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 ..................................................................................................................................