Assessing the effect of E-Procurement on the performance of selected local suppliers in the manufacturing sector in Zambia: A Case of Chilanga Cement

Abstract

Despite the potential benefits of e-procurement, there is a lack of comprehensive understanding of how its successful implementation directly affects the overall performance of manufacturing companies in Zambia. This study aims to fill this research gap. The objectives of this study were to assess how the e-tendering process influences the supply chain performance of Chilanga Cement, examine the effect of e-sourcing on the supply chain performance of Chilanga Cement, and determine the effect of e-invoicing on the supply chain performance of Chilanga Cement. The study employed a mixed research approach and embedded design. Purposive sampling techniques were used to gather primary data through meticulously designed questionnaires from a sample size of 97 respondents, consisting of 80 suppliers and 17 employees of Chilanga Cement. Secondary data was gathered from scholarly sources. Statistical tools including SPSS vs27 were utilized for data analysis, employing regression analysis to assess the effect of e-procurement variables on supplier performance. The study's findings revealed that e-tendering significantly influenced supplier performance by expediting procurement cycles, enhancing transparency, and fostering robust supplier relationships. E-sourcing displayed a positive relationship with supplier performance by impacting financial transactions, reducing errors, and optimizing cash flow management. Similarly, e-invoicing showcased a strong link with improved supplier performance, expediting payment processes and promoting seamless stakeholder interoperability. The findings highlight the transformative potential of e-procurement in improving supplier performance within the manufacturing sector in Zambia. The study offers actionable recommendations for Chilanga Cement, emphasizing strategic implementation, targeted training, and ongoing evaluation of e-procurement tools. These findings have larger implications for understanding the impact of e-procurement on organizational performance and provide insights for companies considering implementing e-procurement systems. Recommendations for further research include exploring the impact of e-procurement across different industries in Zambia, conducting longitudinal studies to assess long-term effects, examining the role of organizational factors in successful e-procurement adoption, and investigating potential synergies between e-procurement and emerging technologies such as blockchain and artificial intelligence. Key words. E-invoicing, e-sourcing, e-tendering, e-procurement, performance.