A Study on the Procurement Process at St Steels and Pipes

Abstract

Procurement plays an important role in maintaining the smooth flow of materials and supporting the overall performance of an organization. In a steel and pipe business, delays in purchasing, supplier response, material shortages and ineffective inventory control can directly affect day-to-day operations. This study examines the procurement process followed by ST Steels and Pipes, with particular focus on purchasing procedures, supplier selection and evaluation, approval practices and the role of Enterprise Resource Planning (ERP) in procurement. A descriptive research design was adopted, and primary data were collected through a structured questionnaire from 106 respondents working across different departments of the organization. Percentage analysis was used to understand the responses, while Chi-square, correlation and one-way ANOVA were applied to test selected relationships and differences. The findings indicate that supplier confirmation is the stage that takes the most time in the procurement process, while material shortages are the major procurement challenge. Price was identified as the most common supplier-selection criterion, and ERP was mainly valued for reducing paperwork and improving inventory control. The study also found a significant association between age and ERP usage frequency (p = 0.046). A moderate positive relationship was found between satisfaction with supplier performance evaluation and ERP effectiveness (r = 0.364, p < 0.001). However, years of experience did not have a significant effect on the selected dependent variable (F = 1.980, p = 0.122). The study recommends stronger supplier monitoring, improved inventory planning, greater ERP automation, better reporting and regular employee training to improve procurement efficiency. Keywords: Procurement, Supplier Management, ERP, Supplier Selection, Inventory Management, Procurement Efficiency, Steel Industry