientists

V TABLE OF CONTENTS Contents DECLARATION ...... i APPROVAL ...... ii DEDICATION ...... iii ACKNOWLEDGEMENT ...... iv

LIST OF ACCRONYMS /ABBREVIATIONS ...... v TABLE OF CONTENTS ...... vi LIST OFTABLES ...... ix

LIST OF FfGURES ······································································································································ X ABSTRACT ...... xi

CHAPTER ONE ...... 1 INTRODUCTION AND BACKGROUND ...... 1 1.0 Introductions ...... 1 1. 1. Background to the study ...... 1 1.1.1. Historical perspective ...... 1 1.1.2 Theoretical perspective ...... 2 I. 1.3 Conceptual perspective ...... 2

1.1.4 Contextual perspective ...... 3

1.2 Statement of the problem ...... 4

1.3 Purpose of the study ...... 4

1.4 Specific objective ...... 4

1.5. Research questions ...... 4 1.6Scope of the study ...... 5

1.6.1 Geographical scope...... 5 1.6.2 Content scope ...... S

1.6.3 Time scope ...... 5 I. 7 Conceptual framework ...... 6

1.8 Significance of the study ...... 7 1. 9 Definitions of operational key terms ...... 7

vi CHAPTER TWO ...... 9 LITERATURE REVIEW ...... 9 2.0 Introduction ...... 9 2. 1 E-procurement ...... 9 2. 1.1. E- procurement methods ...... 11

2.1.2 E- procurement process; ...... 13 2.1.3. Electronic payments ...... 15 2.2. Organizational efficiency ...... 16

2.2.1 Effective and Efficient Services ...... 17

2.2.2 Time Saving and Management...... 17

CHAPTER THREE ...... 23 RESEARCH METHODOLOGY ...... 23 3.0 lntroduction ...... 23 3.1 Research design ...... 23 3.2 Population ofthe study...... 23 3.3 The sample size ...... 23 3.4 Sampling procedures ...... 24

3.5 Data collection methods and instruments ...... 24

3.6 Data Quality control...... 25

3. 7 Data Analysis ...... 26

3.8 Ethical considerations ...... 26

3.10 Limitations of the study ...... 27

CHPTER FOUR ...... 28 PRESENTATION, INTERPRETATION AND ANALYSIS ...... 28

4.0 Introduction ...... 28

4.1 Biographic Features of the respondents ...... 28

4.1.1 Age ...... 28 4. 1.2 Sex ...... 29

4.1.3. Marital status ...... 29

4.1.4 Education Levels ...... 30

vii 4.1.5 Designations ...... 31 4.2 E-procurement...... 32 4.3 Organizational efficiency ...... 35 4.4 To assess the relationship between e-procurement and organizational efficiency in Tororo cement. .. 36

CHAPTER FIVE ...... 38 DISCUSSION OF FINDINGS , CONCLUSIONS AND RECOMMENDTIONS ...... 38 5.0 Discussion of the findings ...... 38 5.1. Conclusion ...... 39 5.2. Recommendation ...... 39

REFERENCES ...... 41 ! APPENDICE ...... 43 i APENDIX A; QUESTIONNAIRE ...... 43 I' APPENDIX B; INTERVIEW GUIDE...... 47 I APPENDIX C: A TIME FRAME ...... 49 ! ! APPENDIX D: STUDY BUDGET ...... 50 ! I

viii LIST OF TABLES

Table I: Age of responsibility ...... 28 Table 2: Sex of the respondents ...... 29 Table 3: marital statuses ofrespondents ...... 29 Table 4: Education levels of respondents ...... 30 Table 5: Designations of respondents ...... 31 Table 6: Showing e-tendering as a method of E- procurement ...... 32 Table 7: Showing Electronic Ordering ...... 33 Table 8: Showing Electronic procurement payments ...... 34 Table 9: Showing organizational efficiency ...... 35 Table 10: Pearson's linear correlation coefficient results fore-procurement and organizational efficiency ...... 36

ix LIST OF FIGURES

Figure I: Showing Conceptual framework ...... 6

X ABSTRACT The study was aimed at examining the relationship between the electronic procurement and organizational efficiency in private sector in Uganda in Tororo cement in Tororo as the case study. The study was based on the following main objectives which were to evaluate the E-procurement methods on organization efficiency in Tororo cement , to assess the level of organization efficiency in Tororo cement and to examine the effects of E-procurement methods on organization efficiency in Tororo. The study employed the cross sectional research design to explore the content pertaining the relationship between e-procurement and organizational efficiency given to Tororo cement as the area of focus. A sample size of I 00 respondents was obtained from the estimated research population of 134 respondents. Using solvents formula and the data obtained was computed using SPSS and person liner correlation was used to determine the relationship between e-procurement and organizational efficiency . The researcher made the following according to the findings, in e-procurement, 80% of most of the respondents strongly agree that they used E-procurement methods and also stakeholders enjoy the use of e- procurement payment methods in Tororo cement and in organizational efficiency. Most of the respondents also by 80% strongly agree that efficiently Tororo is willing to take a step in terms of development of e-procurement systems within the organization and effectively e-procurement is an essential element of cost and time saving by 80% . According to the pearson linear correlation findings, e-procurement significantly affects organization

Efficiency by r- value =0.355. The researcher made the following recommendations that people should be educated on the need of participating in the upcoming newly technologies for efficiency and sustainability of the organization achievements, all stakeholders should be trained on how to operate, repair any damages on the system and maintain it without first going to consult the manufactures for technical assistance hence ensuring that the electronic procurement systems are always performing well and leading to organizational efficiency.

xi CHAPTER ONE INTRODUCTION AND BACKGROUND 1.0 Introductions. This chapter discussed the background of the study, statement of the problem, specific objectives of the study , research questions, hypothesis , scope of the study, significance of the study and conceptual framework.

1.1. Background to the study. The background consists of four perspectives which include historical perspective, theoretical perspective, conceptual perspective and contextual perspective.

1.1.1. Historical perspective Tororo cement limited is a cement producing company whose head office is located in Tororo town , Malakis road in the eastern part of Uganda about 230kilomiters [140mi], from the capital Kampala. It is IO km before the Uganda/Kenya border town of Mbale. Access from Kampala is by an all-weather tarmac road. With mega plant/ factory in Tororo district. Tororo cement limited also has additional to the factories in Tororo, the company maintains a sales office at Mentropole house of Entebbe road , in Kampala and two warehouses, one in the Kampala suburb of Bweyogerere and the other at 6th street, in Kampala's indusial area . A smaller office primarily concerned with custom clearing and forwarding ts located at Malaba, at Uganda's international border with the republic of Kenya. And these also acts as customer service centers in addition to that of the plant in Tororo , and Tororo cement ls an organ of Lafarge cement, whose headquarters are in Paris , France , where the top hierarch is based. Lafarge cement 1s the world class construction manufacturer that has got both international and national operations. The company operates in countries like Uganda, Kenya, Tanzania, Rwanda, Burundi, Democratic republic of the Congo and south Africa and South Sudan among others in Africa and its clientele goes across many African countries who consume the services [end users] and include; organizational efficiency market Uganda , South Sudan, DRC, Burundi, Rwanda, Kenya, Tanzania, Northern Sudan, and many other members from the global . The core business of Tororo is cement production and selling and others like clinker trading,

1 aggregates, cravats, steel bars, galvanized wire, chain - link fence wire, corrugated iron sheets and steel nails.

1.1.2 Theoretical perspective. The resources based theory can be employed in e-procurement; this theory was developed by Lyson and Farrington. The theory emphasized the fact that each firm is characterized by its own unique collection of resources of core competences. It states that the sources of competitive advantage is the collection and explanation of distractive capabilities that are difficult to build and maintain, codify and make into recipes, copy and emulate and cannot simply be bought off the shelf.

