ABSTRACT

The study conducted was about Electronic Procurement on operations effectiveness in an organization .The research was conducted from Total Headquarters fuel selling company located on 71 h street, industrial area, Kampala city. Organizations are feeling the pain of depending on paper and people intensive processes, The study to find a solution to this problem was guided by these objectives: establishing the different forms of Electronic Procurement used, establishing the benefits that are realized from use of Electronic Procurement and finding out factors that hinder adoption and implementation of Electronic Procurement in an organization. The study used a descriptive research based on a sample size of 3 0 respondents. The researcher targeted staff from the purchasing department, stores, finance and user department. Questionnaires and interviews were the tools used by the researcher to collect data. The research findings were analyzed and presented using tables, charts and graphs. The researcher found out that organizations use different forms of Electronic Procurement, internet and Electronic Request for Quotation being the most widely used. Electronic Procurement is beneficial to both the organization and the industry at large thus much efforts should be put to this strategic function, however there are many set backs that affect the success of Electronic Procurement which need to be addressed with keen interest. The findings revealed that minimizing costs and improving organization's performance are the main benefits realized fi·om use of Electronic Procurement The researcher took keen interest to find out why the organization was finding it hard to fully install and depend on Electronic Procurement, It was found out that there were high costs involved related to installation, maintenance and supervision , low levels of technology advancement in the industry was also a major hindrance to the use of Electronic Procurement. Finally the researcher recommended that organizations should benchmark on other organizations that are using Electronic Procurement systems already so as to have an accurate cost- benefit analysis, refresher workshops should also be used so as increase on awareness about advantages of Electronic Procurement.