THE IMPACT OF AUTOMATED PROCUREMENT ON BUSINESS PERFORMANCE IN UGANDA; A CASE STUDY OF JAZZ SUPERMARKET, BUGOLOBI

ABSTRACT

Automated procurement (c-procurement) is a growing aspect of supply chain management and is

receiving a lot of attention from supermarkets globally. This is because there is stiff competition

in the supermarket industry and customers are exerting pressure on retailers in terms of; demand

variability, reduced lead-time, need for customized products and services. Therefore,

supermarkets can longer compete on cost reduction alone, but also on how efficient they can

procure their products and services. This study set to establish automated procurement systems

and performance of Jazz Supermarket, Bugolobi.

This research was carried out through a descriptive design. The target population of this study

was the staff of Jazz Supermarkets in Bugoloobi. Given that this is a relatively small population,

a census was used. The researcher mainly used descriptive statistics to analyze data. This

included frequency distribution tables and graphs. Performance of Jazz supermarket was

analyzed using correlation and regression analysis.

In order to establish the effect of c-procurement on the performance of Jazz supermarket,

regression analysis was employed. The study revealed that majority of Jazz Supermarket relied

on electronic mail and automated identification bar-coding systems to transact their procurement

operations more than any other systems mentioned to them. For instance, most branches

conimunicated orders through sending emails to suppliers’ sales agents via emails and this

hastened the period of delivery and confirmation of products being available or not. This ensured

that there was regularly and constant communication via email between supermarkets and their

suppliers. It was also established that time was saved and this propelled the retail chains to gain

competitive advantage in the supermarket industry. Moreover, accuracy of products ordered and

delivered was maintained when those systems were used.

Bivariate correlation results showed that there existed a significant positive effect of automated

procurement systems and performance of Jazz supermarket in Bugoloobi. Lastly, the results

established that the degree of correlation of the independent predictor (automation of

procurement systems) and performance of Jazz supermarket was not strong due to various

challenges stretching from; high cost of system implementation, slow user acceptance of new

automated procurement systems, lack of management support in adoption of new systems,

inadequate IT and networking infrastructure and inadequate employee training. These among

other factors mentioned affected effective utilisation of automation systems on performance of

Jazz supermarket, Bugoloobi,

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