Introduction
Technology is essential to the modus operandi of every contemporary organization. As such, IT procurement is referred to as a collection of procedures for acquiring and deploying information technology (IT) strategies and types of equipment in a manner that is consistent with the plan of an organization (De Araújo et al., 2017). Therefore, acquiring information technology products and initiatives is an essential component of the success of any corporation. Despite this, the environment around the procurement process of IT is sometimes onerous, inefficient, and complicated (Kakwezi & Nyeko, 2019). In addition, the present procurement acquisition methods do not necessarily provide any incentive for using creative and contemporary information technology development and buying approaches. During the analysis of the literature review, the typical concern was the use of obsolete methods of the acquisition process in procurement. For instance, most papers highlighted the limits, slowness, and uncertainty of the procurement process as essential problems in acquiring information technology (IT). The lengthy development and lead times and the higher expenses caused by maintaining the current systems while simultaneously constructing a new contemporary system provide substantial issues for the agencies tasked with modernizing their legacy information technology (IT) systems. Overall, the acquisition process in IT procurement is an immediate integral part of organizations, and a loophole within its process can obstruct the entire organization’s operation.
Method of Approach
By utilizing a literature analysis, the relationship between IT and their procurement process was analyzed. Using a predefined approach to aggregate and assess the issue’s state, such a review appears exhaustively for relevant earlier research on a certain topic to synthesize and evaluate the topic’s status (Snyder, 2019). By Gunasekaran et al. (2017), it is accepted that the evaluation may not be thorough. Still, it does give unbiased views into the state-of-the-art IT acquisition processes challenges to accomplish smooth business operations. The search encompassed solely English papers with peer reviews. As such, the methodology is identical to the prior evaluation (Haradhan Kumar Mahajan, 2018) and with the notion of befitting substantiation, which suggests that the evaluation of study quality is inferior to the assessment intent. Furthermore, the focus should be on how the evidence supplied adds to synthesis and comprehension.
“Information technology” was employed as the key phrase in the title and abstract of each publication, and then searched for “acquisition procurement” was in the body of each article. The usage of key terms is consistent with previous research on the subject (for instance, Alsmadi, 2019). Henceforth, the research sought to comprehend the contribution trend for the five years from 2017. Because Gunasekaran et al. (2017) offered a review of the challenges in acquiring IT and systems for supply chain integration and management till 2022, this study adds to this work, pulling on studies published after 2017. Therefore, debunking the chief issues in the procurement acquisition process.
The study bolstered the sampling procedure by alternating keyword searches based on the three most significant competitive factors and personally examining each article for any mention of the issues of the IT acquisition process. For instance, the research did not include IT since IT was not the emphasis of the study; hence, we did not include their work in the agile classification, although it covered the precursors and enablers of supply chain agility. However, following the sample criteria, studies were included that describe information technology and procurement acquisition qualities in the text, even when these terms were not included in the abstract. Following prior studies, notes were taken on the papers, and discoveries throughout the research formatted the literature review that conducted the overall qualitative analysis.
Findings
The purpose of this chapter, its findings, and its analysis is to compile and evaluate the research data gathered from the literature review to determine the effects of the procurement system acquisition process. The information from the works examined the data by sampling the abstracts of the articles and, after that, reading the full articles. The findings reveal the following major problems that prevent seamlessness in the procurement system acquisition process.
Internal Communication Deficit
From the literature analysis, procurement teams have a special situation inside businesses; the role is not directly associated with any one unit, nor does it have unrestricted accessibility to each department’s data. In addition, expenditure data often originates from several systems and is challenging to consolidate. Without feedback and vital data points from various teams, the IT procurement team cannot make good spending choices that will benefit the business if it makes purchases in isolation (Hamza et al., 2017). Moreover, when IT procurement teams collaborate with all major stakeholders and have insight into expenditure in all areas, they give the most outstanding value. Interactions are vital in developing relationships with internal partners to foster cross-functional cooperation and strive to maintain a thorough awareness of stakeholders’ demands throughout time.