1.1.3 Conceptual perspective. E-procurement in simple terms is the electronically sourcing for the materials and necessary equipment's and goods and services for the organization so as to operate. The whole process of acquiring such good and services done electronically such as e -bidding , then in reverse services providers to be, do e-quoting and e -tendering and contracts were awarded online by use of information technology/ electronic systems and this has been very key and proved efficient for any company or organization that has used such systems in their operations. Richard et al. [2009];

It's so imperative that every sector, organization ,company or even a vast body in any sort of operation use the various goods and services which in most case have to be bought or acquired from the producers. This has been enabled through use of such system that when goods and services are needed, the company simply post on its website and services providers are able to know through checking the web address time after time where they can even check the quoted prices against respective items and there after supply takes place. In the same context , payments for such goods and services supplied to such companies are also made electronically by use of EFT [Electronic fund transfer] and this eliminates the paper advert which perhaps would take long and be limited to some areas at a further distance. Dyer, J.H., P .Kale, and H. Singh. 82 [2004]; I 08-116.

2 According to Gretchen B. [201 OJ.A among the bodies that base their management and operations on procurement, we have Tororo cement limited and which in this case has the advanced systems and appropriate man power to manage the systems allocated to procurement department since it's the heart of the company's operation in terms of getting goods and services to use on daily routine . like in Tororo cement limited, procurement department even else wherein many organizations do sourcing of goods and services to use in their activities or operations.

1.1.4 Contextual perspective. As a company, it has purchasing departments [ procurement department] and hence has got defined suppliers to make the process complete . in such conduct, the suppliers equally come from both organizational efficiency and international areas like, procure IT equipment as computers from Malaysia, transport suppliers to regional level are got from Kenya, Rwanda and south Sudan, and then other transporters are organizational efficiencies from Uganda. Other services got from suppliers include; safety, stationary ,furniture ,clinker, lime , machinery, to mention but a few. We hence see all through the process of acquiring these goods and services and equipment's need a lot of engagement 111 terms of technologies such as use of advanced communication information systems like websites , internet , face book, twitter, and skipping and that is what Tororo cement limited has done to develop her suppliers and mean while cope up with the electronic process such that in the whole process they are used with the procedures and this has surely in one way or the other helped in realizing her dreams, K. C and laudon ,J.A[2006] Management information systems; managing the digital firm, prentice- hall among others, Tororo cement limited while mobilizing the inputs, goods and services and other critical resources, base their management and operations on procurement procedures as per the organizational procurement manual, which is largely related to PPDA[Public Procurement and Disposal of Public Assets Act] and which in this case has the wide expenditure and a wide budget allocated to procurement depaiiments since it's the heaii of the company's operation in terms of getting goods and services to use on daily routine.

3 1.2 Statement of the problem. Delay in delivery, low service turnover and poor quality were seen as the major difficulties the company used faced, for any organization or firm to remain competitive in the same industry, it must be able to serve its customers As and when they place orders. Firms like Tororo cement factory have encountered stiff competition from other competitor locally and internationally leading to decrease in business and hence reduced profits and sells. The adoption to e­ procurement may be a solution to solving customer complaints related to delay in supply of Tororo cement to achieve maximum organizational efficiency, hence the need for the proposed study that will approve the relationship between e-procurement and organizational efficiency relating to the three constructs namely just- in- time, e-sourcing, and e-ordering and organizational efficiency ofTororo cement limited

1.3 Purpose of the study. The purpose of the study was to examine the effect of e-procurement on organizational efficiency in Tororo cement limited. The organizational efficiency is to determine on how quality of output is realized with best service delivery to satisfy customer needs and how effective payments are ensured to achieve value for money while using e-procurement services.

1.4 Specific objective.

1. To evaluate thee- procurement methods on organizational efficiency in Tororo cement. ii. To assess the level of organizational efficiency in Tororo cement.

111. To examine the effects of E-procurement methods on organizational efficiency in Tororo cement. 1.5. Research questions.

1. How will the evaluations of e- procurement methods help to achieve the organization efficiency in Tororo cement?

11. How will the level of organizational efficiency be assessed in Tororo cement? iii. What are the effects of e-procurement methods on organizational efficiency in Tororo cement?

4 1.6Scope of the study 1.6.1 Geographical scope. The study was carried out in Tororo cement limited, Tororo Town, Malakis road in the eastern part of Uganda, 10kilomiters before the Uganda/Kenya border Town of Mbale, with a mega plant/factory in Tororo district Uganda and mainly focused on Tororo cement.

1.6.2 Content scope The study examined the impact of connection of e- procurement on organizational efficiency in Tororo cement limited where efficiency was determined from the quality of output of e­ procurement services and effectiveness of the time scheduled and the speed in the services hence customer satisfaction.

1.6.3 Time scope. The study was corded between July to December 2014 a period of five months because it was the time when researcher started to work on my dissertation.

5 1. 7 Conceptual framework. £-procurement as an Organizational efficiency as a

Independent variable Dependent variable

Quality • £-ordering • Lead time • £-tendering • Speed in the service • £-payment methods • • High quality of output • Resources • Reduced lead time • Ordering process > • Improved speed in the services

Intervening variable

• Poor quality • Very many orders • Unprocessed • Delays in the service

Figure 1: Showing Conceptual framework.

Explanation of the conceptual framework. The conceptual framework describes how the independent variable of £-procurement and the organization efficiency in the private sector in Uganda in Tororo cement limited link together. The £-procurement methods such as e -payment used by the financial department of Tororo cement limited, £-ordering and E-tendering used by the procurement department will improve on the speed in the service, quality and reduce lead time us111g the few intervening variables such as resources and ordering procedures hence organization efficiency is achieved. The E- procurement will lead on the hand to poor quality of output ,delays in the services and very many orders unprocessed if not well efficiency enhanced in Tororo cement thus leading to organizational inefficiency.

6 1.8 Significance of the study The study will be of importance in the following ways;

1. To organizations, the research will help the management of Tororo cement limited to understand the process of e - procurement and how it affects organizational efficiency.

11. To the public, the research and the findings collected acted as a source of motivation to various managers and other persons in appreciating the need for E­ procurement in their organization. iii. To the researchers; this future researchers used this work as a reference and a guide to their study. 1v. To the student, this study is a partial academic requirement leading to the award of a degree in procurement and supplies management of Kampala international university.

1.9 Definitions of operational key terms. E-procurement is the electronic acquisition of goods, services or supplies for an organization. It is also the use of requisitioning, sourcing, contracting, ordering and payments. Procurement refers to the acquisition of goods, services or works from the initial point to the final customer through all the production process with a view of reduction without compromising quality. E-tendering refers specifically to tendering that is based, at least in part, on the use of internet technology. E-ordering being with the issues of an order by a buyer and ends with the receipt of any order response from the supplier, by electronic means. E-sourcing is the process of obtaining bids from different suppliers via a single on line portal. E-auctioning is a tried and tested sourcing method that has many advantages over traditional RFQ process. E-information is a system which stores information from internal and external sources to facilitate better decision making.

7 Electronic payments are either debit or credit payment that are proposed entirely electronically, with the value passing from one bank account to another bank account

8 CHAPTER TWO LITERATURE REVIEW 2.0 Introduction. This chapter discussed E-procurement methods such as E-ordering, E-tendering and E - payment on organizational efficiency.

2.1 E-procurement. The independent variable and dependent variable of E - procurement and the organization efficiency in the private sector in Uganda in Tororo cement limited were E- procurement methods such as e- payment used by the financial department of Tororo cement, E- ordering and E-tendering used by the procurement department will improve on the speed in the service, quality and reduced lead time and evaluations of the E procurement methods enhance organization efficiency from the relationship assessed between the two variables. The effects examined include poor quality of output, delays in the services and very orders unprocessed if not well effectively enhanced in Tororo cement thus leading to organizational inefficiency.

E- Procurement is an essential element of cost savings, effective and efficient services in an organization. It impact on members, the chief Executive, the corporate management Team, staff, the public, suppliers and partners. Procurement refers to the acquisition of goods, services or works from the initial point to the final customer through all the production processes with a view of cost reduction without compromising quality.

According to Mitchell, George E. [2012]. procurement refers to the process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the voice for payment. 1f commonly involves purchase planning, standards determination, specifications development, supplier research and selection value analysis, financing, and price negotiation, making the purchase, supply contract administrating , inventory control and stores and other related function.

9 Management of the procurement process is increasingly becoming a source of organizational core competences and a means to build competitive advantage. This has been due to developments in today's business world, where lots of challenges have continued to emerge revolving around the issues of competition and how organizations can build their key strategic competences to stand out of the 'crowd'. Mitchell, George E. [20 I 2].

