E Procurement

Topics: Supply chain management, Supply chain, Internet Pages: 22 (6441 words) Published: June 10, 2013
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MZUMBE UNIVERSITY

SCHOOL OF BUSINESS

DEPARTMENT OF PROCUREMENT & LOGISTICS MANAGEMENT

TERM PAPER

SUBJECT NAME: E-PROCUREMENT AND SUPPLY CHAIN MANAGEMENT

SUBJECT CODE: LOG 5652

PROGRAMME: MSc (PSCM)

NAME: JUMA, JUMA R

REG NO: MSc/PSCM/MZC/004/T.12

STUDT TITLE: Critically asses the application of e-supply chain management in Tanzania

Abstract

Electronic business is the process which uses Internet technology to simplify certain company processes, improve productivity and increase efficiency. It allows companies to easily communicate with their suppliers, buyers and customers, to integrate ‘‘back-office’’ systems with those used for transactions, to accurately transmit information and to carry out data analysis in order to increase their competitiveness. The aim of this work is to define the application of e-SCM in Tanzania environment. Particular attention is given to procurement and fulfilment in order to compare the companies studied and measure their efficiency. Fulfilment means controlling and managing transactions, warehouses, transportations and reverse logistics. This analysis is followed by case studies of two large Italian companies in the field of motorcycles. The market strategy they use and the role of Information and Communication Technologies (ICT) in their procurement and distribution processes is analyzed. This comparison provides useful information regarding the way in which Internet can be used by two companies which operate in the same market.

Keywords: Supply Chain, Supply chain management, E-logistics, Electronic Supply Chain,

E-commerce.

1.0. INTRODUCTION

Information and Communications Technologies (ICT) advances since the end of the 20th Century have led to multiple convergences of content, computing, telecommunications and broadcasting. They have brought about changes in other areas, particularly in knowledge management and human resources development. Increasing capacity of ICT has further been empowered by the growth of a global network of computer networks known as the Internet. It has impacted the way business is conducted, facilitated learning and knowledge sharing, generated global information flows, empowered citizens and communities in ways that have redefined governance, and have created significant wealth and economic growth resulting in a global information society. In case of Food industry is one of the largest branches of industries in Tanzania which is made up of micro, small, medium and large processors. Micro and small food processors operate in an informal sector and use labour intensive and poor technologies, while medium and large scale industries use improved and modern technologies with large capacity output. Small and medium industries are the majority of local manufacturers of consumer goods. The largest production sectors of food industry are brewing, milling, baking, confectionery, animal and vegetable oils, sugar, dairy products, fruits and vegetables, soft drinks, fish and meat processing, ethyl alcohol distillation, sprit blending, wines, bottling of natural spring and mineral waters, among others. The gap between those able, and those unable, to participate in the knowledge economy is currently termed as the “digital divide.” This digital divide is evident within nations, and between the developing and the developed world. The current Tanzania ICT situation requires urgent steps to enable Tanzanians to participate meaningfully in the knowledge economy, recognising that Tanzania has low levels of human capital development, local content creation, ICT infrastructure and access, which together lead to high costs of participation.

Tanzania achieved notable progress in deploying ICT notwithstanding the 1974 Prohibition Order on Electronic Computers and Television Sets. The achievements were a result of various adjustments since the early nineties in policy, regulatory and commercial facets, both...

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