Difficulty in Tracking Contracts
Moreover, the article analysis provided that supply agreements may be comprehensive, with varied terms, durations, timetables, and modifications. Further, numerous firms try to monitor contracts, which gives enough chance for mistakes manually. When required, it might be challenging to locate crucial information within the IT section. In this way, proposed price rises are susceptible to omission; hence, compliance concerns might be overlooked. Implementing a digital contract management system is one method to avoid these complications. This technology provides a consolidated, safe place for contracts, improving procurement efficiency and accuracy. It may also automate portions of the contract procedure, such as routine routing permits, online signings, and sending reminders for contract extensions and validity.
Inadequacy in Robust Technology
The summary of the literature analysis provided that corporations frequently strive to overcome their reluctance to use new procurement technology solutions. Traditional data gathering, gaining insights, and completing important procedures are inefficient and hinder scaling efforts (Bienhaus & Haddud, 2018). Manual methods are unlikely to achieve the outcomes required for procurement teams to become respected strategic partners. IT procurement plans should embrace the same digital transformation as the rest of the enterprise. Furthermore, modernizing systems and procedures may help enterprises and their suppliers solve pain points, optimize savings, decrease risk, and increase productivity. New technologies such as artificial intelligence and machine learning will enable teams to make more informed choices based on data. Thus, to offer a firm the greatest chance of success with new technology, begin with an honest evaluation of how your procurement function now operates and where it must be enhanced to serve the business programs better.
Non Transparent Purchasing
Non-transparent buying can also be referred to as dark buying of IT items such as laptops, which entails purchases conducted outside of the established procurement procedure, based on the summary of the articles. Such unregulated spending may be costly for firms in the long run. When commodities cannot be justified via capital expenditure or material inventories, the ensuing loss of income and control poses a substantial issue for businesses of all kinds. According to Hamza et al. (2017), litigating overall spending under control is a fantastic approach to minimizing uncontrolled spending. Critical recommendations were compiled as a free guide outlining the necessary solution.
Recommendations
In this case, to mitigate some of the threats in the procurement acquisition plan, it is crucial to enable improved communication to acquire a clear statement of need and collaborate with users to develop practical and realistic timetables that account for IT procurement lead time. Furthermore, contract management necessitates simple and attainable workforce collaboration. The lack of communication between departments will result in disputes. It also complicates the procedure of creating a formal contract. Additionally, Magano & Thomas (2017) insinuate that good coordination between those who sign the legal terms and conditions will result in a contract that accurately reflects the user’s needs. The most significant obstacle confronting the buying department is effective communication. Occasionally, contracts have been manually transferred internally, making them inaccessible to everyone who needs them. Therefore, involving just the appropriate team members was of the utmost importance, particularly when a single owner could manage the correct data.
In addition, Big Data and the ever-increasing significance of information technology have altered organizations’ perspectives regarding everything from their purchasing habits to the procurement procedures of Fortune 500 corporations. A rigorous procurement software package will provide them with the tools necessary to gather and evaluate transaction details for all items purchased (Bienhaus & Haddud, 2018). Additionally, they provide the capability to recognize user behavior and other data that facilitate the development of savvier procurement techniques and negotiate mutually advantageous agreements with their leading vendors.
It is considerably easier to negotiate when there is a unified document library with dynamically connected terms to authorize suppliers and rich transactional data that can be converted into reports for finance, advertising, and top management. Additionally, the company staff can generate new contracts based on existing templates, making review and certification much simpler (Hamza et al., 2017). Their legal team’s evaluation and approval of the contract ensures that the information included in the agreement is always correct and dated.
A cloud-based, core software procurement solution and artificial intelligence make it much simpler to set up a supplier portal and completely automate vendor assessment and IT administration. Organizations may monitor supplier performance and difficulties, find negotiating prospects if their requirements change, and drastically reduce costs by outsourcing a portion of their purchase to trustworthy partners with restricted system access (Bienhaus & Haddud, 2018). In addition, AI technology may decrease or avoid rogue expenditure by establishing and delegating authority for inquiries, approvals, and purchases and ensuring that the company receives the available discounts and pays its suppliers on time. Thorough documentation connecting purchase requisition to invoices and shipping documents helps expedite the procure-to-pay process, ensuring that the business does not lose potential value increases to additional staff hours or hiring.
