Introduction
Trade is one of the significant economic ventures most individuals indulge in to earn a living. The hard economic times have forced most individuals to venture into businesses involving exchanging goods and services. In addition, most businesses aim at acquiring profits for their long-term success. However, some companies, especially small scale, require expertise to reach their full potential. Procurement is one of the best departments that guarantee a business the required profits. Procurement is the acquiring, sourcing, and paying for foods and services. Furthermore, procurement plays a significant role in a business by acquiring goods at affordable terms and prices. Most corporations require certain goods and services for their sustainability. However, the prices of these goods tend to be high, preventing the corporation from acquiring them. As a result, the procurement team steps in to acquire the goods on behalf of the corporation under reasonable terms and prices. Therefore, procurement intellectuals negotiate advantageous terms, develop supplier relationships, and streamline the procurement process.
Most corporations worldwide have taken their businesses to the next level. Technological advancements have played a vital role in advertising most businesses, increasing their profits. Communication technologies such as social media or emails and the internet have promoted the development of most small-scale businesses. Most employers have eased shopping by constituting online shopping, where customers can shop from the comfort of their homes or work using their gadgets. Both private and government organizations utilize technological advancement in the procurement processes, commonly known as electronic procurement. E-procurement plays significant roles, such as ensuring that the corporation complies with the company’s purchasing procedures. Most businesses aspire for effective performance and customer satisfaction, which is the same case in e-procurement (Nani & Ali, 2020).
However, factors such as merging or breaking up packages, bribery, reduced quality and quantity of goods and services, inflation prices, provider and merger collusion, and direct appointment constitute procurement deviations. Therefore, for e-procurement to be effective, the government must be accountable and transparent while prioritizing effectiveness and efficiency. Most government procurement activities utilize funding sources such as taxes. Most businesses practice corruption, such as false certification, when they do not follow the correct procedures or credentials to effectively operate without facing legal action. As a result, the local public contracting law requires the local contracting unit to consist of a committee, commission, county, or municipality to report. The matter must be reported to the county council or municipal attorney regarding the false certification including the name of the offender for appropriate action such as penalties to be taken against the offender (N.J.S.A. & N.J.A.C, 2014).
The procurement function has undergone a revolution over the past years through digital technologies. Evolving and modern technologies have been implemented and diffused constituting improved and efficient production. Similarly, technological advances in the procurement sector protect natural resources to reduce cumulative environmental effects (Singh et al., 2020). In addition, the internet has improved communication through information sharing using, and processing for organizational strategic advantage. Consequently, procurement helps organizations achieve sustainable results via production, growth, preservation, and management of ties with supply chains. E-procurement also allows corporations to utilize digital systems or the internet in conducting procurement procedures for increased productivity.
Conclusion
In conclusion, procurement plays a significant role in increasing the productivity of a business. Technological advancements have improved services offered in procurement improving communication. E-procurement is the most commonly used technological advancement that is commonly used worldwide which improved the efficiency and effectiveness of the procurement processes. As a result, most organizations achieve sustainable results regarding growth, production, and management of supply chain relationships.
Reference
Nani, D. A., & Ali, S. (2020). Determinants of Effective E-Procurement System: Empirical Evidence from Indonesian Local Governments. Jurnal Dinamika Akuntansi Dan Bisnis, 7(1), 33-50.
Singh, P. K., Ismail, F. B., Wei, C. S., Imran, M., & Ahmed, S. A. (2020). A framework of e-procurement technology for sustainable procurement in iso 14001 certified firms in malaysia. Advances in Science, Technology and Engineering Systems Journal, 5(4), 424-431.
N.J.S.A. 40A:11-1et seq & N.J.A.C. 5:34 (2014). New Jersey Local Public Contracts Law and Regulation. https://www.nj.gov/dca/divisions/dlgs/programs/lpcl_docs/Full%204-14%20LPCL-NJAC%20Reference%20Handb
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