Its therefore very important to note , with the high value of goods and services or supplies being procured today, organizations have opted to transformation of the procurement system as from the traditional ways to modern systems of electronic procurement where the goods and services are being acquired via electronic procedures and processes and including the payment systems for such services and goods.

E-procurement is also known as electronic procurement. It is the electronic acquisition of goods, service or supplies for an organization. It is also the use of web-based technology to support the key procurement processes, including requisitioning, sourcing , contracting , ordering , and payment.

E-procurement is the use of electronic systems to procure goods, works and services improving the efficiency of the process and increasing opportunities for price reductions for any given organization and in our case Tororo cement limited. E-procurement provides various solutions like those issues that would delay the process and inefficiency and in return pays away to quicker and faster processes, such solutions include;

Complete " end to end " procurement. Systems that are integrated with financial back office systems [including e- tendering and e - auctions] Web based systems that enable ordering from approved catalogues over the internet procurement cards for ordering and payment, among others. Wing, Kennard, and Hager, Mark A [2004].

10 2.1.1. E- procurement methods. According to Herman, Robert D, and Renz, D avid 0. [2008]. In its broadest sense e - procurement involves electronic data transfers to supp01t operational, tactical and strategic procurement. E-procurement has therefore been around for much longer than the term itself which first came into usage after the establishment of the internet in the 1990s. from the I 960s until the mid-I 990s, e- procurement primarily took the form of electronic data interchange [EDI]. Now days, e-procurement is often supported by internet technologies and is becoming more prevalent. Those involved in the procurement function need to understand the e- procurement concepts and tools to provide input into their development, use, evaluation and refinement as a means of improving procurement efficiency and effectiveness. Herman, Robert D & Renz, David 0. [2008].

Procurement officers and managers can make a contribution to decisions about investments in, and configuration and use of e- procurement tools by; Having a general understanding of the various e- procurement applications. Identifying the procurement processes that are effectively supported bye- Procurement. Understanding the sources of benefit ofe- procurement. Identifying the risk associated with the adoption of e- procurement. Contributing to the development of e- procurement tools through identifying scope for e­ commerce supported process improvement. There are some forms /types and below are some of the common forms of e- procurement.

E-Sourcing According to Mitchell, George E. [2012], E- sourcing suppo1ts the specification phase; it

can be used to pre - qualify suppliers and also identifies suppliers that can be used 111 the selection phase. For suppliers the benefit is ; "marketing" and for the buying organizations the benefit is facilitating the sourcing of suppliers. The UN global market place [UNGM www.ungm.org l is an example of an E- sourcing tool.

11 E - Tendering. According to Richard et al. [2009], E-tendering suppo11s the selection stage and acts as a communication platform between the procuring organization and the suppliers. It covers the complete tendering process from resource evaluation via resource foundation planning to contracting, usually including support for the analysis and assessment activities; it does not include closing the deal with a supplier but facilitates a large part of the tactical procurement process. Suppliers; transparent selection process, reduction in [legal errors; clear audit trail; more efficiency in the tactical procurement process and improved , time management of tendering procedures. Some UN organizations such as United Nation Development Program [U.N.D.P.] and United Nation High Commission for refugees [UNHCR] have used E- tendering in the formulation of long-term agreements for vehicles, tents, motorcycles and pharmaceuticals through an in -house development tendering portal.

E - Auctioning According to McLaughlin, John A., & Jordan, Gretchen B. [2010], E-auctioning suppo1ts the contract stage. It enables the closing of a deal with a supplier if parties agree on price. They operate with an upward or downward price mechanism e.g. e - auctioning with upward pnce mechanism for the selling organization and e- reverse auctioning with the downward price mechanism for the buying organization. They can be made in accordance with traditional ITB/RFP. They are internet based using open or closed systems.

E-Orclering and web - based ERP. According to Hager, Mark A., & Frack, Tecl.[2004, E- ordering and web - based ERP is the process of creating and approving procurement requisitions, placing purchase orders, as well as receiving goods and services ordered, by using software systems based on the internet.

12 E - Informing. According to Mitchell, George E. [2012], E-informing is not directly associated with a stage in the procurement process; it is the process of gathering and distributing procurement information both from and to internal parties using internet technology. In accordance to Tororo cement limited the following forms are applicable m the following ways. E-sourcing suppo1is the specification phase; it identifies suppliers that can be used in the selection phase in the organization. E- tendering supports the selection phase; it facilitates the real and ITB/RFP activities, usually including support for the analysis and assessment activities. Herman, Robert D., &Renz, David 0. [2008] E-reverse auctioning support the contract phase; it enables closing a deal with a supplier most especially when Tororo cement factory is dealing with its suppliers. E-ordering and web- based ERP ts the process of creating and approving procurement requisitions, placing purchase orders, as well as receiving goods and services ordered, by using a software based on the internet. Herman, Robert D & Renz, David 0. [2008]. E-informing is not directly associated with a phase in the procurement process; it is the process of gathering and distributing procurement information both from and to internal and external parties using internet technology.

2.1.2 E- procurement process; In Tororo cement the process starts with the search for vendors and products and this encompasses e- catalogs, brochures, conventions, exhibits, telephone calls, and visits. This is the first phase of the procurement that was to entail the recruitment of the qualified supplier among others such that good, services and suppliers can be got in a more systematic order and steady manner. In this stage, there are advertisements for the best suppliers and this involves the categories, brochures, displays, phone communication to pass the information, and normally visiting the pre- qualified in the evaluation process to be able to compile the pre- qualification list. Etzioni, Amitia [ 1964].

13 Quality vendors. Which vendors we can do business with? Research firms, financial stability, credit history. Out of the pre- qualified list, they identify the best supplier and the reliable one that can be dealt with out a lot of challenges associated with supply. On this stage, the financial stability leads the other requirements and followed by experience of doing the same job and the reliability and availability of the service to be able to have goods supplied in time and in good order. Mitchell, George E. [2012].

Select a market mechanisms; private, public, and auctions exchange, Tendering system has a special process, in this level, the mechanisms are thought about such that the supplied goods and services will eventually have market more especially the outputs of the inputs as stated above. Compare and negotiation; price, financing, delivery, quality etc. This is the level of negotiating the values and rates in comparison to the market prices and the quality of such intended procurement. The source of funding on the organization's side 111 terms of payments for the intended goods and services to be supplied and execution of the plan in which the deliveries schedule are go111g to be while matching the quality agreed upon. It is important to note that, while negotiating the prices there is comparisons of more than one supplier in the market for value for money concept and the models for quality comparisons. Mitchell, George E. [2012].

Make a purchase [individual or committee]. Have a contract, arrange payments. At this stage, there is mutual understanding between the parties and only can be acknowledged through contract formation and planning for payments.

According to Richard et al. [2009]; initiate a purchase order [PO] Electronic form or trigger ready. the electronic purchase order here to be in readiness for the supply and or arranging for the deliveries to be made.

Arrange a pick up or receive shipment check shipping documents, billing quality. The warehouse or storage space here is arranged and this is done by verifying the shipping documents to be able to know the quality and specifications.

14 Make payment approve payments. Arrange money transfer. The process of approval commences with attached receipts of goods and services and the electronic payments are then made to suppliers(s) it is impotiant to note that on our case of Tororo cement, such process here above apply the best way as well here above explained and in a bid to fulfill the procurement process, the procurement department must follow the exact procedures and this give the organization the right value for money in terms of quality relative price and appropriate delivery time taking in consideration that time is a resource in supply chain management and hence respect of [ JIT] just - in- time. Richards et al. (2009).

2.1.3. Electronic payments. According to Jordan, Gretchen B. [2010].payments on the net are essentially electronic version of the traditional payments system of everyday cash, cheques and credit cards. The fundamental difference between the electronic payment system and the traditional one is that everything is digital and designed to be handled electronically. With the increasing commercialization of the net and the popularity of the web , consumers and business are both looking for ways to conduct business over the net efficiently and effectively. The main difference is that everything over the internet using the customers personal computer.

