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THE EFFECT OF COMPUTERISED PROCUREMENT ON THE ORGANIZATIONAL PERFORMANCE: 

 A CASE STUDY OF UN WORLD FOOD PROGRAMME UGANDA- COUNTRY OFFICE

ACKNOWLEDGEMENT

Special thanks to the almighty God for giving me the gift of life and giving me a chance to do this research report.

Thanks to my supervisor for tirelessly guiding me in conducting and in the completion of this research report. May the almighty God bless and reward you abundantly in all your endeavors.

I extend my gratitude to the management of UNWFP without whom this research would not be completed. Thank you for your time and information you provided.

I thank my loving family for the financial, spiritual and material support in the preparation of this report and throughout my study career.

TABLE OF CONTENTS

DECLARATION i 

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

ABSTRACT x

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of the study 1

1.2 Statement of the Problem 3

1.3 Objectives of the study 4

1.3.1 General objective 4

1.3.2 Specific objectives 4

1.4 Research question. 4

1.5 scope of the study 4

1.5.1 Subject / content scope 4

1.5.2 Time scope 4

1.5.3 Geographical scope 5

1.6 Significance of the Study 5

1.7 Definition of key terms 5

1.7.1. Computerized procurement 5

CHAPTER TWO 6

LITERATURE REVIEW 6

2.1. Introduction 6

2.2 Definitions and concepts of computerized procurement on organization performance. 6

2.2.1 Definition of computerized procurement 6

2.2.2 Concept of computerized procurement on organizational performance. 7

2.2.3 Principles of organizational performance in computerized procurement environments. 8

2.3 Effects of computerized procurement on procurement cost efficiency in UN World Food Programme (WFP) Uganda-Country Office. 9

2.4 Effects of computerized procurement on procurement process time in UN World Food Programme (WFP) Uganda-Country Office 11

2.5 Effects of computerized procurement on procurement process reliability in UN World Food Programme (WFP) Uganda-Country Office. 12

2.6. The effect of computerized procurement on the organizational performance. 13

CHAPTER THREE 15

RESEARCH METHODOLOGY 15

3.0. Introduction 15

3.1 Research design 15

3.2 Area of study 15

3.3 Study population 16

3.4 Sampling Size 16

3.5. Sampling Technique 16

3.6 Sources of Data Collection 17

3.6.1 Primary Sources 17

3.6.2 Secondary Data Source 17

3.7. Methods of Data Collection 17

3.7.1. Questionnaires 17

3.7.2. Observation 18

3.8. Research Variables 18

3.9. Data collection Procedures 18

3.10 Data quality control 18

3.11 Data analysis 19

3.12 Data Presentation 19

3.13 Ethical Considerations 19

CHAPTER FOUR 20

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 20

4.0 Introduction 20

4.1 Characteristics of Respondents 20

4.2. Study findings 23

4.2.1 Findings on Computerized procurement at UN World Food Programme – Uganda. 23

4.2.2 The effect of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office 25

4.2.3 The effect of computerized procurement on procurement process time in UN World Food Programme- Uganda Country Office 27

4.2.4 The effect of computerized procurement on procurement process reliability in UN World Food Programme- Uganda Country Office 28

4.2.5 Organization performance in UN World Food Programme- Uganda Country Office 29

CHAPTER FIVE 31

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATION 31

5.0 Introduction 31

Discussion of major findings 31

5.1.1 Effect of computerized procurement on procurement cost efficiency 31

5.1.2 Effect of computerized procurement on procurement process time 32

5.1.3 Effect of computerized procurement on procurement process reliability 32

5.1 Summary 32

5.2 Conclusion 33

5.4 Recommendation 33

5.5 Areas for further research 34

APPENDICES 35

APPENDIX I: QUESTIONNAIRES 35

Dear respondent 35

LIST OF TABLES

Table 3.1: Sample Size

Table 4.1: Age of Respondents

Table 4.2: Highest Level of Education

Table 4.3: Department attached

Table 4.4: Position held in the organization

Table 4.5. Computerized procurement

Table 4.6:  The effect of computerized procurement on procurement cost efficiency

Table 4.7:  The effect of computerized procurement on procurement cost efficiency

Table 4.8:  The effect of computerized procurement on procurement process reliability

Table 4.9:  Organization performance in UNWFP

LIST OF FIGURES

Figure 4.1: Distribution of   Respondents by Gender

Figure 4.2: Period of work

ABSTRACT

The study was carried out from UN World Food Programme (WFP) Uganda Country Office with the purpose of assessing the effect of computerized procurement on the performance. The specific objectives of the study were; to assess the effect of computerized procurement on procurement cost efficiency, to examine the effect of computerized procurement on procurement process time and to evaluate the effect of computerized procurement on procurement process reliability.

The literature was reviewed from 2000-2016 basing on research questions. The organization data covered a range (2012-2016) from different scholars which was extracted from journals, books and many others based on the effect of computerized procurement on organizational performance. 

The research design was descriptive in nature where both qualitative and quantitative approaches of data collection were adopted. The researcher used questionnaire and interview method to collect data from 48 respondents using purposive sampling on a population of 50 staff. The researcher experienced various limitations that included not finding all respondents in the study area, expensive in terms of stationary and some respondents not providing information for the study as information relating to the study variables. 

The study found out that computerized procurement ensures transaction costs are minimized, improved transparency, reduced human capital, reduced the costs of ordering, led to increased contract compliance. Computerized procurement has also helped management reduced time spent on monitoring, reduced delivery time, reduced ordering time. Computerized procurement has improved transparency, reduced the risk of theft, minimized errors and there is no longer misplacement of the documents. And as a result of computerized procurement, organizational performance has been improved.

The researcher recommends that employees need to be trained on usage of the computerized procurement system. This will enable them to operationalize the system. There is also need for the organization to integrate the various functions so that procurement can thrive. 

CHAPTER ONE

1.0 Introduction

This chapter covered the background of the study, statement of the problem, objectives of the study, research question, scope of the study, significance of the study and definition of key terms.

1.1 Background of the study

In the World Today, Procurement has involved slow manual procedures and even slower systematic process for handling procurement transactions. The introduction of computerized procurement has had an increasingly important role in business to business (B2B) transactions. Organizations are becoming more discerning about computerized procurement decisions that need to be made and how they respond to the multitude of pressures and influences (Bakieva, 2010). 

 In Zimbabwe, Baily P (2009) believes that computerized procurement through its application of rapid data processing electronic technology provides a means to improve efficiency within specific areas of the supply chain and provide solutions to the challenges. It provides improved efficiency across the supply chain thereby extracting a number of benefits which I will elaborate on later.

 The public procurement in Uganda has been undergoing reforms starting with the public procurement and Disposal Act 2005 that saw the creation of Public Procurement Oversight Authority. 

