Assessing The Efficiency of Procurement-To-Pay Systems In Zambia's Nonprofit Organizations: A Case Study of Catholic Relief Services Zambia (CRS)
DOI:
https://doi.org/10.59413/ajocs/v6.i.1.12Keywords:
Procure-to-Pay, Operational efficiency, Nonprofit organizations, Business Process Improvement (BPI), Technology Acceptance Model (TAM), ProcurementAbstract
This study evaluates the efficiency of Procure-to-Pay (P2P) systems in nonprofit organizations, focusing on Catholic Relief Services Zambia (CRS). The study integrates Business Process Improvement (BPI) theory and the Technology Acceptance Model (TAM) to analyze how process optimization and technology adoption enhance procurement efficiency. Using a quantitative research design, data were collected from 100 staff members through questionnaires, document analysis, and performance metrics. Key performance indicators (KPIs) such as procurement cycle times and cost reductions were analyzed using statistical methods, including Pearson correlation analysis. The findings revealed significant improvements in operational efficiency and cost reduction following the implementation of the P2P system. The requisition-to-purchase order processing time decreased by 80%, while the requisition-to-payment cycle was reduced by 22%. Correlation analysis showed a strong positive relationship between P2P system implementation and operational efficiency (r = 0.955, p < 0.01). Challenges were noted during implementation, including technical issues and data migration difficulties. Post-implementation challenges such as system integration and supplier performance tracking persisted. Strategies including regular training, system upgrades, and process re-engineering were implemented, with 46.5% of respondents reporting significant improvements in system performance. While focused on CRS Zambia, the findings provide actionable insights for similar organizations aiming to modernize their procurement processes. Limitations include the focus on a single organization, reliance on quantitative methods, and a short-term assessment. Future research should explore longitudinal studies, qualitative insights, and broader organizational contexts to assess the long-term sustainability of P2P systems in nonprofit sector. The study underscores the transformative potential of P2P systems in improving procurement efficiency and donor accountability.
Downloads
References
Abdulkadir, H. S., 2014. Challenges of implementing internal control systems in NonGovernmental Organizations (NGO) in Kenya: A case of FaithBased Organizations (FBO) in Coast Region. IOSR Journal of Business and Management, 16(3), pp. 57-62.
Araujo, L., Dubois, A. & Gadde, L. E., 2017. Managing Interfaces with Suppliers. Industrial Marketing Management, 28(5), pp. 497-506.
Boateng, D., Kelleher, D. & Boateng, P., 2016. Procurement Challenges in the Nonprofit Sector: A Study of Selected Non-Governmental Organizations.. Supply Chain Management: An International Journal, 21(1), pp. 36-52.
Brown, L. & Patel, S., 2020. Key Metrics for Measuring the Success of P2P Systems in Nonprofit. Nonprofit Technology Review.
Chartered Institute of Procurement & Supply (CIPS), 2020. Future of procurement. [Online] Available at: https://www.cips.org/-/media/cips-new/pdfs/reports/the-future-of-procurement-report-2020.pdf [Accessed October 2023].
Clark, M. &. W. T. (., 2020. Optimizing Procurement in Nonprofits through P2P Metrics. Journal of Procurement and Supply Chain, 8(2), pp. 34-48.
Croom, S. & Brandon-Jones, A., 2017. Impact of E-Procurement: Experiences from Implementation in the UK Public Sector. Journal of Purchasing and Supply Management, 13(4), pp. 294-303.
Davenport, T. & Short, J., 1990. The new industrial engineering: Information technology and business process redesign. Sloan Management Review, 34(4), pp. 11-27.
Davis, F. D., 1989. Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), pp. 319-340.
Deloitte, 2021. Driving Procurement Efficiency: How Automation Transforms P2P Systems., s.l.: Deloitte.
Doe, J. & Roe, R., 2018. The Impact of Procure-to-Pay Systems on Nonprofit Organizations: A Literature Review. International Journal of Public Sector Management, 21(1), pp. 23-37.
Financial Executive Institute, 2017. Implementing a Procure-to-Pay System at a Nonprofit Organization, s.l.: Financial Executive Institute.
Green, P. & White, S., 2021. Overcoming Challenges in P2P Implementation for Nonprofits. Nonprofit Management & Leadership31(2), 111-125., 31(2), pp. 111-125.
Green, P. & White, S., 2022. Performance Metrics in P2P Systems for Nonprofit Procurement. Journal of Nonprofit Technology and Operations, 7(1), pp. 45-60.
