ISSUE 9: AS PROCUREMENT IS A CRITICAL

FUNCTION IN GOVERNMENT, IDENTIFY

THE FACTORS FOR TRANSFORMING
PROCUREMENT TO E-PROCUREMENT
 Contents

Factors for
transforming
procurement to e-
Reference
procurement
01 02 03 04

Introduction Conclusion
 INTRODUCTION

What is procurement
in public sector?

Is a process of public sector body acquiring or obtaining any goods,

works or services from other companies or external sources (Vaidya,
2006).
Government Procurement Process
 Procurement Objectives:
To ensure continuous supply
of materials and services to
meet the Government needs
from the best and reliable
sources
To expand and invigorate the
local industrial sector by
means of transfer of
technology and expertise to
suit the nation's needs
To ensure efficient, effective
and ethical procurement
practices to enable the
Government to achieve best
value for money without
compromising on quality,
delivery and other price and
non-price factors
To stimulate and encourage
the growth and development
of local industries through the
optimal usage of local
resources and materials
To promote alternative and
multiple sourcing through
supplier/vendor development
according to the aspirations
and vision of the
Government.
 Government Procurement Principles:
● Public Accountability- Procurement should obviously reflect public accountability
entrusted with the Government.
● Transparency- All procurement regulations, conditions, procedures and processes
need to be clear and transparent to facilitate better understanding among suppliers
and contractors.
● Value For Money- Government procurement should yield the best returns for every
Malaysian Ringgit spent in terms of quality, quantity, timeliness, price and source.
● Open And Fair Competition- Processes involving Government procurement should
offer fair and equitable opportunities to all those participating or competing in any
procurement.
● Fair Dealing- All acceptable bids will be processed fairly based on current rules,
policies and procedures.
 Discussion on Issue 9
Procurement
Issues
Noted by Kiarie (2011)
procurement has often
resulted in inefficiencies, low
transparency and low service
quality as well as weak
oversight roles, delays, poor
linkages between
procurement and
expenditures, and poor
record management.
E-procurement E-procurement aim:
A system in electronic
format that enables To make the purchasing
suppliers to offer their process of goods and
products and services to services more
the Government through economical, efficient, and
the Internet. With the use effective, to reduce
of the electronic based corruption and conspiracy
applications the and to increases
government is expected to
transparency and
save cost, time and energy
accountability as well
when the paperless
(Ari, 2019).
concept is fully adopted.
 BENEFITS OF E- LIMITATIONS OF
PROCUREMENT E-PROCUREMENT

o Over reliance on
o Reduced Costs technology and the
o Transparent Spending disabling of due
o Increased Productivity diligence.
o Eliminating Paperwork o Costly
o Increased Complexity
o Poor Integration with
existing systems
 E-Procurement platforms:

● e-Perolehan:
E-Perolehan (which translates to E-Procurement) is a platform used by the Malaysian
government to dive into the new economy and promote e-Business in the country. It is
stated to lower the operational cost for the government over time.
● Procurehere
● Oracle Procurement Cloud
FACTORS TRANSFORMING PROCUREMENT
TO E-PROCUREMENT

1) Factors Influencing The Implementation Of Government

Electronic Procurement System In The County
Government Of Nyamira, Kenya
Nyaporo, A. R., & Aambo, D. W. (2017)
 Research

Objectives

● The main objective of the study was to examine the factors influencing the
implementation of government electronic procurement system in the
county government of Nyamira.
Specific Objectives:
● To establish the influence of e-procurement readiness on the
implementation of government electronic procurement system in the
county government of Nyamira.
● To examine how user training influences the implementation of
government electronic procurement system in the county government of
Nyamira.
Factors Influencing The Implementation Of Government Electronic Procurement System In The County Government Of Nyamira, Kenya by Nyaporo, A. R., &
Factors Influencing The Implementation Of Government Electronic Procurement System In The County Government Of Nyamira, Kenya by Nyaporo, A. R., &
 Research

Methodology

● Quantitative method (Survey/ Questionnaire)

