ERP procurement process effectiveness of ABC apparels, Sri Lanka: a study from ERP user perspective

Abstract

This study analyses the factors influencing procurement process effectiveness from the ERP perspective in ABC Apparels, Sri Lanka. The company uses an ERP system for their SCM activities and for making strategic-level decisions. Procurement being a practice involving a substantial amount of money, the effectiveness of the ERP system is expected to be high. However, the management of the company has identified that its ERP procurement process effectiveness is low as observed through the increasing number of purchase order delay complaints from suppliers and increasing number of procurement-related ERP support issues that are unsolved. In order to understand the factors influencing the procurement process effectiveness, an in-depth literature review was conducted, and a conceptual framework was developed. Both qualitative and quantitative methods were used to conduct the research. Data analysis was done using reliability and consistency, correlation and regression. Research findings revealed that information quality, integration and usability are factors significantly influencing procurement process effectiveness. Finally, recommendations were provided to improve procurement effectiveness from an ERP perspective.