Harmon, P., 2014. Business Process Change: A Business Process Management Guide for Managers and Process Professionals. 3rd ed. s.l.:Morgan Kaufmann.
Heeks, R., 2006. Health information systems: Failure, success and improvisation. International Journal of Medical Informatics, 2(75), pp. 125-137.
Higgins, D. & Dawson, J., 2021. System Integration in Nonprofit Procurement: Challenges and Solutions. Public Sector IT Journal, 10(3), pp. 45-59.
Institute, N. M., 2019. Measuring Procurement Efficiency in Nonprofits using P2P Systems, s.l.: Nonprofit Management Institute.
Johnson, E. & Brown, R., 2021. Metrics for Evaluating Efficiency in P2P Systems for Nonprofits: A Literature Review. Public Sector Procurement Journal, , 15(4), pp. 102-118.
Karjalainen, K., Kemppainen, K. & van Raaij, E., 2009. Non-compliant work behaviour in purchasing: An exploration of reasons behind maverick buying. Journal of Business Ethics, 85(2), pp. 245-261.
Kidd, P. T., 2005. Kidd, P. T. (2005). Agile manufacturing: Forging new frontiers. Addison-Wesley Longman.. s.l.:Addison-Wesley Longman.
Kotter, J. & Schlesinger, L., 2008. Choosing strategies for change. Harvard Business Review, 7(6), pp. 130-139.
KPMG, 2020. Procurement in the Digital Age: The Role of AI in P2P Systems, s.l.: KPMG.
Lee, H. L., Padmanabhan, V. & Whang, S., 2015. Information Distortion in a Supply Chain: The Bullwhip Effect. Management Science, 50(12), pp. 1875-1886.
Leenders, M., Johnson, P., Flynn, A. & Fearon, H., 2006. Purchasing and Supply Management.. 13 ed. New York: McGraw-Hill..
Leenders, M. J. P. F. A. &. F. H., 2015. Purchasing and Supply Chain Management. 6 ed. Boston: Cengage Learning..
Markus, M., 2004. Technochange management: Using IT to drive organizational change. Journal of Information Technology, 1(19), pp. 4-20.
McKinsey & Company, 2024. McKinsey & Company. [Online] Available at: https://www.mckinsey.com/capabilities/operations/our-insights/revolutionizing-procurement-leveraging-data-and-ai-for-strategic-advantage [Accessed 8 November 2024].
Moe, C. & Newman, M., 2004. The public procurement of information systems: dialectics in requirements specification. European Journal of Information Systems, 4(13), pp. 283-295.
Monczka, R., Handfield, R., Giunipero, L. & Patterson, J., 2015. Purchasing and Supply Chain Management. 6 ed. Boston: Cengage Learning..
Nethercot, E., 2023. Paper-Based Procurement Systems in Nonprofits: Barriers to Efficiency.. Procurement & Operations Management Review, 12(2), pp. 77-93.
Patel, S., 2020. Key Metrics for Measuring the Success of P2P Systems in Nonprofits. Nonprofit Technology Review.
Rajasekaran, B. & Rajasekaran, J., 2014. Reducing procurement processing costs in US organizations. International Journal of Business and Social Research, 4(4), pp. 21-28.
Yamane, T. (1967) Statistics: An Introductory Analysis. 2nd Edition, Harper and Row, New York..
Seddon, P., Calvert, C. & Yang, S., 2010. A multi-project model of key factors affecting organizational benefits from enterprise systems. MIS Quarterly, 2(34), pp. 305-328.
Smith, A. & Jones, B., 2018. Improving Financial Management with P2P Systems in Nonprofits. Journal of Nonprofit Management, 12(3), pp. 45-59.
Sodhi, M. S. & Tang, C. S., 2019. The definitive guide to supply chain best practices: Comprehensive lessons and cases in effective SCM.. 1st ed. s.l.:Pearson Education.
Vaidya, K., Sajeev, A. S. M. & Callender, G., 2006. Critical factors that influence e-procurement implementation success in the public sector.. Journal of Public Procurement, 6(1), pp. 70-99.
Van der Valk, W. & Rozemeijer, F., 2009. Buying business services: Towards a structured service purchasing process. Journal of Services Marketing, 23(1), pp. 3-10.
Venkatesh, V. & Davis, F. D., 2000. A Theoretical Extension of the Technology Acceptance Model:. Four Longitudinal Field Studies. Management Science, 46(2), pp. 186-204.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Dumiso Siwawa, Dr. Mukelabai Mukelabai (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
