Analysis of the role of automation of sourcing and procurement procedures in financial institutions: A case study of Barclays Bank of Uganda Limited

Abstract

This study was conducted to analyze the role of automation of sourcing and procurement procedures in financial institutions specifically in Barclays Bank of Uganda Limited. Its objectives included establishing the level of automation in sourcing and procurement procedures, ascertaining the challenges facing the automation of sourcing and procurement and coming up with strategies for successful automation of the sourcing and procurement procedures. The study used a cross-sectional study design in which questionnaires were administered to 82 employees and interviews were held with 3 members of the top management staff. Both results from the questionnaires and interviews showed a low level of automation in sourcing and procurement procedures within the Bank (Mean = 2.9). The study found unreliable internet connectivity that lowered the security, reliability and availability of data (Mean = 4.4), low budgetary allocations for automation or its maintenance (Mean = 4.1) and limited top management support (Mean = 4.2) as the most significant challenges that faced the automation of sourcing and procurement. The suggested strategies for successful automation of the sourcing and procurement procedures among others included the need for input from the stakeholders during designing (65.4%) and re-designing of the affected business processes (51.9%). The study thus concluded that there was a low level of automation in sourcing and procurement procedures in Barclays Bank of Uganda Limited. It also concluded that unreliable internet connectivity and lack of top management staff were the challenges that were facing automation in sourcing and procurement procedures. The study also concluded that other than inclusive involvement of stakeholders for their input, support from top management needed to be sought for successful automation of the sourcing and procurement procedures. It was therefore, recommended that management at different levels in the departments support efforts towards the automation of sourcing and procurement procedures and that the procurement staff should increase the utilization of internet based applications during sourcing and monitoring of the procured work against the agreed deliverables and times lines.