Exploration of challenges of adopting electronic procurement system: the case of Kinondoni municipality, Dar es Salaam

This study presents the findings of an Exploration of Challenges of Adopting Electronic Procurement System, a case of Kinondoni Municipality. The main objective of the study was to explore the challenges of adopting electronic procurement system. Specifically, the study aimed at finding out the services provided with the use of computers; finding out whether the computerization of the procurement activities helps in reducing the operating costs and determining the challenges facing ICT application in procurement activities. The study applied a case study design whereby Kinondoni Municipality was the case under the study. Data was gathered through questionnaire, interview, observation and documentation. The study found out that the use of computers in performing the procurement activities improves the service level; the findings also show that the computerized procurement reduces the operating cost such as eliminating the duplication of work. The challenges facing ICT application in procurement activities included inadequate knowledge of staff and inadequate ICT facilities, lack of ICT policy and cost of using computers and few numbers of computers in departments. It was also discovered that computerized procurement system improves the efficiency of the procurement activities such as the use of the Electronic Data Interchange (EDI). The study recommends investment in ICT infrastructure, Capacity building among staff, establishment and institution of organization manuals and going ICT as a hundred percent goal.