Digitalisation in the procurement process of a water utility: A South African perspective

Abstract

Orientation: Process digitalisation has been increasingly adopted as a strategic means of enhancing organisational performance. However, the digitalisation of inefficient processes risks perpetuating existing shortcomings by consistently delivering suboptimal results. Repetitive tasks are often default candidates for digitalisation, and some procurement tasks fall into this category.
Research purpose: Guided by four research questions, this study seeks to investigate the persistent bottlenecks arising from the entity’s reliance on manual practices in contract management, aiming to improve efficiency, transparency and overall process effectiveness.
Motivation for the study: Too often, procurement value is measured through cost savings, which are commonly achieved through sourcing and contracting. However, contract management remains a complex administrative task that is often disproportionately dependent on account managers for execution and oversight. This study investigates the digitalisation of the contract management task in the procurement process within a Water Utility in South Africa.
Research design, approach and method: A single-case qualitative research design was employed, using semi-structured interviews with key personnel involved in procurement activities within the selected entity. The data were thematically analysed to extract insights.
Main findings: The findings reveal critical gaps in contract management, characterised by inefficiencies, inconsistencies and delays stemming from manual workflows. The study highlights that effective digitalisation requires not only technological adoption but also organisational readiness and supportive environmental factors.
Practical/managerial implications: The digitalisation of the contract management task should be aligned with the organisation-wide digital strategy. Investing in digital infrastructure should be prioritised and supported by a skills audit and subsequent staff training.
Contribution/value-add: This study contributes by revealing contract management gaps driven by inefficient, inconsistent manual workflows, and shows that successful digitalisation requires both technology adoption and organisational readiness with supportive environmental conditions.