 Computerized procurement systems allows more efficient integration of supply chains and provide better organization and tracking of transaction records for easier data acquisition. There is need to have a robust automated procurement system which is interlinked and this will lead to enhanced competitiveness and lowered costs (Ogot et al. 2009). Transactions can be standardized and all bids for products and services can be tracked more easily, allowing business owners to use such knowledge to obtain better pricing. Due to faster exchanges of information and delivery of goods and services, computerized procurement also promotes shorter product- development cycles. 

According to Chaffey (2007), computerized procurement involves the use of computers and telecommunication systems for example internet to send and receive information.

 Organization performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard et al. (2009), organizational performance encompasses three specific areas of firm outcomes: (a) financial performance (profits, return on assets, return on investment among others); (b) product market performance (sales, market share); and (c) shareholder return (total shareholder return, economic value added among others). 

Computerized procurement adoption refers to the ability of procurement entities to use the internet and internet technologies to support their procurement processes. It encompasses the willingness and the level of acceptance to use computerized procurement. 

Globally, there are country differences in adoption of electronic procurement. Analyses are conducted on 3475 organizations from 7 different European countries that were stratified according to 9 different sectors and 3 size categories. It appears that there indeed are country differences with respect to computerized procurement adoption and that firms from countries with low uncertainty avoidance such as Germany and the USA are the early adopters of computerized procurement while countries that are less reluctant to change such as sprain and France have lower adoption rates (A.Gunasekaran et al. 2009)

In Uganda, the increasing losses in the procurement process in the PDEs have been attributed to low adoption level of computerized procurement as the ordinary procurement process have been blamed to be time consuming and has consistently scored low on achievement of value for money and transparency (National Procurement Baseline Survey 2010). Thus the adoption of computerized procurement practices in Uganda’s PDEs is still low. This is due to lack of organizational competence/readiness, resistance to change, costs and resource commitments as well as uncertainty (Arthur Ahimbisibwe 2016)

UN WORLD FOOD PROGRAMME- UGANDA COUNTRY OFFICE

The UN World Food Programme (WFP) is the United Nations Frontline agency against world hunger. It is the largest and longest serving humanitarian agency in Uganda. The World Food Programme is the world’s largest humanitarian agency fighting hunger worldwide. On average, WFP aims to bring food assistance to more than 80 million people in 75 countries. As the United Nations frontline agency in the fight against hunger, WFP is continually responding to emergencies. They save lives by getting food to the hungry fast but it also works to help prevent hunger in the future. They do this through programmes that use food as a means to build assets, spread knowledge and nurture stronger, more dynamic communities. This helps communities become more food secure. WFP has developed expertise in a range of areas including food surety analysis, nutrition, food procurement and logistics to ensure the best solutions for the world’s hungry.

The UN World Food Programme (WFP) Uganda Country Office is located at Clement Hill Road, Plot17-19, P.O.BOX: 7159, Kampala-Uganda. The organization currently focuses on three priority areas namely; Emergency Humanitarian Action (EHA), Food and Nutrition Security (FNS) and Agriculture and Market Support (AMS) that is to say support to refugees, food and cash assistance, emergency preparedness, nutrition and school meals. World Food Programme (WFP) has operations in various parts of the country. The organization uses computerized systems for example E-catalogs, MRPs, Internet, among others and the means of transportation of cargo from abroad include both water and road.

These system benefits the organization by reducing in lead time, flexibility, reduced paper work. However they also face few challenges while operating their duties for example, low purchasing power of buyers, high tax charges from government, constant changes in orders due to climatic changes, and many others.

1.2 Statement of the Problem

In today’s world, computerized procurement has become part and parcel of everyday life in many business circles as large number of organizations are involved in it. The emphasis is on the use of technology to enhance transactional activities in order to gain operating efficiencies (Essig and Arnold 2001).     

Despite the low adoption rate of computerized procurement in Uganda, largely attributed to uncertainty in achieving the promise of computerized procurement, the UN World Food Programme Uganda Country Office has succeeded in adopting computerized procurement. According to the WFP Food Procurement Annual Report 2014, on an annual basis WFP’s team of procurement officers source food, goods and services using computerized procurement across international, regional and local markets to meet their procurement requirements. Therefore, it was upon this background that this study sought to examine the effect of computerized procurement on the organizational performance at the UN World Food Programme- Uganda Country Office.

1.3 Objectives of the study

1.3.1 General objective

To assess the effect of computerized procurement on the performance of UN World Food Programme Uganda.

1.3.2 Specific objectives

The study was guided by the following specific objectives.

1. To assess the effect of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office.
2. To examine the effect of computerized procurement on procurement process time in UN World Food Programme Uganda- Country Office.
3. To evaluate the effect of computerized procurement on procurement process reliability in UN World Food Programme Uganda- Country Office.

1.4 Research question.

1. What are the effects of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office?
2. Examine the effects of computerized procurement on procurement process time in UN World Food Programme Uganda- Country Office?
3. What are the effects of computerized procurement on procurement process reliability in UN World Food Programme Uganda- Country Office?

1.5 scope of the study

This covered the subject scope, time scope and geographical scope of the study.

1.5.1 Subject / content scope

The content generally covered the effect of computerized procurement. Basically the study looked at the relationship between computerized procurement on the performance of UN World Food Programme Uganda, the challenges faced when using different computerized procurement /ICT tools and the solutions to computerized procurement challenges faced by UN World Food Programme Uganda.

1.5.2 Time scope

Preparation for the study was for 1 week; however the estimated period for carrying out research was 4 months, that is to say from (March 2017 to July 2017). The study depended on the organizational data for the past 4 years (2012-2016) and was got from journals, reports and websites of the organization.

1.5.3 Geographical scope

The study was carried out from UN World Food Programme (WFP) Uganda Country Office, located at Clement Hill Road, Plot17-19, Kampala. P.O.BOX 7159, Kampala-Uganda. In the research study a few departments was selected from the company for further interview and these include procurement, sales, stores, marketing, accounts and others.

1.6 Significance of the Study

• The study will contribute to a better understanding of the effect of computerized procurement on organizational performance. It is also expected that the study will help to raise awareness amongst all stakeholders, on matters concerning computerized procurement.
• The study will help top management in making key procurement decisions on how to reach the organizational performance using computerized procurement tools.
• It will help future researcher/authors in finding more information about how computerized procurement promotes performance improvement in the organization.
• It will benefit the public to know the advantages of using computerized procurement /ICT tools while carrying out procurement and how to attain the performance of the organization.

1.7 Definition of key terms

1.7.1. Computerized procurement

Lysons (2000) defines computerized procurement as automatic acquisition, storage, manipulation, movement, control, display, switching, interchange, transition or reception of data or information.

1.7.2 Organization 

According to Allen A. Louise, organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives.

CHAPTER TWO

LITERATURE REVIEW

2.1. Introduction

This chapter covered what various scholars have written about the effect of computerized procurement on Organizational performance, the concept of computerized procurement on organizational performance. It also covered the effects of computerized procurement on procurement cost efficiency, process time and process reliability in UN World Food Programme (WFP) Uganda- Country Office as well as the effect of computerized procurement on the organizational performance.

