An evaluation of suppliers' perception of the effectiveness of procurement system in the steel sector

Sita Ramanjaneyulu Kokkiligadda; Rama Mohana Rao Katta; Chandra Sekhar Patro; Mallikharjuna Rao Jitta

doi:10.31893/multiscience.2024081

Keywords:

Abstract

The procurement process plays a significant role in the materials management system of an organisation. It entails the planning and implementation of supply chains to satisfy the needs of an organisation so that required actions can be adopted for boosting the productivity of the materials team thereby increasing production. The steel sector faces challenges in adhering to procurement criteria, including tendering, evaluation, holding auctions among technically and commercially qualified bidders, and completing plant needs on time. The present study analyses the efficacy of the procurement system. The results indicate that the dimensions transparency, adaptability, ease of use, and grievance redressal are significantly associated while the timely payment is not significantly associated with the procurement system of the organisation. The findings of the study can enable the steel organisations to develop the necessary strategies for improving the procuring system.
References
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2. Adinyira, E., Agyekum, K., Manu, P., Mahamadu, A. M., & Olomolaiye, P. (2022). Lessening procurement deviations using procurement post reviews: evidence from Ghana. Journal of Financial Management of Property and Construction, 27(2), 199-219.
3. Agarchand, N., & Laishram, B. (2017). Sustainable infrastructure development challenges through PPP procurement process: Indian perspective. International Journal of Managing Projects in Business, 10(3), 642-662.
4. Altayyar, A., & Beaumont-Kerridge, J. (2016). External factors affecting the adoption of e-procurement in Saudi Arabian's SMEs. Procedia-Social and Behavioral Sciences, 229, 363-375.
5. Alvarez-Rodríguez, J. M., Labra-Gayo, J. E., & de Pablos, P. O. (2014). New trends on e-Procurement applying semantic technologies. Computers in Industry, 65(5), 797-799.
6. Ambekar, S. S., Deshmukh, U., & Hudnurkar, M. (2021). Impact of purchasing practices, supplier relationships and use of information technology on firm performance. International Journal of Innovation Science, 13(1), 118-130.
7. Changalima, I. A., Ismail, I. J., & Mwaiseje, S. S. (2022). Obtaining the best value for money through procurement planning: can procurement regulatory compliance intervene?, Journal of Money and Business, 2(2), 133-148.
8. Daniel, C. O. (2019). Effects of Materials Management on the Productivity of an Organisation. World Journal of Innovative Research (WJIR), 6(1), 16-22.
9. Hallikas, J., Immonen, M., & Brax, S. (2021). Digitalizing procurement: the impact of data analytics on supply chain performance. Supply Chain Management: An International Journal, 26(5), 629-646.
10. Hasmukhbhai, P. P. (2016). A Study of e-Procurement Practices in Selected Organizations in Gujarat (Doctoral dissertation, Faculty of Economics and Business (FEB), University of Maribor, Slovenia).
11. Hong, Z., Lee, C. K. M., & Zhang, L. (2018). Procurement risk management under uncertainty: a review. Industrial Management, 118, 1547-1574.
12. Hungund, S., & Mani, V. (2019). Benchmarking of factors influencing adoption of innovation in software product SMEs: An empirical evidence from India. Benchmarking: An International Journal, 26(5), 1451-1468.
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15. Kulkarni, V., Sharma, R., Hote, M., & Civil, M. E. (2017). Factors affecting material management on construction site. International Research Journal of Engineering and Technology, 4(1), 474-478.
16. Kunnapapdeelert, S., & Thepmongkorn, S. (2017). Empirical Study of e-Procurement Adoption in Thailand. International Journal of e-Education, e-Business, e-Management and e-Learning, 7(4), 246-254.
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23. PIB. (2023). Year-end Review-2022 Ministry of Steel. Retrieved from https://pib.gov.in/PressReleaseIframePage.aspx?PRID= 1886625
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25. Rath, P. K., & Ram, B. M. V. (2021). Impact of COVID 19 on Steel Industry–A case Study of RINL, Visakhapatnam Steel Plant. International Journal of Engineering and Management Research, 11(4), 115-127.
26. Rogers, H., Srivastava, M., Pawar, K. S., & Shah, J. (2016). Supply chain risk management in India–practical insights. International Journal of Logistics Research and Applications, 19(4), 278-299.
27. Sani, S. M. (2020). Factors Affecting Material Management of Construction Projects in Gurage Zone (Case of Wolkite Town). MBA Thesis, Wolkite University, Wolkite Ethiopa.
28. Saroha, M., Garg, D., & Luthra, S. (2020). Pressures in implementation of circular supply chain management for sustainability: An analysis from Indian industries perspective. Management of Environmental Quality: An International Journal, 31(5), 1091-1110.
29. VoltaGreen. (2018). Challenges faced by the Indian Steel Industry. Retrieved from https://voltagreens.com/challenges-faced-by-the-indian-steel-industry/
30. VSP. (2021). Overview Steel Sector. Retrieved from https://steel.gov.in/overview-steel-sector
31. VSP. (2022). About Materials management department. Retrieved from www.vizagsteel.com/
32. Weforum. (2020). Visualizing 50 years of global steel production. Retrieved from https://www.weforum.org/
33. Windapo, A. O., Olugboyega, O., &Odediran, S. (2020). Impacts of procurement strategies on construction SMEs’ growth. Journal of Financial Management of Property and Construction, 25(3), 423-446.
34. WSA. (2022). World crude steel production 1950 to 2021. Retrieved from https://worldsteel.org/steel-topics/statistics/world-steel-in-figures-2022/#world-crude-steel-production-1950-to-2021/

