Literature review of the relationship between E-procurement and cost reduction: 3rd International Conference on Advancing Knowledge from Multidisciplinary Perspectives in Engineering & Technology - ICAKMPET.

Abstract

The purpose of this desktop study was to examine the efficacy of e-government technologiesandthe obstacles to their efficient use. The researchers assessed how well e-government affected service delivery, how it might result in cost savings andthe advantages anddifficulties of adopting andusing it. The study also looked at the advantages of using e-government to investigate this. E-efficiency in providing services was demonstrated by greater citizen involvement andinteraction with the local government, increased opennessandaccountability, andcost savings. The study revealed that the use of e-government improves traditional methods of conducting business andproviding services while also enabling access to information andservices online, reducing the need for rework, increasing transparency andaccountability, andencouraging citizen participation. The ineffective use of e-government in local authorities was hampered by a lack of funding, inadequate enabling infrastructure, low ICT literacy levels, andthe digital divide, among other factors. It was evidenced in this study, that e-procurement leads to cost savings, thus it affects cost reduction strategies positively. Thus, e-procurement reduces inventory costs.