Abstract:

The “study investigated the challenges linked to the implementation of electronic (e)-procurement system at Mahle Behr in Durban, South Africa. Mahle Behr is a big private company that supplies automotive products and services. The study was conducted against the understanding that e-procurement management is one of the critical aspects in the private sector. The aim of the study was to explore factors that hinder the successful applicability of e-procurement system at Mahle Behr in spite of being critical in business in a company. The study employed a case study research design and quantitative research methodology. Sixty (60) employees were used for the study. Respondents were drawn from three departments; Business unit, Division & Profit Centres. A census sampling method was used to select 60 employees for the study. Both primary and secondary data was collected for the study using questionnaires and document collection respectively. In total 60 questionnaires were used to collect data analysed using a Statistical Package for the Social Sciences (SPSS) Version 21. Conclusions are that cost, legal infrastructure, security and supplier enablement, are key impediments to the implementation of e-procurement system at Mahle Behr in Durban. Recommendations are that in as much as resources are always limiting, Mahle Behr should consider e-procurement as a critical investment and set aside adequate financial resources in its budgeting process. In addition, only the initial investment in e-procurement of the needed hardware, software and training of require personnel is resource intensive while the subsequent maintenance and operation cost are substantially low in comparison to the streams of benefits that can be realised from such investments.

Keywords:

E-Procurement System, e-Procurement Management, Investment, Operation Cost, Automotive Products and Services, Training.