The methods that have been used in procurement for example electronic payment cards, smart cards , Electronic cash, and wireless payments e-purse electronic cards, payments made electronically at kiosks, person payment methods, loyalty cards, mobile payments and others that have enabled the process of e - procurement implementation. The payments are done electronically through use of network and systems that will not allow the physical and manual handling of the process and in comparison of the two, the electronic payments are easy, smati, safer and faster compared to manual payments systems which are slow, risky and lose. It is in this note that e -procurement has been adopted by many organizations, Tororo cement being a center of our focus. Jordan, Gretchen B. [2010].

In a bid to have the electronic payments fully and smartly implemented , there must be the principles that guide the processes and such as privacy, authentication, integrity and

15 non - repudiation. Privacy on the other hand, is all about keeping the information confidential like credit card number, account numbers, transaction balances and others which must remain disclosed to un intended members, authentication being able to verify the one doing payment with the credit card and also be able to identify the digital signature for electronic correspondence and digital certificate to establish the company's identity. Integrity is yet another principle that does with the originality and non-altered information, and then non-repudiation that ensures that the contact is respected and non can disclaim him/self from the transaction. Hager, Mark A., & Flack, Ted. [2004].

2.2. Organizational efficiency. A clear, comprehensive and efficiency procurement strategy process has been defined as; "the whole process of acquisition of goods , services and works from the main source, third parties and in- house providers and speed in the services, quality and reduced lead time are attained. Kroll, M., P. Wright, and R .Helens. 20 [I 999]; 375 -384.

According to Mitchell , George E.[2012] .A earlier stated here above that efficiency of purchasing performance is key to organizational efficiency, this basically mean that the procedures and processes are developing in sense that transformation is being realized from traditional procurement of using ancient procedures to electronic procedures called e­ procurement where the suppliers get informed via technological systems by internet , websites, twitter , face book and others about the requirements by the company, bidding is done by the same processes and for the suppliers who win the contracts are to dispatch goods and services to where they are necessary.

To clarify this further, even while doing global sourcing, or international procurement, one does not need to travel across all those areas in the Diaspora but rather can use the electronic advertisement for what ls required and then those who can meet the requirements can post their applications via the web site and meanwhile guided by the INCOTERMS International Commercial Terms ] to deal with issues concerning deliveries of goods after successful winning of supply contracts and or serving the contract. Mitchell, George E. [2012].

16 2.2.1 Effective and Efficient Services. According to Wing, Kennard, &Hager, Mark A. [2004]. With e- procurement ,the organization is able to take a step in terms of development since there is cost saving by using the little expenses and buying items in a more systematic manner and supply chain management . Good supply chain management is essential for a successful company. Effective management of the supply chain keeps costs down. This is primarily achieved by ensuring that communication can flow freely along the chain. The importance of managing the physical supply chain effectively is highlighted by a report concluding that distribution is likely to become a major problem for companies selling online. It is important to note that, supply chain e-procurement uses various techniques to improve the delivery of goods between supplies and their customer and these supply chain application include; stock control, just - in- time [JIT ]delivery, transportation, warehouse management.

E- procurement being the electronic sourcing for the materials and necessary equipment's and goods and services for an organization so as to operate in a required manner with enough resources, does not limit any type of procurement like to only open procurement but rather can be used to any type of procurement even limited procurement system where the prequalified members can only be copied in the memo meant to look for the purely qualified contractor. it is simply doing the procurement procedures electronically regardless of which type of the process one ought to use as deemed fit to suit the purpose hence applicable for all purchases and thus cost friendly and effectiveness. Wing, Kennard, & Hager, Mark A. (2004].

2.2.2 Time Saving and Management. According to Wing , Kennard , & Hanger, Mark A (2004]. While procurmg electronically, many sorts of activities are integrated together and help in time target and achieving of the objectives as set for a given period of time. It should be noted that in e- procurement, the process is much more advanced that proper procedures without unnecessary wastage of time is highly emphasized in many organizations today for the strict target fulfillments and respect of the deadlines. This also goes to the delivery time and considers JIT Oust in time] delivery concept. It is now common in a range of business sectors, such as the automotive

17 industry. Management companies only wants to have parts delivered, as they are required or when new goods are needed.

Work to shorter lead time. Keep their stock levels down thereby minimizing the amounts of capital tied upon the shelves minimize the amount of [often very expensive warehousing needed improve the relationship between the supplier and the customer. Because of the above, lower the cost of the manufactured goods. These all show that the time management is highly respected and cost, quality, customer relationship and effectiveness in the organization. With e-procurement , organizations are able to build on the tight relationship with their suppliers since the system maintains records and the prequalification list of supplies is kept within the system Wing, Kennard ,& Hanger, Mark A. [2004].

It is further important to note that, while talking of time management, the components on the other hand that enables such electronic procurement successful, and timely for the deadlines, include control of the software, hardware, database, and the manager of all those components who is people [a person] to direct all these other components to be able to operate in integrated manner to achieve one set goal in a given period of time.

According to Mitchell, George E. [2012. In a bid to achieve this process of e -procurement, there should be supplier development. It is the transformation of the process or procedure via the empowerment of those who own such resources , goods and services in form of tanning , appraisals , involving them in series of business sessions , and also giving them performance bonuses after hitting their set targets in expected time such that while serving their clients [Companies] they are able to use this advanced technology of e­ procurement for efficiency needs through consultation and determining the right mix of cost/quality. Efficient contracting means that each tendering opportunity attracts sufficient market interest to establish a competitive number of bids. A wide analysis of the options available can lead to an innovation approach to market. We however see in few cases the question of ineffectiveness from the Tororo Magazine

2013 official sales 111 the methods and processes of procurement in Tororo cement

18 limited more especially in the transition from traditional to e-procurement and somehow is attributed to speed in which technology is growing that in the process, some fraud is likely to happen by un authorized members who access the company's database and or even reading other people' bidding documents via the internet and web sites as long as they can gamble with technology and access the password . other challenges are attributed to the market nature for example available market prices , production levels, economic situation, and competition of the service consumption [demand for services ] in the open market, verification procedures since the process is electronic, payment and terms and conditions of supply.

In a bid to solve the challenge here highlighted above in the purchasing department across the global , today the population worldwide is trying the global speed of technology and advancing with rate such that they compete with those that would emerge with manipulation techniques to the e- procurement technology. This has equally moved to the other approach of e- bidding and or e-tendering that has quickened the process by time and increased the bidding and tendering coverage in terms of areas of operation. This has encouraged the able suppliers go across the global servicing various contracts given to them by exploitation of such new technology, Mitchell, George E. [2012].

According to Ogden, Tim, Nil, [2009]. in the corporate strategy providers the framework for the corporate procurement department to engage for .the business. The procurement services encourage diversity and competition through engagement with all potential suppliers. Adopting best practice as it develops and participation in national and regional forum and appropriate professional bodies to help Tororo cement limited, benchmark its process against the latest innovations and thinking, leading to improved efficiency. Structure for procurement should; recognize the strategic e- procurement role of members by giving the responsibi Iity for procurement to the procurement manager for resources raise the profile of the function to a strategic level. Ensure good communication and the sharing of good practice; be cost effective and able to demonstrate how it adds value to the organization have appropriate specialist skills to meet the business needs of the organization [Tororo cement limited ].where appropriate move

19 from adversarial contracts to paiinership working allows customers to use the minimum amount of effmi to get the goods and services they want, provide professional procurement help when required, provide a corporate procure to pay process not manage supplies and services budgets directly but negotiate effective procurement agreements as part of a multifunctional team. Perla. Karnofsky, [2009].

According to Holden, Bornstein, Howard, [2009]. Definition and communication of services, need day to day operational contract management drafting of technical contract specifications definition of service and quality levels Facebook on supplier performance raising orders against contracts providing client approval for sigh off of procurement plans supporting corporate procurement in contract negotiations to ensure that agreements accurately reflect service needs. The corporate procurement service can negotiate procurement plans annually with service areas which detail the procurement service to be offered to be that area of service provision in the authority .As priorities change it can be possible to renegotiate these plans in line with business needs and as the planning process will be a two way mechanism used for managing demand on the procurement services and for testing performance against agreed targets.

