The effects of e-sourcing on cost reduction in a manufacturing firm:
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Date
2019-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study aimed at determining the impact of c—sourcing on cost reduction. It further looked at various specific objectives which include; benefits of implementing c—sourcing and current procurement practices. To determine the various c—sourcing tools used by manufacturing firms.
And to examine the various costs incurred by manufacturing firms. And to find the relationships between e—sourcing and cost reduction. The study also investigated the challenges of implementing c—sourcing within Century Bottling Company Ltd. It was noted that with ever increasing competitive pressures, growing number of firms use electronic sourcing in an attempt to reduce costs and increase profitability. Academics and practitioners alike agree that one of the most benefits of c—sourcing is its ability to reduce costs within a business firm.
A cross sectional and descriptive research design was employed. Questionnaires and interviews were the methods used to collect data on a sample size of 52.
The results of the study revealed that c—sourcing plays a bigger role in reducing costs within
Century Bottling Company Ltd although there are other elements which include proper management of the procurement process, better contract management, better acquisition analysis which also play big role in cost reduction.
The management of Century Bottling Company Ltd should acquire more c—sourcing tools and software if they are to fully benefit from the use of c—souring tools. This will help the firm to improve on profit margin as they reduce on the procurement costs. The Management of Century
Bottling Company Ltd should also continue recruiting skilled employees to use the c—sourcing tools to fully benefit the organization, The management should acquire funds from financial institutions so as to supplement its capital base to acquire the required tools and resources to enable the firm to grow and achieve the best~ ~foi~ the organization. The management should introduce motivation incentives for example bonuses for employees who perform well and also increase salaries for the workers so as they can perform better. This developed a heart of
Commitment hence efficiency cut work done.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment for the Requirement of the Award of a Bachelor’s Degree in Supplies and Procurement of Kampala International University
Keywords
e-sourcing, Cost reduction, Manufacturing firm a, Century Bottling Company Ltd