Procurement Strategies and Their Effect on Service Delivery in Banks

Introduction

Through the fast-paced technological enhancement, there is no doubt that the ordinary lives of the people are finally changed. The organizations are looking forward to adopt the technology that can help them provide the additional income. Usually, businesses rely in the combination of the human skills and technological efficiency to satisfy the demand of the customers. In the growing industry of banking, this concept is also implemented became the major part of their strategy to deliver the right of service.

Background of the Study and Problem Statement

Electronic procurement is also known as the e-procurement is an innovative way of using the Internet to make it easier, faster, convenient, and less expensive for the businesses to purchase the goods and services. The electronic procurement covers a wide arrangement and assortment of the techniques that the businesses may apply in their process with more management in terms of earning the revenue and serving the customers (Epiq Technologies, Inc.). In the application of the procurement in the process of the banks, they recognized the different impacts in which the study will present.

Research Objectives

The study recognized the objectives firstly in recognizing the impact of technology in the bank transactions and secondly in the application of the procurement strategies in delivering the services of the banks.

Research Questions

There are several questions that the study recognized in the issue of technology in the face of banking industry.

1. What are the banking transactions that have a great need in technology?

2. What are the observed changes by the workers in the implementation of the system?

3. What are the view of the leaders and customers in the implementation of the system?

Conceptual Framework

The concept of the application of the technology on banks is based on the need for efficiency. Banks and other financial institutions as well as the other businesses believed that if they deliver the efficiency in their customers, there will be a strong customer relationship. In the natural setting, banks are indeed had the critical nature of work but it is not an exception to deliver a quality and fast services.

Literature Review

Because of the challenges presented in the banking systems such as the need for control, the aid of the procurement systems helps establish the banks objectives to improve their transactions within the banking system and the management system. In return, all of the processes are standardized in the overall control on the financial system (SAP, 2006). The enhanced transparency and competition in the global market makes a great mean in the adaptation of the process. Large transactions are transmitted and received with ease and efficiency (Nevens, 1999). In addition, the degree of the competition is already becoming apparent in the emerging economies therefore, the need for a development in terms of technological became an important framework of the economies. Despite from the obvious benefits of the procurement which is usually applied in the connection of the computers and Internet, the firms in developing countries enjoyed the productivity gains and expansion in the demand with the electronic commerce. Meanwhile, the consumers or the people can be also benefitted because of the increase competition and market transparency. But it was identified that there is great benefit to the firms depending on the sector, degree of the product differentiation, and the level of technological sophistication (Jim, 2001). The active collaboration on the technological and social support can make the aspect of development possible (Wright, 2008).

Methodology

The variables that can be used are the usual banking transaction in credit loans and saving. The use of the accounts receivable, inventory and asset management, and invoice payment can be the basis of the bank’s procurement effectiveness. The applied methodology is based on the interview of the bank employees and how the different banking transactions integrated the use of the technology as much as the procurement system.

Conclusion

The ability of the banking system to cope with the changes around the world means that the objectives they want are met. The present challenge should treat as opportunity and that can diminish the level of risk. The approach for the development of the banking industry only represents that there is a need of efficiency.

References:

Epiq Technologies, Inc., Articles: eProcurement/Electronic Procurement Advanced Supply Management. [Online] Available at: http://www.epiqtech.com/Electronic-Procurement.htm. [Accessed 11 Feb 2010].

Jim, T., 2001. Global Economic Prospects: Electronic Commerce and Developing Countries. [Online] Available at: http://siteresources.worldbank.org/GEP2001INT/Resources/GEP2001_Chapt4.pdf. [Accessed 11Feb 2010].

Nevens, T., 1999. The Mouse That Roared: On-Line Retail Sales Might Be Modest, but Don’t Underestimate the Broader Impact of the Internet. The McKinsey Quarterly, No. 1.

SAP, 2006. Standard Bank, SHRM Helps Global South African Banking Group Automate and Centralize Purchasing. [Online] Available at: http://www.sap.com/germany/media/50082232.pdf. [Accessed 11 Feb 2010].

Wright, P., (CITRIS) 2008. Information Technology for Emerging Economies, Center for Information Technology Research in Interest of the Society. [Online] Available at: http://www.citris-uc.org/files/tee.pdf. [Accessed 11Feb 2010].