According to Hager, Mark A., & Flack, Ted. [2004]. E-procurement is an essential element of cost saving, effective and efficient services in an organization. It impacts on members, the chief Executive, the corporate management Team , staff, the public, supplies and partners. A clear, comprehensive and effective procurement strategy process has been defined as; " The whole process of acquisition from third parties and in-house providers and covers goods, services and works. Kroll, M., Wright, and R. Heiens. 20(1999]; 375-384.

Such goods and services procured are very vital for any company or organization to operate. It's so imperative that every section, organization, company or even a vast organization in any sort of operation use the various goods and services which in most cases have to be bought or acquired from the producers. This literally means that, all organizations do procurement in one way or the other and with the current technology, majority of such

20 organizations are going electronic procurement. Dyer, P. Kale, and H. Singh. 82[2004]; 108- 116. According to Jordan, Gretchen .B. [2010]. In electronic procurement process world over, the provider and or [a contractor] some obliged for making deliveries or delivery of agreed goods and services and or equipment's with the defined procedures based on the organizational process and or Inco terms, which normally include among other things; the terms of delivery of such goods and services, terms of payments and period of expected deliveries after supplying or dispatching data.

All the above are recognized when you put in consideration the information system development through training both suppliers and company members about the e­ procurement system, technology , policies and of what use, the agreement content, the procedure intentions, the relationships they have, this draws the objectives to be more clear and hence can achieve the most appropriate strategy of procurement and supply. In Tororo cement limited the service providers are always called upon and get some training about the e- bidding, web based procurement, the e-procurement supply chain and terms, electronic procurement process and terms of electronic payments such that they are able to supply in time without manipulating the agreement. Hager, Mark A., & Flack, Ted. [2004].

Although the authors seen above in the literature review have talked alot about e-procurement but to me I see some gaps or issues that they did not talk or hint about as stated below. Electronical data interchanges; this helps so much in the procurement of goods, it deals more in the information communicated during procurement that it does with the act of linking buyers and suppliers. By definition electronic data interchange is the electronic exchange of business involving purchase orders, invoices, bills of landing, inventory data, and various types of confirmations between organizations or trading partners is standardized formats. EDI also is used with individual organizations to transfer data between different divisions or departments such as finance, purchasing and shipping.

21 More important EDI involves business transaction, individuals, consumers do not directly use EDI to purchase goods or services and it involves transaction between computer or data base not individuals.

Online market place. It brings many buyers and sellers together in an on line environment and function as an intermediaries between the 2parties. Online market place existed for many different industries to consumer packaged goods and interior design. The cost for participating in an online marketplace varied. Online market place producers add value to the procurement process by offering various services ranging from inventory management and process improvement to tracking shipment and arranging financing; in additional to adding value an on line market place can also simplify the process procurement.

22 CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction This chapter deals with the practical pait of the study. It shows the methods, techniques, procedures, and designs that were used in the process of investigating the problems. It includes; research design , study population, sampling design, measurement of variables , control of extraneous variables, sources of data, data collection tools, data quality control, data processing and presentation.

3.1 Research design. The researcher in the case study used a descriptive and cross-section researcher design to examine the relationship between E-procurement and organizational efficiency in private sector in Uganda in Tororo cement. Both a quantitative and qualitative approaches was used in this study[Hager ,Mark A 2004]. Comments from respondents in the questioners was captured and complied, while data from the questionnaires was analyzed statistically to establish the correlation between the variables of the study.

3.2 Population of the study. The study encompassed 25 suppliers , 15 staff and 94 customers of Tororo cement factory, which comprised a total target population of 134 people.

3.3 The sample size The sample size of the study was I 00 respondents as the determine using Slovene's formula in 1978 [Mitchell ,George E.) which states as follows; From n= N 1+Na2 Where n was the sample size, N stands for population and was 0.05 level of significance. n = 134 1+ 134(0.05)2

23 11 = 134 1+ 134(0.0025)

11 = 134 1+0.225

11 = 134 1.335

n = 100

3.4 Sampling procedures. The study was conducted using stratified sampling to reduce costs and the time of doing research and to increase the degree of accuracy of the study. The researcher set a selection criterion, where respondents were selected basing on their position/kind of job they do. A list of respondents was obtained from mangers in their respective departments to act as the sample. Strata were made according to respondents level of operation, in the organization . There after a sample was obtained from each of the strata using convenient sampling.

3.5 Data collection methods and instruments. The researcher used questionnaires and interviews methods, the researcher gave all respondents an equal opportunity to participate in the study and also decides on whom to include in the sample respectively. It was to collect focused information by selecting typical and useful cases only and each respondent was purposively selected basing on gender, tribal or religious affiliation. Both primary and secondary data was to be used in the study.

Primary data This was obtained through administration of questionnaires, observation, and interview with the organizational targeted population ofTororo cement limited.

24 Data collection methods Questionnaires; were used to enable the researcher obtain the necessary information about the variables of the study. Questionnaires were self-administered by the researcher and collected personally from the respondents. The choice of questionnaires as instruments of data collection was because they provide a wide range of information within a shorter time and eliminate interview bias.

Interviews ;There were used in the procurement office which involves the use of structured interview guides with questions about the variables of the study that were accommodated in the questionnaires to elicit the necessary information. For customers [product end users] members an informal approach was used to obtain information from them in a relaxed atmosphere while noting down important information from the conversation. The interview technique was preferred because it enables the researcher to get firsthand information from the respondents.

Secondary data. This was basically for reference purposes .It was obtained from data sources which are relevant to the study, such as text books, newspapers ,journals and the internet.

3.6 Data Quality control. The instruments were designed in such a way that only data relevant to the study was generated, Irrelevant data was ignored.

Data Gathering procedures Before data gathering Upon accomplishment and acceptance of the researcher proposal, the researcher obtained an introductory letter from the college of applied economics and management of Kampala international university seeking for permission from the management of Tororo cement limited management to allow his access respondents to participate in the study

25 During data gathering. Due to the nature of work and busy schedule of some prospected respondents, the researcher through managers and supervisors scheduled an appointment for such respondents. The researcher were available to give necessary explanation on some questions where need arise. Then the researcher carried out a pilot study before the actual researcher to check feasibility of the research instrument in order to make necessary improvement and adjustments in the tool and to avoid time wastage. The researcher also made use of secondary data for reviewing available relevant texts books, journal articles, periodicals, manuals dissertation and publication.

After data gathering After two weeks, data was collected through questionnaires which respondents returned back to the researcher for data analysis. Completed [SAQs] are coded, edited, categorized and entered into a computer for statistical package for social scientists [SPSS] for data processing and analysis.

3.7 Data Analysis Data on completed [SAQs] was edited, categorized and entered into a computer for the statistical package for social scientists [SPSS ]which were summarized by using frequency and percentage to analyze data on respondent's profile. Pearson's linear correlation coefficient [PLCC] was used to establish whether there was a significant relationship between e­ procurement and organizational efficiency. The 0.05 level of significance was used to determine the strength of the relationship between independent and dependent variables.

3.8 Ethical considerations To ensure that ethics was practiced in this study as well as at confidentiality for respondents and the data provided by them, the following were done ; (a) all questionnaires to be coded; (b)the respondents were requested to sign the informed consent ; (c) authors quoted in the study was acknowledged within the text through citation and referencing; (d) findings to be presented in a generalized manner.

26 3.10 Limitations of the study.

The measurement scales that were used in this researcher were adopted from previous studies on the research variables which studies have been conducted mostly in developed nations where socio-economic settings were characteristically different from the region of analysis.

Some respondents were un willing to show cooperation in filling questionnaires. This was due to a number of studies that had been done on the institution and respondents were reluctant to give out any information for fear of implications. However the researcher got an introductory letter from the university assuring respondents of confidentiality of the information and was thus accepted to carry out a research The target respondents through accessed took a lot of time filling the questionnaires which impacted on the time taken in the field and the subsequent final response rate.

27 CHPTER FOUR PRESENTATION, INTERPRETATION AND ANALYSIS 4.0 Introduction This chapter covers the analysis, presentation, interpretation and discussion of the findings of the study. The results were analyzed and presented in themes according to the objectives of the study and research questions.

4.1 Biographic Features of the respondents This was aimed at establishing the biographic features of respondents and to assess whether they had a relation with the concept of the study.

