Streamlining Solution for Procurement Management through

Automation

Cristelita P. Lombres

Department of Information Technology of Aurora State College of Technology, Philippines

Keywords: Automation, Information System, Inventory, Procurement

Abstract: The study on Streamlining Solution for Procurement Management through Automation is developed to

address the need for a reliable and secured information system for monitoring procurement processes and

inventory of supplies and equipment. ASCOT practices the manual process of doing transactions resulting to

problems such as slow processing, lack of inventory, poor monitoring, data inaccuracy, and issues on

transparency. Thus, the objective of this study is to end the cycle of errors and delays in procurement

processes, through the development of Procurement Monitoring System that automates the procurement

transactions.To obtain the necessary data, the researcher conducted interviews to collect information needed

in analysing the process and flow of transactions. The researcher used the developmental method of research

in undertaking the study and used V-Model of the SDLC for the development of the system. To evaluate the

acceptability of the system, the researcher used the questionnaire adapted from ISO 25010 Software Product

Quality Standards. The evaluation shows an overall mean of 3.69 denoting that PMS was found conformed

to the software quality requirements.The system has successfully reduce the time of operation and simplify

complicated tasks in terms of recording supplies and monitoring transactions while the user can track every

transaction movement.

1 INTRODUCTION

Procurement processes in government institutions is

not only taxing, tedious, and prone to errors; but can

also take a lifetime if manually done. It is a common

knowledge shared by people working in the

government. There is no doubt; the manual

procurement activity system of government agencies

needs reform.Procurement is the process of acquiring

of goods, services or works, and the contracting

negotiation for infrastructure projects from a supplier

or contractor, often via tendering of bid process[3].

The process followed in public procurement involves

formulating an annual plan detailing the approved

procurements with specifications for the fiscal year;

after which, the procurement unit proceeds to

purchasing the goods based on the specified schedule.

These activities involve the participation of suppliers,

contractors, requesting parties (requesitioners), end-

users, personnel of the Procurement Management

Unit (PMU), Budget Office, Supply Office and the

Head of the procuring entity. From the preparation,

approval and submission of various documents

needed, the availability of the signatories usually pose

as burden in undertaking the process.

As time and industry demanded the need to

upgrade the processes from manual to automated, the

government has promoted what is now known as e-

government initiatives. Government agencies

directed themselves in implementing IT systems to

deliver better services; hence, cutting the red tape and

reducing the required time in most transactions. This

technological reform aimed to deal with the

longstanding problems that constraint many

government agencies from ensuring proper planning

and budgeting, combating corruption, and

strengthening accountability. The Philippines, in its

effort to have a more efficient, economical,

accountable, and transparent public procurement

system, launched the Philippine Government

Electronic Procurement Services (PhilGEPS) in

accordance to its mandate on the Government

Procurement Reform Act of 2003. PhilGEPS is the

central portal of all public procurement activities that

provides both government agencies and suppliers

with a transparent and competitive environment[1]. In

spite of the reform, government offices were still

Lombres, C.

Streamlining Solution for Procurement Management through Automation.

DOI: 10.5220/0009437100400048

In Proceedings of the 1st International Conference on Psychology (ICPsy 2019), pages 40-48

ISBN: 978-989-758-448-0

experiencing difficulties in the procurement process.

And the Aurora State College of Technology

(ASCOT) was no different in facing such problems.

ASCOT is a fast growing academic institution as

manifested by its numerous development projects.

However, the College is no different from other

agencies that failed to take advantage of technology

as it still practices traditional or manual process of

doing transactions. The practice resulted to common

problems such as slow procurement processing, lack

of inventory, poor monitoring, data inaccuracy and

issues on transparency that further resulted to

misinformation and other related problems. One

problem commonly encountered in the procurement

process was that end-users often request items with

no proper specifications, resulting to delay in the

approval of request for such items. The PMU

personnel therefore would have to re-coordinate and

ask the end users over and over again for

specifications. Another problem encountered was the

cyclical delay in consolidating the Annual

Procurement Plan (APP) and Project Procurement

Management Plan (PPMP) of Academic Departments

and Administrative Units because of the late

submission of departmental APPs and PPMP. On the

other hand, the Supply Office had no precise

inventory system to track the status of issued supplies

and transferred equipment, which often led to data

inaccuracy, loss of records, and human errors.The

foregoing issues and concerns prompted the

researcher to think of a solution to end the cycle of

errors and delays in procurement processes. She

firmly believed that the problem could be addressed

through the development of PMS that would

automate the procurement transactions and processes

by incorporating modules on procurement, inventory

and supply monitoring for a more accurate and faster

transaction. This system would reduce the time of

operation and simplify complicated tasks in terms of

recording supplies and monitoring transactions while

the user can, at the same time, track every transaction

movement done.