2.2 Definitions and concepts of computerized procurement on organization performance.

2.2.1 Definition of computerized procurement

Various researchers defined computerized procurement differently;

Parida and parida (2005) define computerized procurement as a technology solution that facilitates corporate buying using the internet. Essentially an internet/intranet based purchasing application or hosted service that streamlines buying, trading partners, maximizes trade efficiency across the entire supply chain, and provides strategic e-commerce capabilities in internet time.

Computerized procurement refers to the process which supports the procurement and sourcing activities via internet technologies and enables an efficient negotiation between buyers and suppliers (Gimenez and Lourenco 2004)

Turban and king (2005) defines computerized procurement as an electronic acquisition of goods and services in a firm.

Chaffey (2007) defines computerized procurement as the use of automated machines especially computers in dealing with transactions that require interaction electronically between the sender and the receiver.

The automation of the procurement process so that the sourcing, vendor selection, procurement processes, shipment status tracking and payments can be made in an online environment (Bhaskar 2005)

Lysons (2000) asserts that computerized procurement is the process of automated acquisition, storage, manipulation, movement, control, display, switching, interchange, transaction, or reception of data or information.

Computerized procurement can also be defined as the use of internet to operate the transactional aspects of requisitioning, authorizing, ordering, receiving and payment process for the required product or services (Chinkanza, 2005).

2.2.2 Concept of computerized procurement on organizational performance.

Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard et al. (2009), organizational performance encompasses three specific areas of organizational outcomes that is to say; Financial performance (profit, Return on Assets, Return on investment), Product market performance (sales market share) and Shareholder return (Total shareholder return, economic value added). Organizational performance is probably the most widely used dependent valuable in organizational research today yet at the same time it remains one of the most vague and loosely defined constructs. The biggest challenge to organizational performance is the external environment. The challenges that may arise from the external environment includes; political, economic, socio-cultural environment and technological (Snider and Rendon, 2001).

The concept of organizational performance refers to the change in which the managers and the governing body of an organization put into place and manage a programme which measures the current level of performance of the organization and then generates ideas for modifying organizational behavior and infrastructure which are put into place to achieve higher output. The primary goals of organizational performance are to increase organizational effectiveness and efficiency to improve the ability of the organization to deliver goods/ service. Another area in organization performance that sometimes targets continuous improvement is organization efficiency, which involves the process of setting organizational goals and objectives in a continuous cycle. Organizational performance at the operational or individual employee level usually involves processes such as statistical quality control. At the organizational level, performance usually involves softer forms of measurement such as customer satisfaction surveys which are used to obtain qualitative information about performance from the view point of customers (Kaplan and Norton, 2001)

Researchers have argued that internal integration of various activities in an organization was able to enhance economic performance. Flynn et al. (2010) defines internal integration as the degree to which two departments collaborate in the management of both inter and intra departmental processes to provide maximum value for the firm. Computerized procurement has the capacity of acting as an integrative technology that enables integration and improvement of processes between departments (Vickery et al. 2003).

Flynn et al. (2010) further assert that internal integration of organizational process is a recipe for moderated corporate performance though there is no clear elaboration on how this happens. Narasimhan et al. (2003) concur that there exists a positive effect of computerized procurement on organizational performance even though no empirical evidence has confirmed this position.

Chaffey (2007) urges that computerized procurement today is a vital asset to any Organization. This is because it’s the major driver in cost reduction, record management and timely transfer of information in the supply chain, Easy and quick selection and identification of potential suppliers and customers, quick placement of orders and quick deliveries among others. Hence quick selection and identification of potential suppliers online enables the Organization to acquire the best products in the shortest time possible and at fairly low prices, hence improving performance in UN World Food Programme (WFP) Uganda- Country Office.

2.2.3 Principles of organizational performance in computerized procurement environments.

Strong leadership to ensure that the spread initiative is viewed as a strategic effort.

Better ideas with examples of change ideas that have been tested and implemented successfully.

A spread plan, including a communication plan, a measurement plan and a work plan must be in place

The social system is considered in the communication of both awareness to attract adopters and technical content needed to guide the change.

Measurement, feedback and knowledge management are used to monitor and guide the spread work.

2.3 Effects of computerized procurement on procurement cost efficiency in UN World Food Programme (WFP) Uganda-Country Office.

Existing literature has emphasized the important contribution of e-procurement in reducing total purchasing costs. These benefits broadly arise through lower prices from suppliers and reduced costs in the ‘requisition to payment’ process (Croom, 2000; deBoer et al, 2002; Wyld, 2002; Kameshwaren et al. 2007; Mishra et al. 2007). Whilst it has been widely contended that computerized procurement will have considerable implications for the design of the procurement process, Lancioni et al. (2000) note that the precise nature of these changes remains unclear.

Accepting the notion that ICT reduces transaction costs, it is necessary to ask whether ICT leads to cooperation with a larger number of suppliers, or to a close integration with few partners. The former is suggested by the fact that new technologies lower searching and filtering costs and by increasing the number of sourcing options companies could intensify the competition between suppliers and increase their bargaining position (Mukhopadhyay et al. 2002). However, the latter might be the case because UN World Food Programme (WFP) Uganda- Country Office takes advantage from transaction economies of scale only if cooperation is maintained over a long period of time and sufficiently many transactions per relationship is carried out. According to Crake Richard (1998), ICT helps to computerize the business process thus streamlining the transactions to make them extremely cost effective.

There are cost implications that might either be success factors or challenges in the implementation of a computerized procurement; most of the time. Computerized procurement plays a major role in the cost reduction in UN World Food Programme (WFP) Uganda- Country Office as it conducts procurement related activities. Procurement is among the most expensive items in the cost structure of an organization. Computerized procurement has recently played a major role in the cutting of costs in a corporate environment though it’s still in its early stages of adoption. UN World Food Programme (WFP) Uganda- Country Office is multi-geographical in nature thus their operations stretch across the country especially the northern region therefore, computerized procurement has provided an alternative for them to conduct a smooth supply chain management while at the same time cutting on the costs involved. The use of computerized procurement has been proven to enhance great cost reduction for the organization. A manual procurement process involves the use of papers that are used to send the purchase orders among other things such as delivery notes. These papers are bought by the organization but computerized procurement does not require these papers in order to be successful. This leads to the organization saving a lot of money as a result of not buying the papers. This money can thereafter be transferred to a different use where there may be need (Abramson, 2003).

Organizations use a lot of human capital on the people who are used to file and organize the papers used in procurement. However, with the implementation of computerized procurement in UN World Food Programme (WFP) Uganda- Country Office, all this process is done in a click of a mouse. 

This helps UN World Food Programme (WFP) Uganda- Country Office to reduce the human capital after which the saved cash may be channeled into other essential areas for the organization’s growth (Cunha, 2011). 

Costs are cut by the shortened procurement process that leads to a reduction in the supply chain hence leading to lowered costs when it comes to supply of goods and services.

