E-Procurement Concept - Digital Transformation of an SME's Procurement
The digitalisation of a procurement department of a small and medium-sized enterprise (SME) - Assessment of the maturity level to determine the most significant potential of digitalisation
Marc Straehl, 2021
Bachelor Thesis, Halag Chemie AG
Betreuende Dozierende: Michael H. Quade
Keywords: e-procurement, digital transformation, maturity model, electronic data interchange
The enterprise, which operates in the chemical industry, employs 60 people. The company's current procurement processes reflect partial inefficiency, adding to length and complexity. Therefore, two research questions have arisen: Where is the most significant potential with regard to the digitalisation of procurement, and does it make sense to implement it? In conclusion, the thesis aims to evaluate the current maturity level of procurement, from which the potentials concerning digitalisation is derived. Finally, a recommendation for the implementation of the potentials is given.
The methodology follows a triangulation approach in which the research questions are examined from both quantitative and qualitative perspectives and relies on existing literature. The qualitative method is a maturity model used to determine the maturity of the company's procurement. On the other hand, the quantitative analysis examines the attitude of suppliers towards the company concerning digitalisation. Finally, in order to make a recommendation, the economic efficiency and advantages of each digitalisation approach are evaluated.
The qualitative method indicates that the most significant potential comes from the digitalisation of processes and the connection to suppliers. Four electronic data interchange (EDI) approaches are evaluated concerning their advantages, disadvantages and economic efficiency in order to be able to implement this potential in the company. The quantitative online survey with the suppliers concludes that suppliers have limited experience or knowledge of electronic data exchange. However, the strategic suppliers of the enterprise are interested in EDI or will introduce electronic data exchange in the coming years. In conclusion, the EDI approach with the parent company is given as a recommendation. The implementation of EDI results, among other things, in faster processing times, a more efficient organisation of business processes and lower transaction costs. Furthermore, the investment is amortised after three years and the company benefits from synergies of the parent company.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Digitalisierung