● 37 respondents from 11 departments in the County Government
of Nyamira have been collected

Factors Influencing The Implementation Of Government Electronic Procurement System In The County Government Of Nyamira, Kenya by Nyaporo, A. R., &
 Research

Findings E-procurement
readiness Aspect

Factors Influencing The Implementation Of Government Electronic Procurement System In The County Government Of Nyamira, Kenya by Nyaporo, A. R., &
 User Training Aspect

Factors Influencing The Implementation Of Government Electronic Procurement System In The County Government Of Nyamira, Kenya by Nyaporo, A. R., &
FACTORS TRANSFORMING PROCUREMENT
TO E-PROCUREMENT

2) Critical Success Factors of Electronic Procurement

Implementation in The Ministry of National Development
Planning/Bappenas Republic of Indonesia
Prasetyo, A. (2019)
 Research

Objectives

Problem Statement:
● To this regard, one of the efforts to close the gap of potential corruption in
the procurement process is implement the electronic government
procurement (e-procurement), by implementing the e-procurement closes
the chance of conspiracy, increasing transparency and accountability of
budgeting process (KPK, 2015).
Objectives:
● This research aimed to describe the implementation of e-procurement and
identify the Critical Success Factors (CSFs) which supported the successful
implementation of e-procurement in ministerial level.

Critical Success Factors of Electronic Procurement Implementation in The Ministry of National Development Planning/Bappenas Republic of Indonesia
 Research

Methodology

● This method combined the qualitative research to analyze the

successful implementation of e-procurement in Bappenas and the
quantitative research with Exploratory Factor Analysis (EFA) to
identify the CSFs’ influences toward the successful e-procurement
implementation in Bappenas.
● Total respondent of this survey is 75 people. The occupation of
respondents are civil servant 60% while private are 40%.

Critical Success Factors of Electronic Procurement Implementation in The Ministry of National Development Planning/Bappenas Republic of Indonesia
arch

Findings

Critical Success Factors of Electronic Procurement Implementation in The Ministry of National Development Planning/Bappenas Republic of Indonesia
 Conclusions
1st Article
The study concluded that e-procurement
readiness in Nyamira County Government was
readily implemented despite the challenges of
applying e-procurement like lack of cooperation
from top management ineffective computer
system, long lead-time and incorrect stock
status and lack of supplier cooperation.
In the study it was concluded that user training
influenced the effective implementation of the
government e-procurement system in Nyamira
County through trained staff being able to use
the system well. The fundamental aim of
training is to help the organization achieve its
purpose by adding value to its key resources the
people it employs.
2nd Article
This research generated valuable contributions in
identifying the critical success factors that affect the
success of e-procurement implementation in Bappenas.
However need to stress two factors was missing:
 The system integration, accordingly the result shows
that the integration, interconnection and
interoperability of e-procurement system with other
systems are low.
Performance measurement, this could be
understandable, because the measurement could not
be implemented since Bappenas applied the ad hoc
personnel and non-permanent structural organization
in performing the e-procurement.
 References
Nyaporo, A. R., & Atambo, D. W. (2017).
01
Factors Influencing The Implementation Of
Government Electronic Procurement System In
The County Government Of Nyamira, Kenya.
IOSR Journal of Business and Management,
19(03), 69–79. https://doi.org/10.9790/487x-
1903026979
MyGOV - The Government of
Malaysia’s Official Portal. (2011).
03 MyGOV.
https://www.malaysia.gov.my/portal/co
ntent/30698
04
Prasetyo, A. (2019). Critical Success Factors of
02 Electronic Procurement Implementation in The
Ministry of National Development
Planning/Bappenas Republic of Indonesia. Jurnal
Perencanaan Pembangunan: The Indonesian
Journal of Development Planning, 3(1).
https://doi.org/10.36574/jpp.v3i1.60
Brandon-Jones, A., & Kauppi, K. (2018).
Examining the antecedents of the technology
acceptance model within e-procurement.
International Journal of Operations &
Production Management, 38(1), 22–42.
https://doi.org/10.1108/ijopm-06-2015-0346
Thank You!