The impact of Procurement Management Software in the Oil and Gas industries in Nigeria

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Title: The impact of Procurement Management Software in the Oil and Gas industries in Nigeria
Subject: Management
Type of Paper: Dissertation Proposal
Words: 2022
1.1 Introduction
Procurement software is a program based on computers that permits an organization to automate
the processes of buying materials and maintaining goods’ inventory. The software program of
procurement can generate purchase orders, implement the process of ordering online, match
invoices to materials received, and pay all bills by electronic means.
However, in accordance with Gebauer and Segev (2000), direct procurement is most commonly
performed activities in business. The procurement activity covers the process of producing
completed goods from raw materials. More than 30 percent of income, is spent by several
organizations to purchase goods and services. According to Nam (1998), about 20 percent of an
organization’s purchase makes 80% of the purchases’ total value.
New oil & gas reserves are becoming more unmanageable and costly to fix. Exploration and
production enterprises are increasingly cross-cultural, complex and speculative. Commodity
prices and availability are volatile. Margins can be very high at times; they can be razor thin to
nonexistent in others.
E-procurement receives its reputation through trends of people about employing the internet. Eprocurements’ transparency factor is anticipated to minimize corruption in projects, as an
endeavor to attain good corporate governance.
1.2 Research Aim
The basic aim of this study will assess and discuss the overall impact of Procurement
management software in the Nigerian oil and gas industries.
1.3 Research Questions
The principal questions of this study are:
 What is the importance of the use of Internet-based technologies, comprising eprocurement in the incorporation of supply chains?
 What strategies of procurement are cited to play a vital role into business success in
Nigerian oil and gas industry?
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 Which type of e-procurement software is more extensively employed in oil and gas
industries?
1.4 Research Objectives
The main research objective of this study will assess the importance of the use of Internet-based
technologies, comprising e-procurement in the incorporation of supply chains. In doing so, the
researcher of this study will identify the strategies of procurement that are cited to play a vital
role into business success in Nigerian oil and gas industry. The study will examine and address
the types of e-procurement software that are more extensively employed in oil and gas industries.
The rapport between the Nigerian oil and gas industry and the use of integrative e-procurement
software applications will also be discussed.
2. REVIEW OF LITERATURE
During the last few decades, procurement has appeared and developed from a strategic activity
focused principally on placing purchase orders to a more-strategic process in aid of the business.
The overall function of procurement now operates successfully with users to comprehend basic
needs and requirements, pick suppliers, and control the base of supply to meet needs.
Most of the companies in the Fortune 500 have enforced, to changing degrees, programs of
strategic sourcing that have focused, tangible cost savings, most often evaluated in purchase
price (regardless of a recognition that this is an inadequate alternative for total cost). However,
the industry of oil and gas in Nigeria is no exception, as many players have completed or are in
the implementing process about strategic sourcing programs matched to their models of business
models.
2.1 E-Procurement
E-procurement is a form of e-commerce, particularly designed to help the process of
procurement. According to the Boer, Harink and Heijboer (2002), e-procurement intends to
automate and make simpler the procurement process and enhance efficiency and simplicity as to
minimize the costs of operating. Moreover, e-procurement can alter and ameliorate avenues such
as internal and external interactions, business transactions, and also supply chain management.
Usually, these systems comprise a web catalogue, payment, ordering and order tracking
subsystem.
E-procurement is specified in a variety of ways. In accordance with Tatsis et al. (2006), eprocurement is the incorporation, management, automation and the empowerment of the 
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procurement process. It is employing tools and electronic technology, and web-based
applications.
The opinion of Alanizand Roberts (1999) is that e-procurement is an internet-based solution that
serves the company’s purchase. Generally, procurement is assorted into direct and i