Benefits and Barriers of Digital Procurement: Lessons from an Airport Company

Abstract

Implementing a well-integrated procurement system and applying uniform practices to achieve the strategic goals of any company is a complex phenomenon. Navigating the digital procurement systems in achieving supply-chain resilience remains a predicament. Framed within the technology acceptance model (TAM), which is a key model in understanding the predictors of human behaviour toward the potential acceptance or rejection of the technology. This study explored the benefits and barriers of digital procurement at Airports Company South Africa (ACSA). A qualitative approach in a form of a single holistic case study design was adopted. The sample involved 18 employees and individuals who were supply chain management (SCM), information technology (IT), and programme management office (PMO) professionals. Semi-structured interviews conducted focused on those with extensive experience on procurement, digital technologies, procurement automation or the implementation of transformation programmes. Digital procurement is a value-adding function at ACSA with the possibilities of providing cost reduction in the supply chain. However, the participants highlighted job losses, cyber security, lack of interoperability, lack of skills and system downtimes as obstacles affecting the adoption of digital procurement and as organizational barriers. The infusion of digital technologies into various aspects of organisational processes and outcomes remains a complex, dynamic, fluid, and volatile phenomenon. A framework highlighting critical focus areas when it comes to the adoption of digital procurement of digitalization is presented.