THE CONTRIBUTION OF E-PROCUREMENT ON THE PERFORMANCE OF SHIP MANAGEMENT COMPANY IN SOUTH ASIA: A CASE STUDY Chathurika Deshani Hulangamuwa 218450E Thesis/Dissertation submitted in partial fulfillment of the requirements for the degree Master of Business Administration in Supply Chain Management Department of Transport Management and Logistics Engineering University of Moratuwa Sri Lanka User Typewritten Text TH5984 User Typewritten Text LB/TH/39/2025 i DECLARATION I hereby declare that this submission is my own work and has not been copied from any published or written material by another person, except where paper acknowledgement is made within the text. Signature: Date: 20.05.2025 The above candidate has carried out research for the Masters Dissertation under my supervision. Name of the supervisor: Dr Indika Sigera Signature of the supervisor: Date: 23.05.2025 ii ABSTRACT In these highly, competitive and innovative market conditions, the majority of organizations and firms are tending towards the adoption of new technologies to retain their competitiveness. This is because firms failing to embrace technology promptly face the impending risk of losing both customers and suppliers. In today’s business environment, the maritime transportation sector integrates technology to reduce overhead costs and improve efficiency and security, with a complex supply chain involving numerous stakeholders, seamless data transfer is essential. Within the maritime sector, procurement plays a fundamental role, given that vessels typically procure substantial quantities of supplies to sustain daily operations. The objective of this study was to explore the rationale behind implementing e-procurement, identify the barriers encountered during its implementation, and assess how the benefits of e-procurement contribute to the enhancement performance of ship management companies. The study identified several performance factors, including cost, supply chain visibility, cycle time, procurement control, inventory management, and purchasing errors, all of which were impacted by the implementation of e-procurement. As a qualitative research endeavor, data were gathered through questionnaires and interviews. The results of the study indicate that e-procurement is a pivotal factor implementing within ship management companies and plays a significant role in improving overall company performance. Key Words: E-procurement, Performances, Maritime Industry, Ship Management Companies iii TABLE OF CONTENT Declaration i Acknowledgements ii Abstract iii Table of content iv List of Tables vii List of Appendices viii 1. Introduction 1 1.1 Back ground of the study 1 1.2 Introduction to Ship Management Company 2 1.3 Objective of the study 3 1.4 Problem Statement 4 2. Literature Review 2.1 Procurement 6 2.2 E-procurement 7 2.3 E-procurement Benefits 9 2.4 E-procurement in maritime industry and ship management companies 12 3. Methodology 3.1 Research Design 14 3.2 Research Approach 15 3.3 Sampling Method 17 3.4 Data Collection Method 19 3.4.1 Primary Data 20 3.4.2 Methodological approach to attain first and second questions 21 3.4.3. Methodological approach to attain third question 22 3.5 Modification of the survey questionnaire form 24 3.6 Modification of interview questionnaire form 25 3.6.1 Cost Reduction 27 iv 3.6.2 Reducing Cycle Time 27 3.6.3 Better Inventory Control 28 3.6.4 Increasing efficiency & effectiveness 29 3.6.5 Increasing visibility in supply chain 29 3.6.6 Error Minimizing 30 3.6.7 Better Reporting 30 4. Data Analysis 4.1 Analysis of survey results 32 4.1.1 Profile of respondents 32 4.1.2 Descriptive Statistics 33 4.1.3 E-procurement barriers in maritime industry 35 4.1.4 Status of procurement function of the company 37 4.2 Analyze of interview results 38 4.2.1 Cost reduction 39 4.2.2 Reducing cycle time 41 4.2.3 Better inventory control 43 4.2.4 Increasing efficiency & effectiveness 45 4.2.5 Increasing visibility in supply chain 47 4.2.6 Minimizing supply errors 49 4.2.7 Better control/reporting 50 5. Discussion and Conclusion 52 5.1 Discussion on research question 1 52 5.1.1 Reduced procurement cycle time 52 5.1.2 Reduced operational & inventory costs 53 5.1.3 Error Minimization 54 5.1.4 Improved visibility in supply chain 55 5.1.5 Better management information reporting 55 5.2 Discussion on research question 2 57 5.2.1 Company culture 58 5.2.2 Internal end user resistance to change 59 v 5.2.3 Lack of skill personal 60 5.3 Discussion on research question 3 61 5.3.1 Cost saving 61 5.3.2 Cycle time 62 5.3.3 Inventory control 63 5.3.4 Efficiency & effectiveness 64 5.3.5 Visibility in supply chain 65 5.3.6 Error minimizing 66 5.3.7 Bettor reporting 67 5.4 Overall conclusion 68 5.5 Recommendations for improvements 69 References 74 vi LIST OF TABLES PAGE Table 3.1 Selected Department and persons for sampling 19 Table 3.2 Selected Department and persons for survey 22 Table 3.3 Selected Department and persons for the interview 24 Table 3.4 Question Dimensions 25 Table 3.5 Reviewed benefits of e-procurement 26 Table 4.1 Profile of respondents 32 Table 4.2 Reasons for e-procurement adaptation 34 Table 4.3 E-procurement barriers 35 Table 4.4 Status of current procurement function 37 Table 4.5 Coded data based on research theory 38 Table 4.6 Summary of collected data on cost reduction 41 Table 4.7 Summary of collected data on cycle time reduction 43 Table 4.8 Barriers for improving inventory management 45 Table 4.9 Barriers to increase efficiency 47 Table 4.10 Results of Supply Chain Visibility 48 Table 4.11 Summary of data on reducing error minimizing 49 Table 4.12 Summary of data on statement about control enhancement factors 51 vii LIST OF APPENDICIES DESCRIPTION PAGE Appendix – A Survey Questionnaire Form 78 Appendix – B Interview Questionnaire Form 80