 Costs of ordering are removed because ordering is done online and hence there is no printing of documents and wastage of time to go through the printed documents in preparation for the procurement process.

 The unending calls are reduced because procurement is done via an internet connection and hence telephone bills are reduced and brought to a very manageable level.

 Computerized procurement also led to increased contract compliance because when the organization is dealing with people it cannot see, and then there must be a serious contract and trust in order to have a smooth process. It reduces administrative costs as well as operational costs and this has enabled it to gain popularity since the organization wants to save as much money as possible especially on administration. Administration costs can be many and can lead to an increase in errors if it involves several administrative officers handling the procurement process.

Computerized procurement reduces prices for goods and services. This is because it eliminates the middle man. Middlemen affect the cost of products and services as they will always charge for every service they offer in order to make the organization access the goods and services. With the computerized procurement, UN World Food Programme (WFP) Uganda- Country Office is able to access goods and services directly from the stores via an internet connection hence leading to a reduction of prices. 

Labor costs reduce as well and this significantly contributes towards cost reduction in computerized procurement.

2.4 Effects of computerized procurement on procurement process time in UN World Food Programme (WFP) Uganda-Country Office

The arrival of the internet as a means of doing business has served as a medium for major changes in the operation and status of organizational procurement. It is evident that information technologies have totally transformed the way organizations and governments operate (Nelson et al. 2001)

Manual procurement process is an extensively administrative process. It has been defined as a complex paper chase moving throughout the organization. The introduction of computerized procurement relieves the staff of the administrative burden that comes with manual procurement. This is because automating the keys leads to the saving of time and thus leads to the saving of the organization money (Heizer, 2014).the requisition officers are often the staff members who spend a great deal of time filling in the paper based forms, passing them through for authorization as well as following the top authorizers or the purchasing g department for their signatures. This leads to the individual wasting a lot of valuable time of the organization that would have otherwise been channeled to doing more constructive work that may help in the growth of the organization. The introduction of the computerized procurement has thus helped minimize all these time wastage thereby making the individuals more productive (Abramson, 2003)

Paper based procurement often has no single central database to enhance accessing of the reports from the procurement process. This often leads to the management spending more of their time monitoring the procurement process rather than spending it on other issues. The introduction of the computerized procurement has enhanced the ability of all procurement data to be processed through a single central database that is automatically assimilated into the organization’s system (Sharma, 2010). This thus allows for the anytime relevant analysis and management of the reports from the procurement process. It also gives the procurement professionals the information that they need to manage effectively. This ultimately reduces their administrative duties thus management can channel their energy and minds to the proactive decision making programs argues screen, (2011)

Computerized procurement increases time of operation in UN World Food Programme (WFP) Uganda- Country Office hence making it possible for business to open 24/7 all over the globe. Therefore, the business was open anytime anywhere, making purchases from different countries easier and more convenient. It also means that you will have your goods delivered right to your door step without having to move a single muscle (Kennedy A.2001)

2.5 Effects of computerized procurement on procurement process reliability in UN World Food Programme (WFP) Uganda-Country Office.

The paper based procurement process is often prone to errors in typing, either intentional or unintentional. With the use of computerized procurement process, all these errors can easily be noted by all the members of the organization and corrective action may be taken to avoid losses on either the supplier or the client’s side (Neef,2001) thus being reliable to UN World Food Programme (WFP) Uganda- Country Office.

The paper based procurement process may also face the challenge of theft or misplacement of the vital documents such as the purchase orders and good s received notes thereby may cause conflicts between the supplier and the client. However, with the use of the computerized procurement, there is no longer misplacement of the documents as all of them are stored online. There is also no risk of theft as it is secured by passwords and other forms of telecommunication security codes. This offers the security of the data and thus leads to reduced conflict between the supplier and the client (Morgan, 2004). There’s ability to share data between different suppliers without the fear of losing it or getting a different version of it. Therefore, computerized procurement has played a key role in the safety of the data (Heywood, 2002)

Procurement fraud is the unlawful manipulation of the procurement process in order to acquire goods or services by obtaining an unfair advantage. It may also be defined as dishonestly getting an advantage, avoiding an obligation or enhancing a loss to the public property during theprocess of procurement by the contractors, the public servants or any stake holders in the procurement process (Neef, 2001). To prevent the risk fraud in the computerized procurement process, UN World Food Programme (WFP) Uganda- Country Office opted to use computerized procurement that helps to embark on an end to end analysis of their purchasing process. This ensures transparency and reliability of the procurement process in the organization.

2.6. The effect of computerized procurement on the organizational performance.

Ernst and Young (2000) assert that, computerized procurement plays a valuable role throughout the procurement life style of the organization.

Ernst and Young (2000) assert that computer resources are frequently the key to success or failure of the activities in the individual procurement stages and at times to success or failure of the entire procurement department.

Jakubowski (2002) observe that communication and training significantly contributes to improving the performance of the organization. Procurement and account payable employees, as well as vendors need to be put on notice and educated as to what constitutes a violation of the organization code of ethics.  The organization must provide for a method of reporting suspicious activities.

Jakubowski (2002) assert that procurement awareness training is a positive experience that the employees on the organizations ethics and fraud polices, while stressing that fraud is both costly and detrimental to the organization. Through this, training employees become aware of the red flags to the fraudulent activities and their responsible activities thus performance improvement.

In addition, Australian natural training authority (1999) argues that procurement personnel are trained on what to look for in selecting vendors and processing purchase orders. Controls that is crucial to their department, Red Flags of procurement fraud and how to report suspicious activities within the organization. Australian natural training authority (1999), stressed that this can be made easier through use of information and communication.

The rapid development of world wide web (www) technologies , internet and information and communication technology (ICT)have generated the evolutionary online business solution and electronic commerce(e-commerce) both of which are to provide support for both information and work flow control and process management as well as enhance the communication.

E-commerce communication is perceived as the main steam to improve productivity, information flow and communications. (Osmonbekov, 2002)

According to UNESCO (2002), ICT offers concrete opportunities, for local and national governments to improve their performance in terms of transparency, participation of decentralization.

By narrowing the constraints of geographical isolation or insufficient time, computerized procurement has the potential to invigorate business relations and allow citizens participation in organization’s activities with the use of the internet.

UNESCO (2002), asserts that the integration of computerized procurement in business process has the primarily objectives of transforming the relations between organization and the public, its customers by allowing the public to become active stakeholders in business making process.

In conclusion, using computerized procurement in UN World Food Programme (WFP) Uganda- Country Office, there are various ways of delivering more with fewer resources. The supply chain division establishes end to end integrated supply chain planning for all of WFP’s operations with the goal of increasing efficiency and effectiveness by reducing costs and lead times as well as ensuring reliability while targeting savings across global supply chain operations. In 2015, WFP increased the value of its expenditure through several achievements (WFP Supply Chain Annual Report 2015).

