The application of the information technology in the procuring agencies of Bhutan

Abstract

This study investigates the integration of information technology devices, such as radio frequency identification (RFID), in the inventory management processes of budgetary bodies to enhance efficiency and reduce costs and time. By employing sensors, RFID, GPS, cameras, and wearables the sensor-integrated spectacles, the research aims to improve the performance of procuring agencies economically, environmentally, and socially. The methodology employed in this research involves a value stream mapping method-based survey questionnaire conducted in two phases, focusing on process time and Triple Bottom Line (TBL) perspectives. Analysis of the data gathered leads to the formulation of a process improvement plan, with a particular focus on visualizing and analyzing the impact on the TBL. The findings indicate a need for improvement in the current inventory management process. The inventory processes are identified as value-added activity (VA), non-value-added activity (NVA), and necessary non-value-added activity (NNVA). Using this tool, waste in the value stream can be determined, and new processes can be proposed to reduce waste. As a result, total working time is reduced by 27 %, and the VA is increased by 8.36%. There is a notable difference of 4 minutes and 54 seconds in process time between the current manual process and the IT-based process, along with a disparity of 11 staff members required in the process. Utilization of technology results in significant improvements, with competencies increasing by 50 %, profitability by 80.90 %, and waste reduction by 99.95 %, as evidenced by the study's effect on TBL.

Recommendations include the facilitation and coordination of information technology infrastructure development to enhance the existing structure. Digitalization within procuring agencies is proposed to improve efficiency and accuracy in various inventory management tasks, including receiving, record-keeping, and stock management. Additionally, the study highlights the importance of ensuring the sustainability and effectiveness of the new system, despite potential barriers to investment in infrastructure. In conclusion, the research underscores the transformative potential of digitalization in procurement agencies, offering opportunities for increased efficiency, transparency, and sustainability.