4.1.1 Age. This was aimed at establishing the age distribution of the respondents to examine how age related to the usage and operations of the e-procurement system. Table 1: Age of responsibility. Response Frequency Percentage(%) Below 20years 02 05 20-30 years 11 16 31-40 Years 56 47 41-50 years 25 24 51 and above years 06 08 Total 100 100 Primary source 2014

From the study findings, 5% of the respondents were below 20 years of age, 16% of the respondents were between 20 to 30 years of age, 47% of respondents were between the ages of 31 to 40 years, 24% of the respondents were between the age of 41 to50 and only 8% of the respondents were 5lyears and above in age. The variation in age distribution was attributed to the fact that the sample was selected randomly hence covering all age ranges however the younger people and old people were

28 few due to their limited distribution in the general population that form the entire organization network population.

4.1.2 Sex. This was intended to find out the sexual distribution of respondents in the study sample. Table 2: Sex of the respondents Responses Frequency Percentages (%) Male 62 61 Female 38 39 Total 100 100

Source; Field research, 2014 From the study findings, 61 % of the respondents were male and 39% of the respondents were female. The variance in percentages was as a result of the fact, that men [males] were highly involved in matters concerning industrialization and more especially in such cement producing industries and hence more employed and best dealers in cement selling business and supply of the equipment's to the organization that their counterpart female.

4.1.3. Marital status This was aimed at finding out the marital status of respondents and how this characteristics influenced the study results Table 3: marital statuses of respondents Responses Frequency Percentages(%) Married 50 47 Single 35 32 Divorced 03 05 Widowed 12 16 Total 100 100

From the research results, 7% of the responses showed that, 47% of the respondents were married, 32% of the respondents were single, 05% of the respondents were divorced and

29 16% of the respondents were widowed. This was an indication that married people were highly involved in the new innovations and use of new technology like electronic system in various activities and embracing the e-procurement methods and other technological development projects. Married people took up the responsibility to ensure that new technology is welcomed with passion and involve themselves in it to ensure efficiency on an organization.

4.1.4 Education Levels. This was aimed at finding out the education levels of respondents that- participated in the study.

Table 4: Education levels of respondents. Responses Frequency Percentages (%) Tertiary level 66 71 Secondary level 29 27 Primary level 05 2 Never been to schoo I 00 0 Total 100 100

Source; Field research, 2014 From the research findings, 7 I% of the respondents had finished tertiary education, 27% of the respondents were of secondary level, 2%of the respondents were of primary level and noon never been to school. This however, indicated that all categories of people in Tororo cement participated in ensuring the applicability of e- procurement project in the organization through the educated took the highest responsibility and were more informed about how to use the technology, monitor and evaluate the suitability of such e-procurement technology and the usefulness in an organization.

30 4.1.5 Designations This was aimed at establishing the designations of the respondents that participated in the study.

Table 5: Designations of respondents Responses Frequency Percentages(%) Management level 15 17 Supply chain team 30 27 Other departments 05 02 Suppliers 32 31 Businessman [customers] 18 23 Total 100 100

Source; Field research, 2014 From the study results, 17% of the respondents were line managers from the organization of the study including logistics manager, procurement manager, sales manager, financial manager, customer service manager, depot managers and deport supervisors, and customer service supervisors, 27% of the respondents were members of department of supply chain team who dealt directly with the operation of the e-procurement, 2% of the respondents were members of other user departments, 31 % of the respondents were suppliers, 23% of the respondents were business people. This shows that a wide range of people participated in the study which helped the researcher to collect a wide range of information and the different views advanced by the different respondents on the study problem

31 4.2 E-procurement Table 6: Showing e-tendering as a method of E- procurement

:ement on E-tendering Strongly Percentage Disagree Agree Agree they any e-tendering used in Tororo cement 60% 30% 10% :urement depatiment e-tendering selected by the procurement department 80% 10% 10% our organization have helped in the achievement of ity in Tororo cement nclering as a method has enabled an organization like 80% 20% 0% Jro cement to evaluate the best supplier for the 111ization by the procurement department

"e holders like (customers, suppliers, members of staff) 70% 30% 0% t so much towards e-tendering of e-procurement used ororo cement - :e are challenges encountered when using e-tendering 25% 15% 60% , ororo cement Source; primary data 2014 From the findings in the table above, 60% of the respondents strongly agreed, 30% agreed and I 0% disagreed that they are e-tendering used in Tororo cement procurement depatiment, 80% strongly agreed, I 0%agreed and I 0% disagreed that the e-procurement forms selected by your organization have helped in the achievement of quality in Tororo cement, 80% strongly agreed and 20% disagreed that e- tendering as a method has enabled an organization like Tororo cement to evaluate the best supplier for the organization by the procurement department, 7% strongly agreed, and 30% agreed that stakeholders like [ customers, suppliers, members of staff] react so much towards e-tendering of e-procurement used in Tororo cement and lastly 25% of the respondents strongly agreed, 15% agreed and 60% disagreed that there are challenges encountered when using e-tendering in Tororo cement.

32 Table 7: Showing Electronic Ordering Statement one-ordering Strongly Percentage Disagree Agree Agree There are e-ordering used in Tororo cement to reduce lead 60% 30% 10% time used by procurement department These e-ordering are easily implemented in your 80% 10% 10% organization [ Tororo cement] by the procurement department - These e-ordering are important in achieving the 80% 0% 20% organization objectives in Tororo cement There are challenges encountered during the implementation 30% 0% 70%

of e-ordering Ill Tororo cement by the procurement depaitment

There is sustainability of e-ordering Ill private sectors 60% 25% 15% like T0roro cement

Source; Primary data 2014

Basing on the findings from the above table 60% responded strongly agree, 30% agree and 10% disagreed that they are e-ordering used in Tororo cement to reduce lead time used by the procurement department, 80% strongly agreed, 10% agreed and 10% disagreed that these e-ordering are easily implemented in your organization [Tororo cement] by the procurement department, 80% strongly agreed, 20% disagreed that these e-ordering are important in achieving the organization objectives in Tororo cement, 30% strongly agreed, 70% disagreed that there are challenges encountered during the implementation of e-ordering in Tororo cement by the procurement department, 60% strongly agreed, 25% agreed and 15% disagreed that there is sustainability of e-ordering in private sectors like Tororo cement.

33 Table 8: Showing Electronic procurement payments Statement on e-payment Strongly Percentage Disagree Agreed Agree There are e-procurement payment methods like credit 60% 30% 10% cards, smart cards, electronic payment cards used m Tororo cement as an organization by the finance department

Stakeholders are enjoying the use of smart cards as an 80% 10% 10% e-procurement payment methods used in Tororo cement to achieve speed in the services E-procurement payment methods are handled carefully 70% 20% 70% in Tororo cement as an organization to achieve speed m the services by the financial department Stakeholders especially suppliers are complaining about 10% 20% 70% the e-procurement payment methods used m Tororo cement There are challenges faced when carrying out e- 10% 5% 85% procurement payment method m Tororo cement by the financial depatiment

Source; Primary data 2014 From the findings in the table above, 60% strongly agreed, 30% agreed and 10% disagreed that there are e-procurement payment methods like credit cards, smart cards, electronic payment cards are used in Tororo cement as an organization by the finance department, 80% strongly agreed, I 0% disagreed that stakeholders are enjoying the use of smart cards as an e-procurement payment method used in Tororo cement to achieve speed in the services, 70% strongly agreed, 20% agreed, I 0% disagreed that e-procurement payment methods are handled carefully in Tororo cement as an organization, I 0% strongly agreed, 20% agreed, 70% disagreed that stakeholders especially supplies are complaining about the e-procurement payments methods used in Tororo cement , I 0% strongly agree, 5% agreed

34 and 85% disagreed that there are challenges faced when carrying out e-procurement payment methods in Tororo cement by the financial depatiment.

4.3 Organizational efficiency Table 9: Showing organizational efficiency. tatement Strongly Agree Disagree vith e-procurement, the Tororo cement is able to take a 80% 20% 0% tep in terms of development since there is cost saving by sing the little expenses and buying items in a more ystematic manner and supply chain management. iood supply chain management in terms, quality, speed in 70% 30% 0%

1e services and cost reduction IS essential for a .1ccessful organization like Tororo cement.