CHAPTER THREE

RESEARCH METHODOLOGY

3.0. Introduction

This chapter covered research design, study population, methods of data collection, procedure of data collection, data quality control, data processing, presentation and analysis, finally limitations anticipated.

3.1 Research design

The study employed a case study research design. A case study is an empirical enquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident and it relies on multiples sources of evidence (Yin, 1994). Case studies typically combine data collection techniques such as interviews, observations, questionnaires, and document and text analysis. Eisenhardt (1989) posits that Case study strategy focuses on understanding the dynamics present within a single settings. A case study research design, combined with both quantitative and qualitative methods was used for this study. Quantitative research is the systematic empirical investigation of observable phenomena via statistical, mathematical or computational techniques (Mugenda & Mugenda, 2003). According to Silverrman (2001), quantification gives greater confidence in the accuracy of conclusions derived from qualitative data; and it gives the reader a chance to think through the data on their own to cap on the researcher’s findings. The research used this method because it produces information only on the particular cases studied. According to Baron (2011), qualitative research strategy helps to capture qualitative data, based on qualitative aspects that may not be quantified. It aids in discovering the motives and desires or what people think and how they feel about a given subject or situation. This method involves an unstructured approach to inquiry and allows flexibility in all aspects of the research process. It is more appropriate to explore the nature of a problem, issue or phenomenon without quantifying it. 

3.2 Area of study

The study was carried out from UN World Food Programme (WFP) Uganda Country Office, located at Clement Hill Road, Plot17-19, Kampala. P.O.BOX 7159, Kampala-Uganda. In the research study a few departments was selected from the company for further interview and these include procurement, sales, stores, marketing, accounts and others.

3.3 Study population

Study population is a complete set of individuals, cases or objects with some common observable characteristics. The sample population consists of 50 employees of UN World Food Programme (WFP) Uganda- Country Office. The population included Procurement, Finance, transport, Stores department and other employees holding familiar and unfamiliar titles but were deemed to be suitable stakeholders for generating relevant data to the problem which was under investigation. 

3.4 Sampling Size

The sample size consisted of 48 staff members from different departments of UN World Food Programme (WFP) Uganda- Country Office, for example procurement, stores, finances and marketing among others. The research considered members of the staff who have worked for at least 1 year and above in the organization. It is determine based on the Krejcie and Morgan’s sample size calculation which same as using the Krejcie and Morgan’s sample size determination table. The Krejcie and Morgan’s sample size calculation was based on p = 0.05 where the probability of committing type I error is less than 5 % orp <0.05, s = sample size, X2=the table value of chi-square for 1 degree of freedom at the desired confidence level (0.05 = 3.841), P = the population proportion (assumed to be 0.50 since this would provide the maximum sample size, N = the population size and d = the degree of accuracy expressed as proportion (0.05).

S=X2NP (1-P)d2 (N-1) +X2P (1—P)

Table 3.1: Sample Size

Source: Krejcie, R.V & Morgan, D.W (1970)

3.5. Sampling Technique

The study also employed purposive sampling technique. Silverrman (2001), purposive sampling involves deliberate selection of particular units of the population for constituting a representative sample. The researcher chose the sample based on who he thinks would be appropriate for the study while convenience sampling rose where the population elements are selected for inclusion in the sample based on the ease of access. The researcher used purposive sampling because it saves time, money and effort. It is flexible and meets multiple needs and interests. It enables researchers to select a sample based on the purpose of the study and knowledge of a population.

3.6 Sources of Data Collection

This covered both primary sources and secondary sources.

3.6.1 Primary Sources

The researcher collected Primary data using open ended questionnaires, which involves distributing questionnaires to selected respondents.  The researcher also used observation as another method of collecting Data from the field, and interviewing as well. Primary data was used to compare whether what is in the literature matches with respondents interviews.

3.6.2 Secondary Data Source

These are either published or non-published data for example from company reports, journals, text books, magazines, or various documents through review of related literature since 2000 up to date. This was used to supplement on primary data and also compare primary data with literature views.

3.7. Methods of Data Collection

This includes questionnaires and observation which was used to gather data on the effect of computerized procurement on the performance of UN World Food Programme (WFP) Uganda- Country Office.

3.7.1. Questionnaires

The research formed close ended and open ended questionnaires to collect data on the effect of computerized procurement on the performance of UN World Food Programme (WFP) Uganda- Country Office. These questionnaires were sent to respondents to answer them.

The researcher then collected back the questionnaires for data analysis; code the data into understandable and meaningful information. This method of data collection was used because it is time saving since the respondents are given enough time to answer the questions, eliminates interview bias, and creates greater anonymity.

3.7.2. Observation

Using this method, the researcher matches, monitor an event or activity in progress to get firsthand information/ impression of the events, record it and finally draw his /her conclusion. Advantages of observation include gathering firsthand information, impression that is undoubtful, enables the research clarify some questions on spot and it gives more reliable and error free information. In addition data collection tools includes eyes, video cameras etc.

3.8. Research Variables

The variables as used in research study are things / concepts that when manipulated can take on different values. In this study, computerized procurement is the independent variable, because it is the one that produces a change in the organizational performance. On the other hand, organizational performance is the dependent variable, because it is an outcome / output due to manipulation of computerized procurement (independent variable).

3.9. Data collection Procedures

The research ensured a letter of representation is prepared and taken to the respective organization. Then seek permission from the concerned personnel, who also received a sample of the instruments to be used. The researcher then proceeded to administer the instruments to the respondents.

3.10 Data quality control

This was measured through testing the reliability and validity of research instruments.

3.10.1 Reliability

Reliability is the degree to which a measure is consistent in producing the same reading/results when measuring the same thing at different times (Opuko, 2000). Reliability is influenced by random error, that is, as random error increases, reliability decreases. The random error is the deviation from the true measurement due to the factors that have not effectively been addressed by the researcher. The questionnaire has to be well structured to achieve the purpose of the research thereby meeting the test of reliability. The reliability of the research instruments was tested through a pre-test. The results were subjected to the Cronbach’s Alpha reliability test to measure the internal consistency of responses. 

3.10.2 Validity

Law & Kelton (1991), validity can be defined as the degree to which a test measures what it is supposed to measure. He suggests that if a questionnaire model is “valid”, then the decision made with the questionnaire model should be similar to those that would be made by physically experiencing with the system. In order to ensure validity the questionnaire was made clear and understandable, the questionnaire was first discussed by the researcher with the supervisor; this will include careful choice of words, order and structure of questions plus the research instruments was subjected to a content validity test (CVI). After receiving the questionnaires, manual editing was done, followed by coding. Frequency count of different provisions was done and this gave the number of occurrences (frequencies) and percentages out of total occurrences for different responses. And lastly simple conclusions were drawn from the given percentages and numbers. 