2 LITERATURE REVIEW

Different studies and reforms focused on eliminating

the problems usually experienced in the procurement

process were conducted. Most of the studies are on

fostering fair competition, increasing transparency,

standardizing procedures, ensuring proper planning

and budgeting, and combatting corruption. The

following related literature and studies from both

foreign and local researchers present a survey of the

concept, ideas, generalization and conclusion that

bear relevance to the present study.

The research work of Seth Jones, David

(2013) examined the features and impact of recent

reforms introduced by the Philippine government to

deal with the longstanding shortcomings in its

procurement system. The findings [8] showed that the

impact had been less than promised. This was due to

limitations of certain provisions of the reforms and

weaknesses in both implementation and in the

accountability of the procuring entities.Meanwhile, in

a study conducted by S. Kolmykova, T & V.

Semenikhina, E & A. Alpeeva, E. (2018), public

procurement was defined as a category of the modern

economic system with great influence on the

formation of the innovative potential of the country

and the regions. It performs the most important

functions: regulative, reproductive, stimulating,

social and innovative. Thus, [7] the study of the

public procurement system today is a significant and

relevant issue in the field of economic research.

The Philippines, in its effort to have a more

efficient, economical, accountable, and transparent

public procurement system, has launched the Pilot

Electronic Procurement System (EPS) in November

2000[1]. The EPS utilized the accessibility of the

internet as a common portal for registration of

suppliers and advertisements for bid opportunities. In

2003, the Philippines launched the Philippine

Government Electronic Procurement Services

(PhilGEPS) in accordance to its mandate on the

Government Procurement Reform Act of 2003[1].

PhilGEPS features components that includes

Electronic Billboard, used for posting procurement

opportunities, notices, awards and reasons for award

for government procurement, Suppliers’ Registry,

used for the registration of suppliers who wish to do

business and projects with government agencies, and

Electronic Catalogue, the listing of all the goods,

supplies, materials and equipment available. The

2016 Revised Implementing Rules and Regulations

hereinafter called the IRR, was disseminated pursuant

to Section 75 of Republic Act No. (R.A.) 9184,

otherwise known as the “Government Procurement

Reform Act,” for the purpose of recommending the

necessary rules and regulations for the modernization,

standardization, and regulation for the

implementation of procurement activities of the

Government of the Philippines[3]. The guidelines in

the procurement process serves as the basis of every

government institution in conducting their

procurement activities in the country.

The different countries around the world has

also been battling with different procurement

Streamlining Solution for Procurement Management through Automation

difficulties, thus researchers from around the world

have conducted studies in order to address these

problems.The option of implementing e-procurement

systems, web-based procurement management

system has been an option for other countries and

even in some institutions in the Philippines. The

following research outputs presented some of the e-

procurement systems that were developed and

implemented and the impact of these on the

procurement development process.

The findings of the study of Benjamin Nyariki

Onchoke, Daniel M. Wanyoike (2016) revealed that

Internal Inventory Security Procedural Practices,

Inventory Auditing and Computerized Inventory

Control both individually and collectively have

significant positive influence on Procurement

Performance[2]. The work of Moe Carl Erik (2014)

found out that most of the research in procurement

focus on the specific task of requesting, tendering and

vendor selection. He accentuates, that more than

these, there should be a more longitudinal research

that covers the entire process from the requisition up

to the delivery and that research approach must focus

on issues like stakeholders’ involvement and

management [6]. On the other hand, the study of

Konstantinovna Mitropan, Tetyana (2018)