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Kokkiligadda, S. R., Katta, R. M. R., Patro, C. S., & Jitta, M. R. (2023). An evaluation of suppliers’ perception of the effectiveness of procurement system in the steel sector. Multidisciplinary Science Journal, 6(6), 2024081. https://doi.org/10.31893/multiscience.2024081

[1] Addo, S. K. (2019). Challenges of E-Procurement Adoption in the Ghana Public Sector: A Survey of in the Ministry of Finance. Scholarly Journal of Arts & Humanities, 1(7), 44-80.

[2] Adinyira, E., Agyekum, K., Manu, P., Mahamadu, A. M., & Olomolaiye, P. (2022). Lessening procurement deviations using procurement post reviews: evidence from Ghana. Journal of Financial Management of Property and Construction, 27(2), 199-219.

[3] Agarchand, N., & Laishram, B. (2017). Sustainable infrastructure development challenges through PPP procurement process: Indian perspective. International Journal of Managing Projects in Business, 10(3), 642-662.

[4] Altayyar, A., & Beaumont-Kerridge, J. (2016). External factors affecting the adoption of e-procurement in Saudi Arabian's SMEs. Procedia-Social and Behavioral Sciences, 229, 363-375.

[5] Alvarez-Rodríguez, J. M., Labra-Gayo, J. E., & de Pablos, P. O. (2014). New trends on e-Procurement applying semantic technologies. Computers in Industry, 65(5), 797-799.

[6] Ambekar, S. S., Deshmukh, U., & Hudnurkar, M. (2021). Impact of purchasing practices, supplier relationships and use of information technology on firm performance. International Journal of Innovation Science, 13(1), 118-130.

[7] Changalima, I. A., Ismail, I. J., & Mwaiseje, S. S. (2022). Obtaining the best value for money through procurement planning: can procurement regulatory compliance intervene?, Journal of Money and Business, 2(2), 133-148.

[8] Daniel, C. O. (2019). Effects of Materials Management on the Productivity of an Organisation. World Journal of Innovative Research (WJIR), 6(1), 16-22.

[9] Hallikas, J., Immonen, M., & Brax, S. (2021). Digitalizing procurement: the impact of data analytics on supply chain performance. Supply Chain Management: An International Journal, 26(5), 629-646.

[10] Hasmukhbhai, P. P. (2016). A Study of e-Procurement Practices in Selected Organizations in Gujarat (Doctoral dissertation, Faculty of Economics and Business (FEB), University of Maribor, Slovenia).

[11] Hong, Z., Lee, C. K. M., & Zhang, L. (2018). Procurement risk management under uncertainty: a review. Industrial Management, 118, 1547-1574.

[12] Hungund, S., & Mani, V. (2019). Benchmarking of factors influencing adoption of innovation in software product SMEs: An empirical evidence from India. Benchmarking: An International Journal, 26(5), 1451-1468.