3.11 Data analysis

For quantitative data, manual editing of questionnaires was done to eliminate errors. After coding, tabulation was done to clearly present various responses and the interpretation. Frequencies and percentages were used to portray statistics used to analyze and interpret the findings of the study. Data analysis was done using; correlation analysis to establish the relationships that exist between the variables. For ease of analysis, procedures within Statistical Package for Social Sciences (SPSS) were used.

Data processing involved editing raw data to detect errors and omissions, classifying data according to common features, and tabulation to summarize and organize it. Data analysis involved the qualitative approach of identifying the major themes arising respondents’ answers; assigning of codes to the themes: classification of the themes under the main theme; and integrating the responses into the report in a more descriptive and analytical manner.

3.12 Data Presentation

Data presentation involved use of tables, pie-charts and graphs that were generated from the questions relevant to the study variables. Interpretation and discussion of the results were done as the researcher explained the strength of the study variables basing on the frequencies and percentages, charts and graphs. 

3.13 Ethical Considerations

The information got was kept confidential and strictly used for academic purpose in writing the research report.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.0 Introduction

This chapter provides for the study findings, the interpretation of the findings and presentation. The chapter presents the findings in line with the set objectives:

4.1 Characteristics of Respondents 

This aspect of the analysis deals with the characteristics of the respondents of the questionnaires.  The results obtained are presented below;

Figure 4.1: Distribution of   Respondents by Gender

Source: Primary Data

From the table above, male respondents formed the highest percentage 29(60.42%) compared to the female with only 19(39.58%). No significant difference between the two categories and there was none response recorded. This implies that men were more than women this shows their participation in management, however, the views of the women were vital too.

Table 4.1: Age of Respondents

Source: Primary Data

From Table 4.1 above, 1(2.1%) of the respondents were below 20years, 14(29.2%) were between 21-30years, 22(45.8%) of the respondents were between 31-40years and 11(22.9%) of them were over 40years. This implies that majority of the respondents were between 31-40years. This is because they are the most active age group hence they are actively involved in management; therefore they had rich experiences and could also appreciate the importance of the study. 

Table 4.2: Highest Level of Education

Source: Primary Data

Table 4.2 above shows that, 1(2.1%) of the respondents had reached secondary level, 11(22.9%) were of certificate/diploma level, 32(66.7%) of the respondents were degree holders, 4(8.3%) were of postgraduate level. This implied that majority of the respondents were degree holders. This is because the organization recruits, retains and maintains qualified human resource to fill the positions in the institution who are capable of sustaining effective computerized procurement implying that the selected sample had the capacity and were qualified to avail the researcher with reliable and appropriate information on the topic under investigation.

Figure 4.2: Period of work

Source: Primary Data

From figure 4.2 above, 12(25%) of the respondents revealed less than 1year, 32(66.67%) indicated 1-4years and 4(8.33%) of the respondents revealed 5yars and above. This implies that majority of the study respondents had spent 1-4years in the organization. This is because the organization retains existing employees and also recruits more.

Table 4.3: Department attached

Source: Primary Data

Table 4.3 above shows that, 8(16.7%) of the respondents were from procurement department, 11(22.9%) were from stores department, 4(8.3%) of the respondents revealed finance department, 6(12.5%) of the respondents revealed transport department and 19(39.6%) of them were from other departments in the organization. This implies that majority of the respondents were from other departments meaning information from the procurement, stores, finance,  and transportation departments was not sufficient therefore other departments were explored  and relevant information was got in regards to the topic under study since these departments deal directly in computerized procurement.

Table 4.4: Position held in the organization

Source: Primary Data

Table 4.4 above shows that, 4(8.3%) of the respondents indicated top management, 6(12.5%) of them revealed middle management, 14(29.2%) of the respondents and 24(50%) were non-managerial staff. This implies that majority of the respondents were non-managerial staff. This is because most of the staff members at UN World Food Programme – Uganda hold non-managerial positions. 

4.2. Study findings 

4.2.1 Findings on Computerized procurement at UN World Food Programme – Uganda.

Table 4.5. Computerized procurement

Source: Primary Data

Table 4.5 above shows that, 36(75%) of the respondents strongly agree with computerized procurement has helped the UN WFP to minimise total procurement costs, 12(25%) agree, while no respondents were not sure, disagree or strongly disagree. This implies that majority of the respondents agree. This is because UN World Food Programme – Uganda has adopted computerized procurement in its operations and minimizing total procurement costs have been one of the aim.

Results above also indicate that 30(62.5%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of contract creation/drafting, 10(20.8%) agree, 6(12.5%) disagree, 2(4.2%) of the respondents strongly disagree and no respondents were not sure. This implies that majority of the respondents agreed with 40(83.3%). This is because one of the reasons for the implementation of computerized procurement in UN World Food Programme – Uganda is to improve on contract creation.

Table above further shows that, 35(72.9%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of advertising and solicitation, 8(16.7%) of them agree, no respondents were not sure, 1(2.1%) of them disagree and 4(8.3%) of the study respondents strongly disagree. This implies that majority of the respondents were positive with the statement. This is because using computerized systems in procurement, all activities are carried out on line.

Findings as presented above indicate that, 24(50%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of contract evaluation and selection, 16(33.3%) agree, 5(10.4%) of the respondents were not sure, 2(4.2%) of them disagree and 3(6.3%) strongly disagree. This implies majority of the respondents were positive with the statement because computerized procurement has been adopted in UNWFP.

Finally results in table 4.5 above reveal that 18(37.5%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce payment approval and transfer costs, 28(58.3%) agree, no respondents were not sure, 1(2.1%) of the respondents disagree and another 1(2.1%) of the respondents strongly disagree. This implies that majority of the respondents were positive with 46(95.8%). This is because most procurement activities in UNWFP are done online.

4.2.2 The effect of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office

The study sought to identify the effect of procurement on procurement cost efficiency in UN World Food Programme -Uganda Country Office. Results were obtained and presented below:

Table 4.6:  The effect of computerized procurement on procurement cost efficiency

Source: Primary Data

Results in table above indicate that, 38(79.2%) strongly agree with computerized procurement ensures transaction costs are minimized, 10(20.8%) agree while no respondents were not sure, disagreed or strongly disagreed. This implies that majority of the respondents were positive with 100%. This is because at UNWFP, the positive effects of computerized procurement have been realized such as minimizing transaction costs.

Table also indicated that 46(95.8%) of the respondents strongly agree with computerized procurement has improved transparency, 2(4.2%) of the respondents agree, while no respondents were not sure, disagreed or strongly disagreed. This implies that most respondents were positive because computerized procurement has been effective in the operations of UNWFP and has improved on the general performance of the organization such as improving transparency in the procurement process.

Findings in table above show that 31(64.5%) of the respondents strongly agree with computerized procurement has reduced human capital, 14(29.2%) agree, 2(4.2%) disagree, 1(2.1%) of the respondents strongly disagree and no respondents were not sure. This implies that majority of the respondents were positive with (93.7%), this is because as a result of computerized procurement, number of people being employed have been reduced thus improving organizational performance.