concentrated on a comparative analysis of the types

of public procurement mechanisms based on a set of

features, has shown the superiority of a centralized

type of mechanism that facilitates the introduction of

efficient and flexible procurement methods. The

direction of this process is determined by the need to

implement the principles of validity and innovation,

fair choice of the best bidding, prevention of

corruption and ensuring the high efficiency of the

implementation of public procurement[4]. In

addition, the study conducted by Soojung Oh,

Hongsuk Yang & Soo Wook Kim (2014) gave a

strategic view on providing a new perspective

regarding the suitability between e-procurement

being used by itself and the IT capability necessary

for this. Firms need to find a proper fit between their

own information technology (IT) capabilities and IT

systems in order to enhance performance[9].Also, the

study written by Masudin, Ilyas & S Kamara,

Mohammed & Zulfikarijah, Fien & K Dewi, Shanty

(2018) discussed that procurement and inventory

management serves as an essential strategy for an

organization to deliver a competitive

performance[5].An efficient procurement and

inventory management system will ensure controls

over end-user’s demands thereby resulting to increase

in organizational performance. Adopting for such

developments will improve organizations efficiency

and effectiveness by automating process, and

fostering coordination between the personnel of the

organization.

The foregoing reviewed researches

highlighted the flaws of the manual procurement

processes and strengthen the reason to believe that

automation is a key to correcting the said flaws.

Previous attempts at procurement automation

addressed issues on requesting, tendering, and vendor

selection; but not the issues and concerns affecting

government agencies in terms of transparency and

confidentiality. It is a research gap that the researcher

wished to address; hence this study.

3 RESEARCH METHOD

The researcher used the developmental method of

research to accomplish the desired output. Through

data gathering, the researcher was able to obtain

significant information like forms, procedures and

guidelines vital to the development of the system that

will address the issue on procurement. In developing

the system, the researcher used the V-Model of

System Development Life Cycle. Using the V-shaped

model, all phases of the development cycle has an

associated testing phase. The verification phase

includes the various designs and coding activities

required in the software development process. It

involves requirement analysis, functional

specification, high level design or the architecture

design and the module design. On the other hand,

validation ensures that all that development was

carried out correctly through the following tests: Unit

Testing, to ensure that all bugs or errors in the codes

are removed and tested early on; Integration Testing,

to ensure that the module and architectural designs

are accurate and that all the software's functionalities

have been captured in the design; System Testing, to

evaluate the functionality of the software and

Acceptance Testing, to ensure the acceptability of the

system by the user.

ICPsy 2019 - International Conference on Psychology

Figure 1: Phases of The V-Model of the SLDC

The figure shows the different phases on the V-

Model of SDLC. Under the V-Model, the

corresponding testing phase of the development

phase is planned in parallel style. So, there are

Verification phases on one side of the ‘V’ and

Validation phases on the other side which is linked by

the Coding Phase.

3.1 Local of the Study

This study was conducted and implemented in Aurora

State College of Technology (ASCOT), Aurora,

Philippines. ASCOT is a sole state college in the

province of Aurora which caters most of the students

from the province and nearby towns.

3.2 Respondents

There were 30 research samples used in the study as

respondent evaluators. Half of this 30 were end-users

who were all chosen purposively on the basis of their

practice in and familiarity with the procurement flow

and processes; while the other half were technical

experts, also purposively chosen on basis of their

technical knowhow and knowledge about system

functionality and technicalities.

Purposive sampling was employed since it is a

technique applicable when the number of people to

serve as primary sources of data and evaluators is

limited due to the nature of research design and

objectives of the study.

3.3 Research Instruments

To evaluate the features and functionalities of the

developed system, the proponent utilized two sets of

questionnaire-checklist derived from ISO 25010

Software Product Quality Standards.

The first set was for the IT experts and technical

staff; while the second was for the end – users. The

set for the IT experts and technical staff consists of

items on eight (8) evaluation areas, namely, software

product quality indicators namely functional stability,

performance efficiency, compatibility, usability,

reliability, security, maintainability, and portability;

while the set for the end users consists of items on

three (3) evaluation areas, namely: functional

suitability, performance efficiency, and usability. To

determine the content validity, reliability, and quality

of the instrument, the questionnaires adapted from the

ISO/IEC 25010 Software Product Quality Standard

were subjected to the review and evaluation of a

statistician whose suggestions and comments were

noted and incorporated to strengthen instrument

validity.

