Performance evaluation of procurement system in ICT Industry a case study

Abstract

In integrated Supply Chain Management Procurement is one of the most important stages and has been the subject of extensive research in the recent literature. If procurement process runs smoothly then other process of Supply Chain will run smoothly. To monitor procurement process of a company, it is necessary to measure performance of it. And if it is observed performance time to time, then whole supply chain will be efficient and responsive as well. There are some key performance indicator (KPI) for measuring performance of procurement. In this paper, discussed performance evaluation of procurement in a typical ICT based company using some KPI, which can be beneficial to monitor and improve procurement performance. A structural framework consists of three phases was designed to cover the study of ICT sector in Bangladesh, Sorting, selecting & ranked the KPI & finally evaluating the procurement performance against the KPI for a case study. The first phase was the study of ICT sector of Bangladesh through literature review. The second phase was an exploratory survey to select the KPI and the other phases were case study. In the second phase KPI selected through the implementation of Analytical Hierarchy Process of a case and the last phase offered a guideline to evaluate the procurement performance through a case study. The designed framework consists of seven selected KPI (Key Performance Indicator) which came out after surveying among different companies engaged with the ICT business, with which we may able to measure procurement performance of a ICT company. Moreover after the evaluation of the performance of procurement against the important KPI, it may be ranked and analysed them by Design of Experiments (DOE). As the key factors for KPI selection were geographically limited to one company and one country, implementing these to other geographical areas and industries may not be possible. But with a cross-validation of the framework would widen its applicability to other areas. The paper provides a framework that allows other researchers to manage upstream of any supply chains.