Vicko Pratama

Group 1 – MHM 09

Individu Final Assignment

E-Procurement : A case Study about Health Sector In Turkey

ABSTRACT :

E-procurement is a new technology that will greatly affect the electronic buying and selling
flow and increasing the efficiency of traditional buying and selling flow. The main objective
of this case study is to determine the ratio of the use of electronic devices in the operation of
the use of E-procurement. This study uses a research strategy by getting information from the
hospital and taking data in a semi-structured interview and observation. In theory, the use of
E-procurement can improve the flow of pharmacy, and procurement of drugs from doctors to
patients. The main reduction of this method is time and cost without requiring a lot of time or
financial investment. By doing this research it is hoped that E-procurement learning material
can be used in developing countries

Keywords – E-Procurement, Supply Chain Health Sector, Case Study, Pharmacies

INTRODUCTION:

The procurement of goods and services is an important sector in service and

manufacturing. With the changing times the supply chain management has also turned out to
be very important to determine the profitability of a company. The company is currently
maximizing mutual profit based on the part of procurement that has a strong partner will
increase operational efficiency and to form this requires a very good relationship between the
two stakeholders.

The main purpose of supply management is to meet the needs of customers with the
lowest possible cost. To fulfill this, there are cycles in the supply chain that are affected by
buying and selling. Providing the same service at the lowest cost is of course the main thing in
the company. With this goal the technology will play a very important role to help.

With the development of technology in the business world between supply chain
members, sending money is made easier, supplier search increases, paperwork for transactions
is reduced and the possibility of errors can be eliminated. The use of technology also has an
effect on stock calculations and ordering costs. Furthermore, the technology usage of ratios in
procurement activities has come to play a pivotal role in determining the performance of firms,
since the emergence of online purchasing has become an interesting and special performance
indicator.

E-Procuerment is an integration between procurement of goods by utilizing technology

when business processes are running. Take advantage of the advantages of technology without
the use of paper. E-procurement has the advantage of determining potential supply alternatives,
to purchase goods and services, to transfer the prices of these goods and services and to interact
with suppliers. E-procurement utilizes the internet and other web based technology in several
forms:

• Supplier online selling accelerates access to up-to-date product data, pricing and
delivery information.
• Web- and Internet-based EDI-applications provide an efficient and effective
way to automate the exchange of information between sellers and buyers.
• Desktop purchasing systems (DPS) automate the buying operations.
• Online tools to publish requests for quote (RFQ) and requests for proposal
(RFP) for supporting procurement activities
 • Online auctions assist to determine purchase prices and conditions for strategic
and operational activities.
• The Internet is used for establishing online market places, so large numbers of
buyers and sellers are brought together.
• A number of specialized applications such as catalog building, application
integration, auction engines, payment and fulfillment services are available for
use.

The use of e-procurement also has some risks that we should know about.
1. Internal Business Risk: this technology cannot stand alone and requires other technologies
that support the effectiveness of technology.

2. External Business Risk: the technology we have must also be supported by technology from
our supplier's side in order to be efficient.

3. Technology Risk: there are many types of E-Procurement, so finding one that suits our needs
is also a risk.

4. E-Procurement Process Risk: technological advances also have the risk of digitally breaking
down security which will greatly affect the company's operations.

LITERATURE REVIEW

Research Discussions

Metler & Rohner, 2009 Exploring the current adoption of e-procurement technologies in
hospital pharmacies

Zheng et al, 2006 Telephone as a dominant practice for communicating with

suppliers

Gunesekaran & Ngai, E-procurement as a long term investment for entities

2008

Gunasekaran et al, Low usage ratio of e-procurement

2009

Min and Galle, 2003 No relations between e-procurement adoption chances with
suppliers, and benefits of EDI/ internet

Moon, 2005 e-procurement tools usage ratio

Ronchi et al, 2010 Six major benefits of e-procurement

RESEARCH METHODOLOGY

In this study, three private hospitals’ pharmacies are selected for evaluation of e-procurement
application levels and both benefits and barriers for implementing this technology in
procurement activities are observed. These aforementioned hospitals, which are named A, B
and C, are located in Ankara. Only pharmacies are taken into consideration among other
departments of the hospitals.

Two different data collecting methods are used to get information from these hospitals. These
methods are semi structured interviews and nonparticipant observations.The aim of these
observations were to fully understand the hospital pharmacy’s working environment. After
forming a base with a semi structured interview and observations, the other semi structured
interviews were made with the personnel responsible for procurement for hospital pharmacies
A, B and C

Hospital A

The drugs for all inpatients, who are receiving treatment in different wards, are obtained from
pharmacy and ward stocks. Replenishment of ward stocks is made by the pharmacy on different
times. The drug procurement of the hospital is made by the pharmacy. The replenishment times
of drugs change according to the type of drug.

