Publisher's Synopsis
E-procurement is the emerging worldwide standard for companies in most sectors, namely the public sector, as the most efficient way to procure materials and services. Yet, there are companies that continue to utilize traditional procurement procedures. The current procurement procedures of the Iraqi oil sector include significant amounts of paperwork and bureaucratic methods, causing problems such as lack of control, the inability to meet deadlines, lack of transparency, and increased corruption. North Oil Company (NOC) is a public Iraqi oil company that currently utilizes traditional methods of procurement, and as a result, NOC has suffered from long tendering processes at a high financial cost to the company. Implementing an e-procurement system will help NOC to save costs and reduce cycle time, improve the efficiency of procurement processes, and easily track spending trends. Using e-procurement also eliminates paperwork and allows procurement professionals to focus on more strategic aspects of their jobs. The goal of this book is to gather procurement data from NOC and another comparable oil company in Iraq and thoroughly analyze, compare, and evaluate the data. My hypothesis states that the implementation of e-procurement systems for oil companies in Iraq would result in time reduction compared to the currently used traditional procurement procedures. Therefore, NOC should adopt e-procurement methods to remedy slow cycle times, high financial losses, and increased corruption. By analyzing primary data from NOC and Company A and comparing that data to secondary data from case studies, it is evident that the amount of time that it takes for each sub-process to be accomplished using the traditional procurement methods is significantly longer for NOC. Although instituting e-procurement methods is clearly beneficial to the company, it is not an easy process. Based on the data findings, the current NOC structure, and the Iraqi procurement regulations, the suggested strategy requires that NOC's key leaders work together to review the firm's existing plans, strategies, and initiatives, operating environment and current capability, as well as consider the big picture by identifying the advantages of e-procurement for the organization as a whole. Also, NOC must develop a solid business case with quantifiable and measurable objectives. Furthermore, NOC must set the appropriate strategy, including project plans, goals, and performance measures, selection of the best system, and implementation and assessment of the selected e-procurement system.
