Procurement Process in Supply Chain Management: An Empirical Study of ERP-Enabled Procurement Practices in an IT Solutions Organization

Abstract

Procurement is an essential element of supply chain management which aims to procure inputs, goods, services, and resources at the right time, from reliable suppliers, at competitive prices, and of the best quality. This study focuses on the procurement process followed in Femtosoft Technologies, an enterprise resource planning (ERP) software development company based in Chennai, India, and ERP's role in enhancing procurement practices. The descriptive research design was adopted, and the data were collected from 53 respondents, working in procurement, inventory, warehousing, finance, logistics, and operations through a questionnaire. Analysis of the primary and secondary data revealed that Femtosoft follows a systematic and well-planned procurement process, wherein purchase planning, selection of suppliers based on the set criteria, and effective interrelated coordination of procurement, warehousing, finance, and production activities take place. The study also found that ERP helps in making procurement efficient, timely, and accurate, while reducing paperwork and ensuring effective supplier relationship management (SRM), purchase order management, and informed decision-making based on real-time information. The findings also revealed the need for improving procurement practices by addressing issues that include lack of staff training, delays in the purchase approval process, and underutilizing the potential of ERP in procurement. KEYWORDS Procurement Process; Supply Chain Management; Enterprise Resource Planning (ERP); Supplier Relationship Management; Digital Procurement; Purchase Order Management; IT Industry