It is difficult for possible future fraudsters to submit a falsified invoice or disguise mismanagement if there are straightforward and digitalized IT procurement features. This is because of restricted catalogs from authorized and recommended vendors, comprehensive transaction data with report cross-checking, and restricted catalogs from approved and favored distributors. Company safety will be increased, and it will be simpler to stop criminal activity in its tracks, thanks to the availability of a proper inspection trail for every operation and a process of approval that is entirely recorded.
Value of the Recommendations
Based on the literature analysis, it is contended that achieving a competitive advantage in efficient procurement methodology via IT depends on an organization’s capacity to use IT proactively and in concert with other resources to create seamlessness in acquisition. Equally, the competitive edge that firms who fail to develop the necessary IT skills to create the convergence of these traits may nevertheless be able to gain is temporary. As such, organizations that strive for feasible procurement will utilize IT to adapt to simple adjustments, but they will nevertheless be able to manage supply chain constraints and use firms’ IT proposals to exchange information and improve efficiency. Similarly, businesses should utilize IT to adapt to market changes if their main goal is adaptation. In this situation, big data analytics and forecasting technologies may assist firms in adapting to changes in the market and achieving high performance. Finally, striving to align the department requires businesses to choose which IT contract plan to utilize and how to work with other supply chain participants to enhance quality. However, companies need to consider how to become dynamic and conform to recent or upcoming shifts in the market. As a consequence, organizations would need to integrate the acquisition framework in a complementary manner into their company plan.
At the same time, based on the measures used for monitoring, the business’s key goals in IT acquisition have been to alleviate the cost of IT products and services and enhance contentment with the purchase by the relevant agency staff. Furthermore, by optimizing the size of the department within organizations and avoiding duplication acquisition processes needlessly. Desirably, institutions may reduce IT costs by ensuring a smooth acquisition process. The potential value of initiatives such as strategic sourcing, logistics management, and IT standardization and modernization is continued. It has been characterized in terms of consolidation owing to the possible decreases in expenditure involving reducing redundant processes or purchases.
For educational purposes, the literature analysis and its findings underscored that most corporate procedures would not be able to run without an extensive procurement acquisition model. For projects and procedures to go forward effectively, procurement management ensures that all goods and services are correctly procured from manufacturers to vendors. In this regard, when customized to save money, time, and resources, procurement may be a competitive advantage rather than just a company need. Convincingly, cutting costs by preventing mistakes and inefficiencies and making the most of available resources is another one of the ways procurement management contributes to a corporation’s bottom line. This will lead to establishing profitable manufacturing and supplier contracts, developing novel new procedures, and taking a local company operation internationally are all responsibilities that fall within the purview of procurement management. Ultimately, proactively looking for diverse suppliers, procurement management may indeed play a significant role in leading corporate social responsibility in inclusion and diversity.
Conclusion
The research literature of a sample of IT procurement documents provides a plausible rationale for the most empirical proof that managing the procurement acquisition process for services is a collective task force that needs a collective workforce. This research substantially verifies earlier studies indicating that the procurements acquisition is the primary concern. For example, the use of outdated technology, poor communication, and lack of a proper contractual plan were key issues obstructing the acquisition process of IT. In this way, the research provides substantive remedies to litigate such issues. Importantly, well-established and proper embeddedness traits within organizations may account for these discrepancies.
References
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Gunasekaran, A., Subramanian, N., & Papadopoulos, T. (2017). Information technology for competitive advantage within logistics and supply chains: A review. Transportation Research Part E: Logistics and Transportation Review, 99, 14–33. Web.
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Magano, K. D., & Thomas, A. (2017). Organizational change and the psychological contract at a pharmaceutical company. SA Journal of Human Resource Management, 15(1), 1-10. Web.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. Web.