[13] IBEF. (2022). Iron and Steel Industry in India. Retrieved from https://www.ibef.org/industry/steel

[14] ISA. (2019). The Indian steel industry: Growth, challenges and digital disruption. Retrieved from https://www.pwc.in/assets/pdfs/consulting/technology/the-indian-steel-industry-growth-challenges-and-digital-disruption.pdf

[15] Kulkarni, V., Sharma, R., Hote, M., & Civil, M. E. (2017). Factors affecting material management on construction site. International Research Journal of Engineering and Technology, 4(1), 474-478.

[16] Kunnapapdeelert, S., & Thepmongkorn, S. (2017). Empirical Study of e-Procurement Adoption in Thailand. International Journal of e-Education, e-Business, e-Management and e-Learning, 7(4), 246-254.

[17] Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.

[18] Maddi, M. S., Davis, P., & Geraghty, J. (2020). Acceptance of E-procurement in Organisations: Using Structural Equation Modeling (SEM). International Journal of Database Management Systems, 12(2), 25-46.

[19] Nasidai, S. E. (2016). Factors Influencing Implementation of e-Procurement: A Case Study of Small and Medium-Size Businesses in Voi Town. European Journal of Logistics, Purchasing and Supply Chain Management, 4(6), 11-20.

[20] NSP. (2017). National Steel Policy, 2017. Ministry of Steel, Government of India. Retrieved from https://steel.gov.in/sites/default/files/NATIONAL_STEEL_POLICY_2017_0.pdf

[21] Olojede, B. O., Opawole, A., Jagboro, G. O., & Alao, O. O. (2023). Examination of roles performed by public sector organizations in the procurement of public-private partnership projects. International Journal of Building Pathology and Adaptation, 41(2), 495-511.

[22] Panigrahi, R. R., Mishra, P. C., Samantaray, A., & Jena, D. (2022). Management of inventory for firms’ efficiency–a study on steel manufacturing industry. Journal of Advances in Management Research, 19(3), 443-463.

[23] PIB. (2023). Year-end Review-2022 Ministry of Steel. Retrieved from https://pib.gov.in/PressReleaseIframePage.aspx?PRID= 1886625

[24] Rane, S. B., Narvel, Y. A. M., & Bhandarkar, B. M. (2020). Developing strategies to improve agility in the project procurement management (PPM) process: Perspective of business intelligence (BI). Business Process Management Journal, 26(1), 257-286.

[25] Rath, P. K., & Ram, B. M. V. (2021). Impact of COVID 19 on Steel Industry–A case Study of RINL, Visakhapatnam Steel Plant. International Journal of Engineering and Management Research, 11(4), 115-127.

[26] Rogers, H., Srivastava, M., Pawar, K. S., & Shah, J. (2016). Supply chain risk management in India–practical insights. International Journal of Logistics Research and Applications, 19(4), 278-299.

[27] Sani, S. M. (2020). Factors Affecting Material Management of Construction Projects in Gurage Zone (Case of Wolkite Town). MBA Thesis, Wolkite University, Wolkite Ethiopa.

[28] Saroha, M., Garg, D., & Luthra, S. (2020). Pressures in implementation of circular supply chain management for sustainability: An analysis from Indian industries perspective. Management of Environmental Quality: An International Journal, 31(5), 1091-1110.

[29] VoltaGreen. (2018). Challenges faced by the Indian Steel Industry. Retrieved from https://voltagreens.com/challenges-faced-by-the-indian-steel-industry/

[30] VSP. (2021). Overview Steel Sector. Retrieved from https://steel.gov.in/overview-steel-sector

[31] VSP. (2022). About Materials management department. Retrieved from www.vizagsteel.com/

[32] Weforum. (2020). Visualizing 50 years of global steel production. Retrieved from https://www.weforum.org/

[33] Windapo, A. O., Olugboyega, O., &Odediran, S. (2020). Impacts of procurement strategies on construction SMEs’ growth. Journal of Financial Management of Property and Construction, 25(3), 423-446.

[34] WSA. (2022). World crude steel production 1950 to 2021. Retrieved from https://worldsteel.org/steel-topics/statistics/world-steel-in-figures-2022/#world-crude-steel-production-1950-to-2021/

Abstract

References

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