The effect of e-procurement systems on internal customer service in statutory bodies a case study Uganda revenue authority

Abstract

The study was to examine the effect of e-procurement system on internal customer service in Uganda Revenue Authority. The study was guided by three main objectives that is; to establish the rationale for introducing e-procurement system in URA, to examine the effect of implementation of the e-procurement system on internal customer service in Uganda Revenue Authority and to examine strategies of improving internal customer service using e-procurement system in Uganda Revenue Authority. The study adopted a cross sectional study design because data was collected at one single point in time. The design assisted the researcher to examine in details the influence of e-procurement on internal customer service. A sample size of 66 respondents was selected for the study and questionnaire and interview were used to collect the findings of the study. The findings of the study indicated e-procurement in URA was introduced purposely to improve procurement efficiency, save costs, reduce lead times, mitigate delays, reduce mistakes and errors, reduce inventory levels, reduce high customer complaints and that it is faster, cheaper, allows the purchasing function to focus on more value adding activities, promotes compliance and accuracy. That, there are some success stories registered such as increased efficiency accuracy in purchasing information, cost saving by 56% and better decision making. However, it was discovered that there challenges encountered such as lack of high-speed connections, computer illiteracy, problems in capturing of e-signatures, regulatory barriers, transaction risks which adversely affect customer utilization of the e-procurement. It is recommended that URA should develop a user friendly e-procurement system, train its staff, and make capturing of e signatures easier and that the government need to enable and facilitate electronic transactions. Conclusively, a well-managed e-procurement system leads to efficient internal customer service.