3.4 Data Gathering Procedure

The researcher first conducted a series of interviews

to collect information needed in analyzing the process

and flow of transactions, and to gather forms and

reports necessary in designing a system that would fit

to the requirements of the end-user. The system was

Streamlining Solution for Procurement Management through Automation

then designed and developed according to

specifications and in consideration of the existing

needs of the end users. When the system was already

running, the researcher proceeded to the evaluation

stage where the system was used and evaluated by

intended users, IT experts and Technical staff. The

researcher administered the evaluation materials

herself using the two sets of questionnaire based from

ISO 25010 Software Product Quality Standard to

ensure valid and reliable data. The gathered data were

then tabulated and scored after which these were

analyzed and interpreted.

3.5 Data Analysis Technique

Process analysis presented textually on the basis of

the procedural steps of the V model of the SLDC was

employed in analyzing the development phase of the

developed system. The project would be deemed

successfully completed upon thorough application of

the different phases of the System Development Life

Cycle. On the other hand, weighted scores and

weighted mean were utilized to determine the

acceptability of the PMS on the basis of ISO 25010

Software Product Quality Standards.

4 RESULT

The project was successfully completed through the

application of the different phases of System

Development Life Cycle. The following table shows

the result of the thorough investigation on the

different problems encountered in the manual process

of procurement and its solution using the developed

Procurement Monitoring System.

Table 1: Problem Encountered in the Current Process and its Solustions

TRANSACTION WORKFLOW

PROBLEMS ENCOUNTERED

SOLUTIONS

Consolidation of APP and PPMP

- Manual checking and approval of

document

- Manual encoding and

consolidation of documents using

excel formulas

- Automation of the submission,

approval, consolidation and of

APPs and PPMPs through the

APP and PPMP File Upload

Module, Budget Allocation

Review and Approval Module,

APP and PPMP Consolidation

Module of the PMS

Procurement Process

- Hustle of repeatedly encoding

information in various forms

- Monitoring problems

- Storage of records

- Transparency of transactions

- Development of the

procurement management

system that automates the

procurement process from the

creation of purchase requests up

to the printing of certification to

the winning bidder.

- Notification for posting of

information, status and progress

of the procurement for

transparency were also included

Inventory Management

- Manual checking of inventories

- Loss of records

- Data inaccuracy

- Human errors

- Integrate an inventory

management system that will

monitor and update the status of

purchased and released supplies

and equipment and will keep

track of the issued and

transferred equipment

ICPsy 2019 - International Conference on Psychology

Table 1 detailed the common difficulties in the

procurement process and its solution through the

development of Procurement Monitoring System that

meets the following objectives: (1) develop a

procurement management system that automates the

submission, consolidation and approval of APPs and

PPMPs and the procurement process from the

creation of purchase requests up to the printing of

certification to the winning bidder and (2) integrate

an inventory management system that monitors and

updates the status of purchased and released supplies

and equipment and keep track of the issued and

transferred equipment.

For the software acceptance evaluation, the

following tables show the results made by the IT

Experts, Technical Staff and End-Users on the

developed system based on ISO 25010 Software

Product Quality Standards.

Table 2: Summary of Evaluation Results of the

Procurement Monitoring System by the IT Experts and

Technical Staff

ISO Quality

Standards

IT EXPERTS AND

TECHNICAL STAFF

Weighted

Mean

(WM)

Qualitative

Description

Functional

Suitability

3.67

Very Functional

Performance

Efficiency

3.53

Very Efficient

Compatibility

3.67

Very

Compatible

Usability

3.72

Very Usable

Reliability

3.53

Very Reliable

Security

3.69

Very Secured

Maintainability

3.82

Very

Maintainable

Portability

3.69

Very Portable

As presented in the table, the system got a

qualitative rating of Very Functional with an over-all

rating of 3.67.This results imply that the PMS

provides all the essential features and functionalities

necessary for the procurement operation such as

monitoring of requested, procured, delivered and

transferred supplies and equipment of the College.