Table 4.6 above indicates that, 47(97.9%) of the respondents strongly agree with computerized procurement has reduced the costs of ordering, 1(2.1%) agree while no respondents were not sure, disagreed or strongly disagreed. This is because using computerized procurement at UNWFP has reduced the cost of ordering. This in turn has led to improved performance in the organization.

Study responses as indicated in the above show that, 14(29.2%) of the respondents strongly agree with computerized procurement has led to increased contract compliance, 30(62.5%) agree, 1(2.1%) of them were not sure, 2(4.2%) disagree and 1(2.1%) strongly disagree. This implies that majority of the respondents were positive with (91.7%), therefore in UNWFP there is improved contract compliance as a result of computerized procurement.

Table 4.6 indicated that, 14(29.2%) of the respondents strongly agreed with computerized procurement has improved the flow of information, 8(16.7%) agree, 11(22.9%) were not sure, 7(14.6%) disagree and 8(16.7%) of the respondents strongly disagree. This implies that most respondents were positive reflecting (45.9%) thus, as a result of computerized accounting; there has been improved flow of information in UNWFP.

Finally, 39(81.3%) of the respondents strongly agree with computerized procurement has facilitated quick response to customers, 6(12.5%) agree, no respondents were not sure, 2(4.2%) of the respondents disagree and 1(2.1%) strongly disagree. This implies that as a result of computerized procurement in UNWFP – quick responses to customers has been facilitated thus improving performance in the organization.

4.2.3 The effect of computerized procurement on procurement process time in UN World Food Programme- Uganda Country Office

The study sought to identify the effect of procurement on procurement process time in UN World Food Programme -Uganda Country Office. Results were obtained and presented below:

Table 4.7:  The effect of computerized procurement on procurement cost efficiency

Source: Primary Data

From table 4.7 above, 23(47.9%) of the respondents strongly agree with computerized procurement has helped management reduced time spent on monitoring, 07(14.6%) agree, no respondents were not sure, 11(22.9%) disagree and 7(14.6%) of the respondents strongly disagree. This implies that majority of the respondents were positive meaning that computerized procurement has acted positively on the process time in terms of time spent on monitoring. From findings, the organization does not spent a lot of time on monitoring procurement activities as it is done all online.

Table 4.7 also shows that, 3(6.7%) of the study respondents strongly agree with computerized procurement has increased time of operation, 6(12.5%) agree, 4(8.3%) of the respondents were not sure, 5(10.4%) disagree and 31(64.5%) of the respondents strongly disagree. This implies that most respondents were negative with 74.9% thus, as computerized accounting has not increased time of operation.

Findings in table 4.7 above show that, 10(20.8%) of the respondents strongly agree with computerized procurement has reduced delivery time, 16(33.3%) agree, 2(4.2%) were not sure, 5(10.4%) of the respondents disagree and 15(31.3%) of them strongly disagree. This implies most of the respondents were positive meaning that there is reduced delivery time at UNWFP.

Finally, findings in the table reveal that 47(97.9%) of the respondents strongly agree with computerized procurement has reduced ordering time, 1(2.1%) of them agree. However, no respondents were not sure, disagree or strongly disagree implying that using computerized procurement at UNWFP has reduced the cost of ordering. This in turn has led to improved performance in the organization.

4.2.4 The effect of computerized procurement on procurement process reliability in UN World Food Programme- Uganda Country Office

The study sought to identify the effect of procurement on procurement process reliability in UN World Food Programme -Uganda Country Office. Results were obtained and presented below:

Table 4.8:  The effect of computerized procurement on procurement process reliability

Source: Primary Data

Study findings in Table 4.8 above shows that, 38(79.2%) strongly agree with computerized procurement has improved transparency, 10(20.8%) agree, no respondents were not sure, disagree or strongly disagree. This implies that majority of the respondents were positive reflecting (100%) thus, there has been increased transparency in the operations of UNWFP.

Table 4.8 above also indicates that (79.2%) strongly agree with there is no longer misplacement of the documents, 10(20.8%) agree, no respondents were not sure, disagree or strongly disagree. This implies that most of the respondents were positive thus, procurement process reliability has been realized in UNWFP through improved transparency as a result of computerized procurement.

Findings in table above indicate that, 19(39.6%) strongly agree with computerized procurement has reduced the risk of theft, 1(2.1%) agree, 2(4.2%) of the respondents were not sure, 7(14.6%) disagree and 11(22.9%) of them strongly disagree. This implies that majority of the respondents were positive with 41.7% thus, as a result of computerized procurement, there has been reduced theft risks in UNWFP.

Finally, 40(83.3%) of the respondents strongly agree with there are minimal errors, 8(16.7%) agree, no respondents were not sure, disagree or strongly disagree. This implies that majority of the respondents were positive reflecting (100%) thus, there are minimal errors in the operations of UNWFP.

4.2.5 Organization performance in UN World Food Programme- Uganda Country Office

Table 4.9:  Organization performance in UNWFP

Source: Primary Data

Findings as indicated in Table 4.9 show that, 18(37.5%) of the respondents strongly agree with customer demand has been fully met, 12(25%) agree, no respondents were not sure, 14(29.2%) of the respondents disagree and 4(8.3%) of them strongly disagree. This implies that majority of the respondents were positive reflecting 62.5% thus, there is improved organizational performance.

Results in table 4.9 show that 4(8.3%) strongly agree with lead time has been reduced, 24(50%) agree, no respondents were not sure, 11(22.9%) disagree and 9(18.8%) of the respondents strongly disagree. This implies that majority of the respondents were positive reflecting 58.3% thus as a result of reduced lead time – organizational performance has been improved at UNWFP.

Table 4.9 above shows that 13(27.1%) strongly agree with organizational relationships improve reliability, 20(41.7%) agree, 9(18.8%) of the study respondents were not sure, 4(8.3%) disagree, 2(4.2%) of the respondents strongly disagree. This implies that majority of the respondents were positive reflecting (68.8%) and hence performance has improved at UNWFP.

Furthermore, 6(12.5%) of the respondents strongly agree with operations are cost effective, 30(62.5%) agree, no respondents were not sure, 7(14.6%) of the study respondents disagree and 5(10.4%) strongly disagree. This implies that majority of the respondents were positive with 75% meaning there has been improved performance which may be attributed to the application of computerized procurement.

Finally, study findings in the table 4.9 above show that 15(31.3%) strongly agree with responsiveness has been ensured, 10(20.8%) of them agree, 8(16.7%) of the respondents were not sure, 9(18.8%) disagree and 4(8.3%) of the respondents strongly disagree. This implies that majority of the respondents 25(52.1%), hence there is improved organizational performance at UNWFP.

CHAPTER FIVE

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction

This chapter presents the discussion, summary, conclusion and recommendation of the findings presented   in the previous chapter. The summary focuses on the finding in relation to the objective of the study to achieve. The summary is followed by the conclusion which is also based on the findings of the study and the finally the recommendation.

