The Effect of Automated Spend Analysis on Supply Chain Efficiency of Telecommunication: A Case Study of MTN Rwanda

Automated spend analysis provides leverage for businesses that want a more efficient method for saving money and establishing long-term business relationships in the procurement process. The purpose of this study was to evaluate the effect of automated spend analysis on Supply Chain Efficiency in the Rwanda Telecommunication industry; with MTN Rwanda as a case study. A combination of stratified and proportionate sampling was conducted on 265 employees of MTN Rwanda to obtain a predetermined sample size of 53 respondents from three levels including top, middle and low-level management. Primary data was collected through closed ended structured questionnaires while, Secondary data was obtained through review of relevant journals, internet and business magazines. Descriptive and inferential statistics were computed through SPSS software to perform data entry and analysis of findings; and to measure the mean, frequency, standard deviation and regression. Pearson Chi-Square was used to measure the effect of automated spend analysis on Supply Chain Efficiency. The results of the Chi Square exhibited a significant effect size of Automated Spend Analysis Software implemented by MTN Rwanda on its Supply Chain efficiency, (χ2 = 96.000a, P = 0.00 less than 0.05). The system had effect on spend visibility, spend analytics, cost reduction, and hence improved sourcing strategies and procurement performance. However, the software is not yet integrated with other systems working in silos. The integration with e-Sourcing Software and ERP would perfectly automate the overall Supply Chain operations thus resulting in supply Chain efficiency.