Evaluation of Adopting E-Procurement and Its Impact on Performance in Apparel Supply Chain in Sri Lanka

Author(s):

  • M.U.G. Jayawardhena (Department of Transport & Logistics Management, University of Moratuwa)
  • Pradeepa Jayaratne (Consultant / Researcher in Transport and Logistics/Supply Chain Management)
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Abstract:
Apparel industry is one of the key industries in Sri Lanka which represents over 7% of Sri Lanka’s GDP and employs directly about 15% of the country's workforce. Procurement plays a major role in apparel value chain in determining the cost and quality of the end products. With the development and increment of the use of technology, shifting to E-procurement has become vital in business world mainly because of the benefits it provides to the organization. In Sri Lanka most of the organizations have started the use of e-procurement blindly without estimating the costs or benefits resulted. This research aims to measure the effect of using e-procurement on performance of apparel supply chain and tries to identify the barriers and benefits on usage of E-procurement. The study was conducted using information collected from apparel organizations who are currently using e-procurement with the objective of supporting the apparel organizations which are planning to implement e-procurement in future. Objectives of the research were achieved by using statistical techniques; exploratory factor analysis, confirmatory factor analysis and structural equation modelling. The study concludes that eprocurement usage positively impacts on the performance of apparel organizations. Moreover, it shows that barriers in E-Procurement can be categorized to three main categories; namely, Organizational barriers, HR related barriers and External barriers while most prominent benefits of implementing E- Procurement in an apparel organization are elimination of paperwork & improved transparency in transactions.
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@inproceedings{oscm-2019-484,
  title={Evaluation of Adopting E-Procurement and Its Impact on Performance in Apparel Supply Chain in Sri Lanka},
  year={2019},
  author={M.U.G. Jayawardhena and Pradeepa Jayaratne},
  booktitle={Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019},
  doi={10.31387/oscm410213}
}
M.U.G. Jayawardhena, Pradeepa Jayaratne (2019). Evaluation of Adopting E-Procurement and Its Impact on Performance in Apparel Supply Chain in Sri Lanka. In Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019. https://doi.org/10.31387/oscm410213