Effectiveness of E-Procurement in Malaysia

Previous studies on E-Procurement in Malaysia were focused on the implementation of this system within the industrial sector and studies on the impact of internally developed system are lacking. Since there is not many studies E-Procurement system that is developed internally by Malaysian organizations, the initiative taken by TM Berhad to develop its own E-Procurement system internally, is considered a wise step. As such, this study aimed to identify several issues effect the Efficiency in E-Procurement system in Malaysia. Knowing and understanding the E-Procurement system are the first steps to motivate companies to implement the system. Thus, it is important that this study carried out to investigate the practice and performance of the E-Procurement systems that are developed internally by organizations and identify the difficulties faced. This study is also appropriate to understand the problems faced throughout the implementation of the E-Procurement system. The survey results suggest that e-procurement technologies will become an important part of supply chain management and that the rate of adoption will accelerate as aggressive adopters share their experiences and perceptions of low risk. The research prove that the factors affecting the success of e-procurement system sharing between supply chain integration, information sharing and partner relationships. Based on the understanding those factors the research provides suggestions on how to improve e-procurement system in TM Berhad.