Discussion of major findings

5.1.1 Effect of computerized procurement on procurement cost efficiency 

According to Table 4.5 above shows that, 36(75%) of the respondents strongly agree with computerized procurement has helped the UN WFP to minimise total procurement costs, 30(62.5%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of contract creation/drafting, 35(72.9%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of advertising and solicitation, 24(50%) of the respondents strongly agree with computerized procurement has helped the UNWFP to reduce cost of contract evaluation and selection, 28(58.3%) of the respondents agree with computerized procurement has helped the UNWFP to reduce payment approval and transfer costs. This implies that most procurement activities in UNWFP are done online. These findings are in line with Chaffey (2007) who urged that computerized procurement today is a vital asset to any organization. This is because it’s the major driver in cost reduction, record management and timely transfer of information in the supply chain, Easy and quick selection and identification of potential suppliers and customers, quick placement of orders and quick deliveries among others. Hence quick selection and identification of potential suppliers online enables the Organization to acquire the best products in the shortest time possible and at fairly low prices, hence improving performance in UN World Food Programme (WFP) Uganda- Country Office.

Results in table 4.6 in chapter four indicated that, 38(79.2%) strongly agree with computerized procurement ensures transaction costs are minimized, 46(95.8%) of the respondents strongly agree with computerized procurement has improved transparency, 31(64.5%) of the respondents strongly agree with computerized procurement has reduced human capital, 47(97.9%) of the respondents strongly agree with computerized procurement has reduced the costs of ordering, 30(62.5%)of the respondents strongly agree with computerized procurement has led to increased contract compliance. This implies that in UNWFP there is improved contract compliance as a result of computerized procurement. These findings line with (Mukhopadhyay et al. 2002) who argued that accepting the notion that ICT reduces transaction costs, it is necessary to ask whether ICT leads to cooperation with a larger number of suppliers, or to a close integration with few partners. The former is suggested by the fact that new technologies lower searching and filtering costs and by increasing the number of sourcing options companies could intensify the competition between suppliers and increase their bargaining position. while Richard (1998), ICT helps to computerize the business process thus streamlining the transactions to make them extremely cost effective.

5.1.2 Effect of computerized procurement on procurement process time 

From table 4.7 in chapter four revealed that 23(47.9%) of the respondents strongly agree with computerized procurement has helped management reduced time spent on monitoring, 16(33.3%) of the respondents strongly agree with computerized procurement has reduced delivery time, 47(97.9%) of the respondents strongly agree with computerized procurement has reduced ordering time. This in turn has led to improved performance in the organization. This is in agreement with (Nelson et al. 2001) who argued that the arrival of the internet as a means of doing business has served as a medium for major changes in the operation and status of organizational procurement. It is evident that information technologies have totally transformed the way organizations and governments operate 

5.1.3 Effect of computerized procurement on procurement process reliability 

Study findings in Table 4.8 in chapter four showed that, 38(79.2%) strongly agree with computerized procurement has improved transparency, (79.2%) strongly agree with there is no longer misplacement of the documents, 19(39.6%) strongly agree with computerized procurement has reduced the risk of theft, 40(83.3%) of the respondents strongly agree with there are minimal errors. This implied that computerized procurement has fostered organizational performance. This is in line with (Neef, 2001) who argued that procurement process is often prone to errors in typing, either intentional or unintentional. With the use of computerized procurement process, all these errors can easily be noted by all the members of the organization and corrective action may be taken to avoid losses on either the supplier or the client’s side.

• Summary

The study found out that computerized procurement ensures transaction costs are minimized, improved transparency, reduced human capital, reduced the costs of ordering, led to increased contract compliance. This implies that in UNWFP computerized procurement has improved procurement cost efficiency.

The study also found out that computerized procurement has helped management reduced time spent on monitoring, reduced delivery time, reduced ordering time. This in turn has led to improved performance in the organization since the procurement process time has been improved.

Study findings indicated that computerized procurement has improved transparency, reduced the risk of theft, minimized errors and there is no longer misplacement of the documents. Therefore, computerized procurement has procurement process reliability.

• Conclusion

The study found out that computerized procurement ensures transaction costs are minimized, improved transparency, reduced human capital, reduced the costs of ordering, led to increased contract compliance. Computerized procurement has also helped management reduced time spent on monitoring, reduced delivery time, reduced ordering time. Computerized procurement has improved transparency, reduced the risk of theft, minimized errors and there is no longer misplacement of the documents. And as a result of computerized procurement, organizational performance has been improved.

5.4 Recommendation

From findings, the organization faces a challenge of limited finance allocated to e-procurement implementation, thus, the researcher recommends that the government should allocate more funds aimed at improving the computerized procurement function in the organization.

From findings, the organization is faced by lack of skill among employees, the researcher recommends that employees need to be trained on usage of the computerized procurement system. This will enable them to operationalize the system. There is also need for the organization to integrate the various functions so that procurement can thrive. 

From findings, the organization faces a challenge of a lot of documentation when employing e-procurement, therefore the researcher recommends that the website of the organization need to be regularly updated with the latest information concerning procurement activities. Suppliers should be encouraged to summit their quotations online.

5.5 Areas for further research

A study should be carried out to establish the reasons behind low utilization of e-procurement among commercial state corporations in Uganda even after the system has been fully installed. 

There is need to conduct a comparative study of the effects of e-procurement on performance of the private sector companies and those in the public sector. This will assist in coming up with similarities and differences that can serve as benchmarks.

APPENDICES

APPENDIX I: QUESTIONNAIRES

Dear respondent

I am Wasswa Daniel, Reg No. 14/U/10562/PLE/PE, a student of Kyambogo University pursuing a Bachelor’s Degree in Procurement and Logistics Management.  I am carrying out research on the effect of computerized procurement on the organizational performance, A case study of UN World Food Programme- Uganda Country Office. I humbly request you to spare some few minutes of your time and answer these questions below. The study is strictly for academic purposes and was treated with utmost confidentiality. Your cooperation is highly appreciated. 

SECTION A: Respondent’s Information 

SECTION B: Computerized procurement in UN World Food Programme- Uganda Country Office

7. Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA). 

Section C: The effect of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office

8. What is the effect of computerized procurement on procurement cost efficiency in UN World Food Programme- Uganda Country Office? 

Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA). 

SECTION D: The effect of computerized procurement on procurement process time in UN World Food Programme- Uganda Country Office

9. What is the effect of computerized procurement on procurement process time in UN World Food Programme- Uganda Country Office? 

Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA). 

SECTION E: The effect of computerized procurement on procurement process reliability in UN World Food Programme- Uganda Country Office

10. What is the effect of computerized procurement on procurement process reliability in UN World Food Programme- Uganda Country Office? 

Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA). 

SECTION F: Organization performance in UN World Food Programme- Uganda Country Office

11. Please tick the best option by using Strongly Disagree (SD), Disagree (D), Not Sure (NS), Agree (A), and Strongly Agree (SA). 

Thank you for your time