OU ensure that there are any sort of activities integrated 80% 20% 0% 1gether and help in time target and achieving of bjectives of an organization like Tororo cement -Procurement is an essential element of cost savings, 80% 20% 0% ITective and efficiency services in Tororo cement by the rocurement department ou ensure that there is organization effectiveness 60% 40% 0% ttained when implementing e-procurement in Tororo ~ment by the procurement depaiiment -

Source; primary data 2014 From the table above, 80% of the respondents strongly agreed while 20% agreed that with e-procurement, Tororo cement is able to take a step in terms of development since there is cost saving by using the little expenses and buying items in a more systematic manner and supply chain management, 70% strongly agreed while 30% agreed that a good supply chain management is essential for a successful organization like Tororo cement, 80% strongly agreed, 20% agreed that there are any s01i of activities integrated together and help in time target and achieving of objective of organization like Tororo

35 cement, 80% strongly agreed, 20% agreed that e-procurement is an essential element of cost savings effectiveness and efficient services in Tororo cement by the procurement department, 60% strongly, 40% agree that there is organizational effectiveness attained when implementing e-procurement in Tororo cement by the procurement department.

4.4 To assess the relationship between e-procurement and organizational efficiency in Tororo cement. Basing on this, the researcher stated a null hypothesis that there is significant relationship between e-procurement and organizational efficiency in Tororo cement limited . To achieve this last objective and to test this null hypothesis, the researcher corrected the means for aspects of e-procurement and those on organization efficiency using the Pearson's linear correlation coefficient, as indicated in table below. Table 10: Pearson's linear correlation coefficient results fore-procurement and organizational efficiency. Variable correlation R-values Sig Interpretation E-procurement vs organizational .355 .000 Significant relationship efficiency E-tendering vs organizational .339 .000 Significant relationship efficiency

E-ordering VS organizational .31 l .ooo Significant relationship efficiency e-payment VS organizational .182 .000 Significant relationship efficiency Source; primary data 2014

The person linear correlation results 111 table 6 above indicate that e-procurement significantly affects organizational efficiency by r-value=o.355, in e-procurement, payment has an impact on organizational efficiency with a r-value of 0.182, suggesting that e­ procurement payments contribute over 18% towrds variations in organization efficiency, e­ ordering has the largest impacts of [r-value=0.311 ], and, lastly E-tendering [r-value=,0.339]. This implies that for Tororo cement limited to improve its organization efficiency and flourish, the administrators or managers in Tororo cement or any private sector should

36 come up to emphasize e-procurement process, followed by e-procurement payment and e­ procurement methods should be hardly thought of if they want to boost organization efficiency in Tororo cement.

37 CHAPTER FIVE DISCUSSION OF FINDINGS , CONCLUSIONS AND RECOMMENDTIONS

5.0 Discussion of the findings

E-PROCUREMENT E-tendering from the findings on organizational efficiency most of the respondents strongly agreed that e-tendering have a great impact on organization efficiency of Tororo cement limited as seen by 80% responses from the majority of the respondents.

E-ordering Basing on the findings from e-ordering these were found to have a moderate effect on the organization efficiency in terms of lead time and they were found to be very vital to the procurement department in Tororo cement limited.

E-procurement payments From the findings on e-procurement payments most respondent strongly agreed that e­ procurement payments have a very big impact on organizational efficiency especially 111 terms of speed in the services in the financial department of Tororo cement factory.

ORGANIZATIONAL EFFICIENCY Efficiency Basing on organizational efficiency, 80% of the respondents strongly agreed that with proper use of e-procurement in Tororo cement the organization is most likely to be efficient vi a its costs and quality in terms of output.

Effectiveness The findings on organizational effectiveness was found out that Tororo cement is very effective in its operations most especially when it comes to time saving in the delivery of its customers products.

38 The Pearson linear correlation results in table 6 above indicate that e-procurement significantly affects organizational efficiency by r-value =0.355.in e-procurement, payment has an impact on organizational efficiency with r-value of 0.182, suggesting that e­ procurement payments contribute over 18% towards variations in organization efficiency, e­ ordering has the largest impact oflr-value=0.311 ],and lastly E-tendering[r-value=0.339]. This implies that for Tororo cement limited to improve its organization efficiency and flourish, the administrators or managers in Tororo cement or any private sector should come up to emphasize e-ordering, followed by e-procurement payment and e-tendering should be hardly thought of if they want to boost organization efficiency in Tororo cement limited.

5.1. Conclusion The study was intended to find out the fundamental relationship between e-procurement and organizational efficiency in Tororo cement. The study therefore concluded that according to the findings e-procurement, most of the respondents strongly agree that they do e-tendering and, e-ordering and also take holders enjoy the use of e-procurement payment methods in Tororo cement and there is organizational efficiency, most of the respondents also strongly agree that efficiency, Tororo is willing to take a step in terms of development of e­ procurement systems within the organization and effectively e-procurement is an essential element of cost and time savings solvens formula and computed using SPSS and Pearson liner correlation was used to determine the relationship between e-procurement and organizational efficiency. Other words, private organizations like Tororo can't attain the organizational objectives without the existence of e-tendering, e-ordering, e-procurement payments methods.

5.2. Recommendation. From the study findings the following recommendations have been drawn; The research does not and cannot guarantee that the study was completely exhausted. In any case, the scope of the study was limited in accordance with one organization and space, and objectives. It is therefore, suggested that a national research covering the whole public entities across the country be undertaken.

39 Key stakeholder[customers] should not only be taken as objects in the process of system application of electronic procurement by not only involving them in data collection but be taken as subjects in the process and be involved in each and every stage of the applicability ofthe system.

Stakeholders should be empowered through capacity building and sensitization programs so that they can be equipped with the knowledge and skills relevant in the operations of electronic system as e-procurement. This can be done through mass media and workshops that target the interest groups of people.

To ensure sustainability of electronic procurement, all stakeholders should be trained on how to operate, repair any damages on the system and maintain it without first going to consult the manufactures or funders for technical assistance hence ensuring that the electronic procurement systems are always performing well and leading to organizational efficiency.

40 REFERENCES Competitive strategy; Techniques for Analyzing industries and companies. New York; mugenda and mugenda; variables in conceptual frame Work model [2003], Dyer, IH. P.Kale, and H.Singh. "When to Ally and When to Acquire" Harvard Business Review 82(2004]; I 08-I I 6. Etzioni, Aminitia. [1964]. Modern Organizations. Englewood Cliffs, NL; Prentice­ Hall. Herman, Robert D., & Renzo, David 0.[2008]. Advancing Nonprofit Organizational Effectiveness Research and Theory; Nine Theses. Nonprofit Management & E-procurement, 18[4], 399-415. Kaplan, Robert S., & Grossman, Allan S.(20 I 0). The Emerging capital Market For Nonprofits. Harvard Business Review (October), 111-118. Kroll, M., P. Wrigt, and R.Heiens. " The contribution of product quality to Competitive Advantage; Impacts on systematic variance and unexplained Variance in Returns." Strategic management Journal 20 [ I 999]; 375-384. Limits Nonprofits Effectiveness Nonprofit Overhead cost project; Urban Institute center on Nonprofits and philanthropy and Indiana University Center on philanthropy. Laudon, K.c. And Jaudon, I.A [2006] Management information systems; Managing the digital firm, prentice-Hall Digman, I .Strategic Management. Houston; Dame, 1997. Mitchell, George E. (2012). The construct of Organizational Effectiveness; Perspectives from leaders of International Nonprofits in the United States. Nonprofit and voluntary sector quarterly McLaughlin, John A., &John, Gretchen B. [2010].Using Logic Models. In Joseph S. Wholey, Harry P. Hatry & Kathryn E. Newcomer (Eds), Handbook of practical program Evaluation (3 rd Ed.). San Francisco, CA; Jossey-Bass. Mitchell, George E. [2012]. The contrast of organizational Effectives; Perspectives from leaders of international Nonprofits in the United

41 States. Nonprofit and Voluntary sector quarterly Ogden, Tim, Ni, Perla, Karnofsky, Bornstein, Howard, Berger, Ken, Otten hoff, Bob, & Brown, Eric. (2009). The Worst (and Best) Way to pick A Charity This year. Pachacose Michelle, The cooperate zenith Lafarge East Aji-ica D 'Aveni 2007, Lafarge Afi'ica Managing director. ''Empowerment ofdealers and Venders'. 'Pearl son, EK [2001] managing and using information system Strategic Approach, John Witey and sons Inc. USA. Porter, M. Competitive Advantage; creating and sustaining superior Pe,formance. New York; Free press, 1985 Richard et al.[2009]; Measuring Organizational performance; Towards Methodological best practice. Journal of management Wing, Kennard, & Hager, Mark A. [2004] Getting What We pays for; Low Overhead.