There is a Hospital Computer Program (HCP) which has been designed by the information
technology department of the hospital. The pharmacy can follow stock levels for drugs by using
the HCP. The pharmacy can keep track of safety stock levels for all drugs and with the help of
the HCP

Hospital B

Pharmacy and wards stocks provide necessary drugs for inpatients. There are two types of
procurement activities in this pharmacy. One of them is general procurement, the other one is
additional procurement. General procurement is conducted from one center and additional
procurement is made in order to meet the excess drug demand

The pharmacy places its orders to the center once a week by e-mail or by telephone. The general
aim of the pharmacy is to maintain operations successfully by keeping as little stock as
possible. The pharmacy can follow its inventory by using a stock control program called
Bilmek. With the help of this program, the pharmacy can see the stock levels of drugs in
pharmacy and in each ward at any time.

Hospital C

Drugs used for inpatients are obtained from the hospital pharmacy and ward stocks. Drug
procurement is made by the pharmacy. At the end of each year, the demand for drugs for the
following year is forecasted by analyzing the past years’ demands. After the forecast the needed
drugs’ are obtained after biddings are made by all the potential suppliers. At these supplier
biddings corporate and commercial discount rates are noted with the consideration of yearly
forecasted demand rates for the drugs.

After the bids, suppliers are arranged according to their offers. Then, during the year bulk
buying of weekly, monthly or quarterly schedules are made by communicating sequentially
with suppliers according to prepared this list

COMPARISONS AND GENERAL EVALUATION

Pharmacy is the main door between suppliers and hospital departments. It can be seen from the
three hospitals that the pharmaceutical department has almost the same working techniques in
drug procurement. The goals of all pharmaceuticals are the same, namely meeting drug needs,
maintaining stock of drugs, and providing education about drug interactions and intended use.
Operationally the most important technology is the telephone, this is due to the ease with which
it is provided, there is no need for writing, and there is a direct opportunity for negotiation.
Some other technologies used are the internet and FAX, the internet is very important to make
an update on information. Fax is a technology that is less critical to telephone and internet.

Work techniques for additional purchases also have work techniques that are almost the same,
except hospital B, which prefers bulk buying because it has many branches.

The current technology that can be very helpful and not yet used maximally is E-MAIL, by
making a booking template so typing it once can send to many suppliers, this is much easier
compared to using telephone.

Obtained by a slight change in the flow above, the error rate that can occur can be drastically
reduced, changes in the position of the pharmacist to ward to help drug input from each ward,
with this error from humans can be reduced.
CONCLUSION

It is clear from the results of this study, that the use of E-procurement provides a positive thing
for all stakeholders. But keep in mind there are also risks from using this technology. its usage
can be expanded in small stages since the escalating competition among companies requires
the use of technology as much as possible in almost all operations
E-Procurement itself is already used in Indonesia, with the following flow

The flow used in Indonesia has been integrated with SIRS (hospital information systems), but
found several obstacles in applications in Indonesia such as the need for internal server
investment for data based security, the need for a stable internet network, the need for stable
electricity and the security needs of computer like UPS.

From a study at the Dharmais Hospital in Jakarta it was found that there was an increase in the
efficiency of time and cost with the use of E-Procurement
From the table found, there was a savings of 30,775 minutes and savings of 7.112.852 Idr.
Therefore, it can be concluded that the use of E-procurement is very helpful.

One of the technologies that are just beginning to be implemented in Indonesia is the use of E-
catalogs, but for the time being it is still not effective because there are still lead times and
vacancies of drugs in E catalogs and lack of availability of drugs.

REFERENCES :

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Turkey. International Journal of Business and Social Science. 2012;3(7):1-12.

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PURCHASING MELALUI E-CATALOGUE DI RUMAH SAKIT JIWA GRHASIA
DAERAH ISTIMEWA YOGYAKARTA TAHUN 2017 – 2018. JURNAL
KEBIJAKAN KESEHATAN INDONESIA : JKKI. 2019;8(3):113-120.
3. Eka Wijaja H. IMPLEMENTASI E-PROCUREMENT PADA RUMAH SAKIT.

Seminar Nasional Aplikasi Teknologi Informasi 2009 (SNATI 2009). 2009;:39-44.

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DI RUMAH SAKIT UMUM DAERAH PADANG PARIAMAN TAHUN 2017. Jurnal

Kesehatan Andalas. 2018;7:1-8.
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PENGADAAN BARANG DAN JASA SATUAN KERJA. SNKN 2018 |
SIMPOSIUM NASIONAL KEUANGAN NEGARA. 2018;.