Meanwhile, the computed over-all rating of 3.53 for

performance efficiency denotes that the system is

very efficient in providing accurate and appropriate

reports and outputs while working under minimal

system requirements. Likewise, the calculated overall

rating of 3.67 for Compatibility indicates that the

system is very compatible, and thus, can be used

simultaneously with other applications and can share

the same hardware or software environment without

affecting the performance of other applications.

Moreover, the overall rating of 3.72 with a qualitative

description of Very Usable for Usability denotes that

the system can be used to achieve specified goals with

effectiveness, efficiency and satisfaction as made

evident by its user-friendly interface. Moreover, the

rating of 3.53, qualitatively described as Very

Reliable for Reliability implies that the GAMPS

consistently provide features for recovery in case of

failures or any untoward incidents. The shown overall

rating of 3.69 for Security denotes that all information

stored in the database of the PMS is secured and it

features the creation of different levels of access for

users provided by encrypted password so that

unauthorized users cannot enter and alter information

within their scope. Also, the system got an overall

rating of 3.82 for Maintainability which implies that

the PMS’s updates can easily be done because the

system’s components and structure are easy to

understand. Furthermore, the computed overall rating

of 3.69 for Portability indicates that the system can be

used in different environments or operating system

without experiencing problems or difficulties.

The results of the evaluation show that the

PMS complied with the different software quality

criteria of the ISO 25010 Software Product Quality

Standards. This implies that the developed system is

a quality software product that can be implemented

and integrated in the workflow of transactions of the

procurement and monitoring of supplies and

equipment.

Table 3: Summary of Evaluation Result of Procurement

Monitoring System by the End-Users

ISO Quality

Standards

END-USERS

Weighted

Mean (WM)

Qualitative

Description

Functional

Suitability

3.73

Very Functional

Performance

Efficiency

3.64

Very Efficient

Usability

3.77

Very Usable

The table shows the assessment of the End-users

on the developed system based on selected criteria

from the ISO 25010 .The result implies that the

developed system is functionally suitable for the

needs of the end-users as shown in the overall rating

of 3.73, qualitatively interpreted as Very Functional.

The PMS provides operational functionalities in

terms of procurement management, automated

submission and approval of Annual Procurement Plan

Streamlining Solution for Procurement Management through Automation

(APP) and Project Procurement Management Plan

(PPMP), and an inventory module for the monitoring

of requested, procured, delivered and transferred

supplies and equipment of the College. The over-all

rating of 3.64 that the system obtained on

Performance Efficiency implies that it can work using

minimum system requirements and still provide

accurate and timely results. Additionally, the 3.77

overall rating in Usability denotes that the system can

be used to achieve specified goals with effectiveness,

efficiency and satisfaction as made evident by its user

interface that is easy to learn and adapt with.

The results indicate that the end-users were ready

to accept and adapt the system and integrate it in their

process and workflow of transactions. This implies

that the system is Very Functional, Very Efficient and

Very Usable and therefore can highly be

recommended for use in any SUC, particularly in

ASCOT.

5 DISCUSSION

The study focused on the development of

Procurement Monitoring System for Aurora State

College of Technology that features the

computerization and automation of the processes and

flow of transactions in the budget, procurement and

supply monitoring of the College. This includes the

development of modules: 1) Dashboard, 2) APP and

PPMP File Upload Module, 3) Budget Allocation

Review and Approval Module, 3) APP and PPMP

Consolidation Module, 4) Procurement Management

Module, 5) Inventory Management Module, and (6)

System Setting Module that handles the submission,

approval and consolidation of Annual Procurement

Plan (APP) and PPMP, and monitors budget

allocation as well as the whole procurement process

including reliable inventory system for the supplies

and equipment of the College. The system works on

a Local Area Network set-up wherein there are three

sets of user admin accounts for Budget Office,

Procurement and Planning Management Unit, Supply

Office and a user account for Academic Department

and Unit Office Heads with different functions and

level of access and restriction based on their

respective functions.

The project was successfully completed through

the application of the different phases of System

Development Life Cycle where each phase is

described and explained below.