42 APPEND ICE APENDIX A; QUESTIONNAIRE

QUESTIONNAIRE FOR RIMA CEMENT LTD USER DEPARTMENTS' FFICIALS KAMPALAINTERNATIONAL UNIVERSITY COLLEGE OF ECONOMICS AND MANAGEMENT

Introduction I am Musubika Caroline a student of Kampala International University. I am doing this research study as part of the requirements for the award of bachelors' degree in supplies and procurement. The topic of my research study is e-procurement and organizational efficiency in private sector in Uganda. Case study; Tororo cement limited in Tororo". The provided information is to be treated with the highest level of confidentiality and only be used for academic purposes. You are therefore requested to answer the following questions to the best of your understanding and any information released by you is to only be used genuinely for academic purposes whatsoever.

SECTION A; BIO DATA 1. Name (optional)

2. Sex

a).Male b)Female 3. Age a). Below 20 years b). 20 - 30 years c). 31 -40 years d).41-50 years e).5 I and above

43 4. Marital status a).Single b).Married c).Divorced d). Widowed 5. Designation ····················································································································· 6. Level of education a). Never been to school b ).Primary level c ).Secondary level d).Tertiary level

7. Organization you work for ·································································· ......

SECTION B ELECTRONIC PROCUREMENT METHODS SUB SECTION ONE; E-tendering I. Are there any e-tendering used in Tororo cement procurement department? Strongly agree Agree D Disagree' D

2. Have thee-tendering selected by the procurement department 111 your organization helped in the achievement of quality in Tororo cement? Strongly agree Agree Disagree CJ 3. E-tendering as a method can enable an organization like Tororo cement to evaluation the best supplier for the organization by the procurement department? Strongly agree CJ Agree D Disagree CJ 4. Have stake holders like (customers, suppliers, members of staff) reacted so much towards e-tendering of e-procurement used in Tororo cement? Strongly agree Agree Disagree

44 5. Are there challenges encountered when using e-tendering in Tororo cement? Strongly agree Agree Disagree

SUB SECTION TWO; E-ordering 1. Are there e-ordering used in Tororo cement to reduce lead time used by the procurement department? Strongly agree Agree Disagree 2. Are there e-ordering easily implemented in your organization (Tororo cement) by the procurement department? Strongly agree Agree Disagree 3. Are there e-ordering importance in achieving the organization objectives in Tororo cement? Strongly agree Agree Disagree ~ 4. Are there challenges encountered during the implementation of e- ordering in Tororo cement by the procurement department? Strongly agree Agree Disagree D 5. ls there sustainability of e -ordering in the private sectors like Tororo Cement? Strongly agree Agree Disagree

SUB SECTION THREE, E -PAYMENT I. Are there any e-procurement payment methods like credit cards, smart cards, electronic payment cards used in Tororo cement as an organization by the financial department? Strongly agree Agree Disagree D 2. Are stakeholders enjoying the use of smartcards as an e- procurement payment methods used in Tororo cement to achieve speed in the services? Strongly agree D Agree D Disagree D 3. Are e- procurement payment methods handled carefully in Tororo cement as an organization to achieve speed in the services by the financial department Strongly agree D Agree Disagree

45 4. Are stakeholders especially suppliers complaining about the e- procurement payment methods used in Tororo cement Strongly agree D Agree CJ Disagree 5. Are there challenges faced when using e-procurement payments methods in Tororo cement by the financial department Strongly agree D Agree D Disagree

SECTION C; ORGANIZATION EFFICIENCY SUB SECTION ONE; Efficiency I. Using e-procurement is Tororo cement able to take a step in terms of development since there is cost saving by using the little expenses and buying items in a more systematic manner and supply chain management? Strongly agree Agree Disagree 2. Is good supply chain management in terms, quality ,speed in the services and cost reduction essential for a successful organization like Tororo cement? Strongly agree D Agree D Disagree CJ 3. Are there any sorts of activities that are integrated together and help in time target and achieving of objectives of an organization like Tororo cement? Strongly agree C:J Agree D Disagree ~ 4. Is e-procurement an essential element of cost saving, effective, and efficient services in Tororo cement as used by the procurement depatiment? Strongly agree D Agree CJ Disagree D 5. ls there any organization effectiveness attained when implementing e- procurement in Tororo cement by the procurement department? Strongly agree CJ Agree CJ Disagree D

46 APPENDIX B; INTERVIEW GUIDE INTERVIEW GUIDE FOR STAKEHOLDERS KAMPALA INTERNATIONAL UNIVERSITY COLLEGE OFECONOMICS AND MANAGEMENT

Introduction I am Musubika Caroline a student of Kampala International University. I am doing this research study as part of the requirements for the award of bachelor's degree in supplies and procurement. The topic of my research study 1s e- procurement and organizational efficiency

Ill private sector in Uganda. Case study; Tororo cement limited in Tororo" The provided information will be treated with the highest level of confidentiality and only be used for academic purposes.

You are therefore requested to answer the following questions to the best of your understanding and any information released by you will only be used genuinely for academic purposes whatever. You are therefore requested to answer the following questions to the best of your understanding.

1. Have stakeholders like (customers, suppliers, and members of staff) reacted so much towards e-procurement evaluations used in Tororo cement by the procurement department? 2. Are there challenges encountered during the implementation of e- procurement in Tororo cement by the procurement department? 3. Is e-procurement an essential element of cost saving, effective, and efficient services in Tororo cement as used by the procurement department? 4. What is the effect of e-procurement and the organization efficiency in Tororo cement? 5. How are stakeholders going to affect e-procurement payment method used in Tororo cement? 6. Are there any sorts of activities that are integrated together and helping time target and achieving objectives of an organization like Tororo cement? 7. Is good quality chain management in terms, quality, speed, in the services and cost reduction essential for successful organization like Tororo cement?

47 8. Is there any organization attractiveness attained when implementing e-procurement in Tororo cement by the procurement department? 9. Are there any e-procurement payment methods like credit cards, smart cards, electronic payment cards used in Tororo cement as an organization by the financial department? I 0. Are e-procurement payment methods handled carefully in Tororo cement as an organization to achieve speed in the services by the financial department?

Thank you

48 APPENDIX C: A TIME FRAME No Time schedule Activities Responsible person I July-2014 Proposal writing and development Author and Supervisor 2 August - 20 I 4 Proposal approval Supervisor 3 September 2014 Presentation of data collection tools Author 4 September - 2014 Pre-testing the tools Author 5 October - 2014 Seeking for letter from the Author university and relevant company authorities

6 November-2014 Data collection Author 7 November- 2014 Data analysis and presentation 8 December -2014 Dissemination of result and research Author and Supervisor report approval

49 APPENDIX D: STUDY BUDGET No Item Quantity Unit cost/= Total cost 01 Photocopying papers I ream 12,000/= 12,000/= 02 Printing questionnaires 80 copies 300/= 24,000/= 03 Typing questionnaires 1 copy 500/= 18,000/= 04 Binding of the research 3 copies 5,000/= 15,000,/= 05 Binding of proposals 3 copies 5,000/= 15,000/=, 06 Rulers I 500/= 500/= 07 Pens 3 5001= 1,500/= 08 Pencils 2 200/= 400/= 09 Transport and communication 1,500/=@day 15,000/= 10 Internet services 5hrs 1,000/=@hr. 5,000/= 11 Hand watch I 5,000/= 5,0001= 12 calculator I 5,000/= 5,000/= 100,900/=

50