An organisation has been permitted to process automatic inventory of buying materials and maintaining goods by procurement software program in computers.
This program can be used by pay electric bills, purchase and implement orders online.
But as per studies from Gebauer and Segev, the most common performed activity in business is direct procurement, as it produces final or completed goods from raw materials. According to survey by NAM, 20% purchase of raw materials produces 80% of total value of purchases.
The reserves from oil and gas have increased at peaks. Production enterprises, its exploration can at times get speculative and complex. Availability of assets is scarce and its prices are sometimes unattainable that it is equal to being non-existent.
The intention of this study is to bring to light, the impact of software (Procurement Management) in oil and gas industries in Nigeria.
Objectives:
The objective is to research how much supply chain is incorporated with internet availability, focusing mainly on E-procurement. This will help in identifying the strategies of how the application of procurement plays an important role for business succession of oil and gas industry in Nigeria.
Literature Review:
Procurement Software has successfully implemented in all the strategic activities of oil and gas industry, business, balance supply & needs and also on basic needs and requirements. The study of this software has also made mandatory in degrees so that students are aware about this strategy.
What is E-Procurement?
E-Procurement is similar to E-commerce and it is designed to simplify and enhance efficiency to bring about low cost on operations. Procurement is also improves external and internal interaction, supply chain management and business transactions. This software consists of placing and tracking order web system, web catalogue and undertaking payment transactions online.
E- Procurement specializes in management, incorporation, automation and empowerment and it also engages in electronic technology, web based applications and tools.
This process serves to put down cost of company’s direct and indirect purchases. The categorization of direct and indirect purchases is that direct purchase comprises of raw materials and partial completed goods whereas indirect are not completely finished goods which needs internal business activity.
Implementation and Impact of E-Procurement:
There are many advantages procured with application of E-procurement and it is also proved to successfully impact the business when applied. Some of the tangible advantages comprises of diminishing cost of supply and time saving; intangible advantages are organisational advantages and integrated process amelioration.
As per the study of Barclay, it directs to 5 impacts of E-Procurement; change in organisational attributes, governance structure and change in total cost of acquisitions, management system pattern and it’s enforces.
Strategies of E-Procurement:
As per studies from Cheng, when the organisation acquires to work fully online, they also make investigate if the business assets bought could be supplanted with substitute. Many organizations require a set of items that would not work well with frameworks of e-obtainment. Another investigation included competition between suppliers. When business purchases stock, they also secure and endure the model, associated with the supplies, from the suppliers that are competitors and not a part of e-acquisition system. The organization also takes cares to have productivity from their internal methodology. Organisations should be aware that if they don’t purchase on ample amount, the strategy of e-procurement will not be beneficial.
Procurement Software:
An influential programming by Coupa is cloud obtainment program which carries the simplicity of e-business and narrow minded practicality into acquirement workflow. This software programs deals with numerous monetary transactions and jargons with the utilization of Coupa’s methodology.
The programming can also be designed for multiple commercial ventures like nourishment, drink, pharmaceuticals, biotechnology and attire. Coupa helps to strategize and stay inside the plan made by its executive board members. It also pushes the representatives and prepares to work in such a way to spare expensive activities.
Research Methodology:
A). Research design:
The importance of E-procurement will be analyzed to see if the application and efficiencies of the software is benefiting the oil and gas company. It will provide initial factual data to support the concept of e-procurement software application and this application categorises the capability to serve the supply chain.
Data Collection:
Data will be collected from procurement managers, once the secondary analysis is done. Collection of data will be in the form of questionnaire which will be sampled from oil and gas sector in Nigeria.
Questionnaire form is unbiased and authentic information could be collected from each individual from involved in the organisation.
Data Analysis:
The descriptive statistics will be used to analyse data with the help of dispersion measures and central tendency. Below are the arithmetic values
