SWITCHING FROM MANUAL PROCUREMENT TO E-PROCUREMENT AT
PERMODALAN NASIONAL BERHAD
MOHD SHAHREEL BIN SHARUN 2007137473
BACHELOR OF BUSINESS ADMINISTRATION (HONS) INTERNATIONAL BUSINESS
FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA
MELAKA CITY CAMPUS
3
BACHELOR OF BUSINESS ADMINISTRATION
(HONS) INTERNATIONAL BUSINESS FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA MELAKA CITY CAMPUS
“DECLARATION OF ORIGINAL WORK”
I, MOHD SHAHREEL BIN SHARUN,
Hereby, declare that;
•
This work has not previously been accepted in substance for any degree, locally or overseas and is not being concurrently submitted for this degree or any other degrees.
•
This project paper is the result of my independent work and investigation except otherwise stated.
•
All verbatim extracts have been distinguished by quotation marks and sources of my information have been specifically acknowledged.
Signature: Date:
LETTER OF SUBMISSION
3rd November 2009
The Head of Program
Bachelor of Business Administration (Hons) International Business Faculty of Business Management Universiti Teknology Mara No.110, Off Jalan Hang Tuah 75200 Melaka
Dear Madam,
SUBMISSION OF FINAL REPORT
Attached is the final report titled “SWITCHING FROM MANUAL PROCUREMENT TO E-PROCUREMENT” to fulfill the requirement as needed by Faculty of Business Management Universiti Teknologi MARA.
Thank You.
Your Sincerely,
MOHD SHAHREEL BIN SHARUN 2007137473
Bachelor of Business Administration (HONS) International Business
ABSTRACT
Supply Chain Management consists of firm collaborating to leverage strategic positioning and to improve operating efficiency. Due to this, firm need to improve their supply chain in many aspects. One of the ways to improve their supply chain is through effective procurement activities. Procurement activities have been evolved into a new era of Internet Technology that uses Internet or World Wide Web as a medium to obtain goods and services from a supplier. The researcher believes that enormous cost savings and efficiencies can be achieved through the utilization of e- procurement, a component of the B2B model. Permodalan Nasional Berhad also is trying to develop e-procurement in their procurement activities and switch from manual procurement to e-procurement. This research analyzes some challenges that will faced by the organization. Therefore, there are few suggestions by the researcher in order to increase the effectiveness of the e-procurement.
TABLE OF CONTENTS
AbstractPAGE
i ConfidentiallyDeclaration of Original Work Letter of Submission
Letter of Transmittal Acknowledgement List of Figures
ii iii iv v vi vii
CHAPTER 1: INTRODUCTION
1.1 Background of Permodalan Nasional Berhad (PNB) 1
1.1.1 Mission 2
1.1.2 Vision 2
1.1.3 Core Value 2
1.1.4 Unit Trust Products 3
1.1.5 Objectives of Procurement Department 4
1.1.6 Functions of Procurement Department 5
CHAPTER 2: ISSUE / PROBLEM IDENTIFICATION
2.1 Research Problem 6
2.2 Research Questions 7
2.3 Research Objectives 7
2.4 Scope of Study 7
2.5 The Significant of The Study 8
2.6 Limitation of Study 9
2.7 Methodology 10
2.8 Definition of Term 11
CHAPTER 3: LITERATURE REVIEW
3.1 Defining Procurement 12
3.2 Procurement Process 13
3.3 Electronic Procurement 16
CHAPTER 4: FINDINGS AND GAP IDENTIFICATION
4.1 Procurement Process at Permodalan Nasional Bhd 22 4.2 Advantages and Disadvantages of Manual Procurement 25
4.2 e-Procurement Process 26
4.3 Advantages of e-procurement 30