5.1 Planning

The proponent conducted series of interviews to the

concerned offices to study the methods, processes and

flow of procurement and inventory of supplies that

leads her to the identification of the problems

encountered in manual process. In addition to the

information gathered from the interviews, the

proponent also studied the policies and guidelines of

RA 9184; the Government Procurement Reform Act

for the identification of features and functionalities of

the proposed system and in order to ensure that no

existing rules was violated. Then, the researcher

created a list of activities and schedule of the

implementations of the development phases through

a Gantt Chart.

5.2 Analysis

The researcher conducted an in-depth analysis of the

process and flow of the current setting to determine

where the proposed system would be integrated and

implemented. From the given inputs, a data flow

diagram for the existing workflow and developed

workflow was created. A use case diagram was also

designed upon identifying the persons who would be

involved in the proposed work flow. The software and

hardware requirements were also identified in this

phase to determine the most appropriate and best

suited specifications for the system.

5.3 Design

The researcher used different models to create and

establish the design of the system and database. She

also used data normalization to eliminate

redundancies and to determine which fields would be

linked to certain tables. A data dictionary was also

formulated to show the types of data used and the

length of each field. Lastly, an entity-relationship

diagram was also designed to explain the

relationships between the tables used in the

development of the study.

5.4 Coding

The researcher used PHP scripting language in

writing the source code of the system while

Bootstrap, HTML and CSS was used in designing the

system’s graphical user interface. In establishing the

database of the system, the researcher employed My

SQL to hold all the data, information, and records of

the system.

ICPsy 2019 - International Conference on Psychology

5.5 Testing

In this phase, the system was installed in different

computers to test its appearance and performance in

different environments. It is then subjected to

Performance Testing, System Flow and Error Testing

and Typographical Testing to check system flow

error, output generation errors, typographical and

other errors that might be encountered in using the

system. All errors and bugs were gathered and

skillfully resolved upon the release of the final

version of the system.

5.6 Implementation

The system was properly turned-over to the intended

offices and was installed in their respective computer

units. An orientation on how to use the system was

conducted for the users after they were requested to

evaluate the system based on the criteria adapted from

ISO 25010 Software Product Quality Standards.

The PMS was found conformed to the software

quality requirements adapted from the ISO 25010

Software Product Quality Standards such as

functional suitability, performance efficiency,

compatibility, usability, reliability, security,

maintainability and portability, based from the results

of the software acceptance evaluation made by the IT

Experts, Technical Staff and End-users.

6 CONCLUSIONS

The Procurement Monitoring System was

successfully developed through the different phases

of the V-Model of the System Development Life

Cycle and may therefore be implemented in any State

University and Colleges in the Philippines. It

complies with the requirements specified in the ISO

25010 Software Product Quality Standards in terms

of Functional Suitability, Performance Efficiency,

Compatibility, Usability, Reliability, Security and

Maintainability, and Portability. The system provides

a reliable, accurate and secured information system

that can address the problem of government offices in

terms of procurement, monitoring, and inventory of

supplies and equipment.This system reduce the time

of operation and simplify complicated tasks in terms

of recording supplies and monitoring transactions

while the user can, at the same time, track every

transaction movement done.

The Researcher recommends that the developed

PMS be implemented for use of any State University

and College or any government office in the

Philippines for the effective monitoring of budget

allocation, procurement management and supply

inventory. They may support the implementation of

the PMS by providing the hardware requirement

(server computer, work stations) and network

arrangement essential for the full operation of the

system. Upon the implementation of the PMS, they

may also conduct advance training for users regarding

the procedures and how the system will be properly

and effectively utilized and maintained.

To facilitate additional learning, further studies

may be conducted to determine the effectiveness of

the PMS as compared to the traditional or manual

process and may opt to develop an upgraded web-

based procurement management system to enhance

more features and functionalities of the system.

ACKNOWLEDGEMENTS

The author gratefully acknowledge the contributions

of Prof. Alexander S. Cochanco, and Dr. Manuela P.

Gutierrez, for the unending and untiring support,

efforts and encouragement, and most specially, for

the brilliant ideas and suggestions toward the

completion of this research and to the ASCOT

personnel for the warm and supportive

accommodation as well as for the time they extended

to provide all the printed materials, like rules, policies

and procedures, manuals and other forms.

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