Information Infrastructure

The technological infrastructure plays an important base for modern communication in procurement. The literature reviewed so far showed that lack of ICT propagates non- compliance. The factor (F10) below substantiates this argument.

4.3.4.1 Information Technology (F10)

The study revealed that in spite of its importance in enhancement of compliance, IT is yet to be adopted. The study observed that IT infrastructure development is ignored. However, most literature has showed that IT increases compliance. IT reduces purchase order cycle, improves relationships with suppliers, reduces costs associated with procurement processes and improves procurement data management (Saunders, 1997; Burt & Dobler 1996; Chari, 2006, Lamming & Cox 1997 & Whiteley, 2000). Besides, IT support bid evaluation and selection through e- procurement domains (Azekiwe, 2014). The table below presents the substantiating codes for IT factor.

135 Table 4.18. IT substantiating codes

Substantiating codes

“I don’t clearly see ourselves going towards IT. Manual procurement is legal not IT. That is one of the weaknesses of the PPA, as it did not forecast use of IT. (LCC 10.1)

“That is one of the weaknesses in the current law which needs repealing if we are to benefit from IT as the rest of the developed world do.’’ (LCC. 10.2)

“When you look at the PPA, you can see that the law does not provide for IT use in purchases.’’ (BCC. 10.0)

“However, IT use include cell phones, computers, fax machines etc.’’ (BCC. 10,1.)

“I have experience when buying personal things using the internet. Each time I use the net I skip one requirement, the process has to restart all over and that is boring.’’ (BCC. 10.2) “Since IT demands total compliance and non-skipping, it can also promote total compliance through analytics and monitoring of procurement stakeholders activities.’’ (BCC. 10.3) “Even though PPA omitted IT, other factors inhibit its use. For example, lack of computers, skills and expertise can all work against its inclusion in PUs.’’ (BCC. 10.4)

“Poor electricity, high tariffs and erratic network can also stifle use of IT in procurement.’’ (BCCA. 10.5)

“This way, IT is a non-starter even though it has some great advantages as proved elsewhere around the globe.’’ (BCCA 10.6)

Properties

1. Establishment of IT infrastructure is an essential factor for enhancement of strategic

procurement. It helps establish electronic markets, which use IT to present a range of offerings on the market and allow purchasers have a wider choice

2. In addition, e-data interchange is the commonly standardised system used for coding

business transactions so that they can be communicated easily to others.

3. This can dramatically improve buyer/supplier relationship due to increased trust.

4. The internet commence can also be used to advertise for tenders and one-off purchases.

The internet can also help in the reduction of costs associated with dead hours and transportation.

5. Computers can help sort out bureaucracy and speed delivery

6. E-procurement systems have in the recent years demonstrated their benefits in terms of

136

7. . Besides, potential suppliers are provided with standardised and real time information that

reduces the need for informal contacts between public procurement officials and suppliers.

Figure 4.4 below represents the mainstream of IT on how it enhances procurement.

Figure 4.4: Mainstreaming of ICT Specific procurement strategy

1. The purchase order must not have been placed previously without proper procedures and

diligence by the purchasing department. Since the purchasing department is the only

authorised buyer, any purchases made outside them are considered Maverick.

2. Maverick buying was observed to be rampant on all procurements for CDF and LDF

projects. There was a lot of abuse in processes and procurement methods by the unauthorised committees and individuals including MPs.

3. Buying through other channels is also considered maverick and illegal.

4. There are a number of important considerations for this. First, spending outside of the

recognised purchasing channels that cannot benefit from discounts given on larger volumes; volumes of some purchases do not qualify for discounts since they are often purchased from non-contractual sources. Secondly, maverick purchases do not benefit from professional buyers diligence, and can lead to losses on the firm. Thirdly, they do not appear in the budget lines and fail to guide future expense allocations. Finally, they

are not likely to be placed with the most qualified supplier because the maverick have

few resources to perform the standard practices hence lacks competitive analysis.

5. The procurement function should address the IT element as a core factor. The

137 A Framework for using IT infrastructure

Figure 4.5: Benefits of using IT Source: Vedanthachari (2006)

The figure above projects the major benefits of IT on public procurement. The major benefits of using IT include enhanced compliance, lowering costs, reducing bureaucracy and enhancing value addition. The major savings here is achieved by reducing the size, complexity and paperwork, purchasing bureaucracy, and consequences of pressuring suppliers to cut prices in a more adversarial way. IT also increase competition, increases transparency, reduces administrative costs, improves local government efficiency and in the process increase compliance.