An evaluation of suppliers' perception of the effectiveness of procurement system in the steel sector

Abstract

The procurement process plays a significant role in the materials management system of an organisation. It entails the planning and implementation of supply chains to satisfy the needs of an organisation so that required actions can be adopted for boosting the productivity of the materials team thereby increasing production. The steel sector faces challenges in adhering to procurement criteria, including tendering, evaluation, holding auctions among technically and commercially qualified bidders, and completing plant needs on time. The present study analyses the efficacy of the procurement system. The results indicate that the dimensions transparency, adaptability, ease of use, and grievance redressal are significantly associated while the timely payment is not significantly associated with the procurement system of the organisation. The findings of the study can enable the steel organisations to develop the necessary strategies for improving the procuring system.