Page 18 - CMA Journal (Jul-Aug 2026)

A r t ic les S ec t ion

Mostly business owners and managers hesitate to evaluation. By using Arti cial Intelligence and Data SMEs can enjoy the digital procurement system digitalize economy. Government can support SMEs for
Digital Procurement for Small and adopt and implement the digital procurement system Analytics, the manager can negotiate with suppliers in through Cloud Based procurement services which is digital procurement through digital training facility
comparatively cheaper than dedicated digital
from government education institutions, low markup
due to initial acquiring costs and required training to
best way and develop more e ective procurement
Medium Enterprises (SMEs) operate the system. Digital procurement in Pakistan strategies. procurement system. nancing facility, and tax incentives.
can help to reduce the limitations of traditional
Electronic Payments and Digital Invoicing
Lack of Technical Skills
Development of A ordable Digital Solutions
procurement system. The better arrangement of
internet, cloud-based software, mobile technologies, Digital invoicing helps to simplify the procurement Mostly SMEs in Pakistan have untrained or less trained In Pakistan, mostly SMEs have limited nancial
sta of digital procurement system. It is necessary to
background, so they can’t a ord dedicated ERPs for
system and improve accuracy in procurement process.
and digital payment system can create modern have well trained and familiar with the digital their businesses. Cloud-based procurement systems
Introduction Planning Systems (ERPs), procurement environment in SMEs. There are many Similarly, the electronic payments are an important procurement system in SMEs. Existing sta of need to be developed and available to use at
part of digital procurement system, which can improve
Cloud-based procurement tools available less costly to SMEs to convert their
Digitalization in business is the priority of every systems, e-invoicing, digital traditional procurement system into digital suppliers’ payment process, cash ow management, traditional procurement system may face di culties in a ordable price. Low price digital solutions can
business in the world. Procurement is the main part of payment methods, Supplier procurement system. Digital procurement system is accuracy in nancial statements, and reduced risk of digital procurements system because they do not have improve adoption rate in SMEs, so, they can implement
the business which can signi cantly impact the Relationship Management necessary for businesses because of customer’s fraud. knowledge and skills of that technology. SMEs should digital procurement system to meet modern business
arrange the training sessions for their sta to learn the
operational e ciency, production process, customer (SRM) system, Block expectation of fast processing, technology-oriented Advantages of Digital Procurement software usage, online supplier searching, data need.
satisfaction, and nancial results. Digital procurement Chain, Mobile Procurement suppliers, and meet the needs of market competition. management, and knowledge of cyber security. Training and Capacity Building
is use of technology and digital platforms to purchase Apps, Robotics Automation It may help to improve e ciency, market competition, Improved Purchasing E ciency SMEs need to create a system or platform to provide
raw materials, nished goods, nd new suppliers, and Process, Demand transparency, reduced risk and fraud, future planning, Digital procurement system can reduce time required Limited Technology Setup continuous training and skills development programs
make electronic payments to suppliers against Forecasting Process, and inventory management, cost control, and cash ow to contact with supplier, negotiation, approval, The latest technology, like internet, software, for the sta of SMEs. This system can be developed
purchases and services rendered. By using digital Risk and Compliance management. invoicing and payments. So, the e ciency of sta can computers, and online platforms is necessary to fully with the help of education and training institutions,
procurements SMEs can take bene ts of cost cutting, Solutions. Digital be improved and saved time can be used for other implement the digital procurement system in business. quali ed trainers, software developers, programmers,
time savings, building strong relationship with Procurement systems Tanveer Ul Qamar, FCMA Major Digital Procurement business activities. In Pakistan, the internet access to businesses is and experienced professionals.
suppliers, and reducing fraud risk and audit burden by allow real time data Chief Executive O cer Technologies Improved Cost Management improving continuously but still most areas where Encouraging Digital Supplier Networks
digital quotations, purchase orders, digital invoices, availability (real time Allied Financials SMEs are working without this infrastructure or less
and electronic payment. It also improves inventory reports), fast processing, E-Procurement Platforms Digital procurement system can improve cost infrastructure. Due to these issues, SMEs are unable to Digital networks of suppliers and buyers can enhance
management, communication with suppliers, and accurate data, and control over procurement activities SMEs in Pakistan can take bene ts by using the management by online search of suppliers, online communicate online with suppliers, electronic the adoption of digital procurement systems by SMEs
lower sta requirements. In digital procurement, there through online systems. E-procurement platforms to convert its paper based price comparison, and lower sta requirements. payments, and use of online platforms to run digital in Pakistan. In a digital system, the buyer and the seller
are some challenges for SMEs, which include unskilled and time consuming work into digital form. Through Improved Transparency procurement system. can communicate quickly and compare the suppliers'
sta , initial implementation cost, change resistance, E-procurement Platform, SMEs can purchase online, Digital procurement system can improve transparency Risk of Cyber Security quotations and delivery time. Digital networks also
limited internet access, and cyber security issues. search new suppliers, comparison of prices, and by electronic transaction data storage, real-time data Mostly SMEs do not have proper security system to create opportunities for SMEs to enter the larger
Overall, the digital procurement is necessary for the negotiate with supplier online. It can also improve the analysis, and minimize error in record transactions. protect the data of procurement, that’s why they feel market, which can increase their business.
economies like Pakistan. Here we will discuss the e ciency by quick quotation requests, purchase Supplier Management threat of loss of data. Digital procurement system has Conclusion
concept of digital procurement and its adoption by approval, order tracking, e-invoicing, and digital data includes contacts of suppliers, business
SMEs in Pakistan, the bene ts of adoption, challenges payments. By using digital procurement system, SMEs can analyze transactions, contracts with suppliers, and price. This Traditional procurement system is unable to meet the
faced by businesses, and recommendation to improve Enterprise Resource Planning (ERP) Systems the suppliers in term of price, time of delivery, quality, creates risk for privacy and security. So, SMEs must business need in current technological environment. It
its adoption. Enterprise Resource Planning system is a combination and reliability. So, the business can select better secure their data through sta training, security is essential to replace the traditional or paper-based
supplier and develop strong suppliers’ relationship.
procurement system with digital procurement system
Procurement has two types; Manual Procurement, and of di erent systems including, procurement, Improved Market Share software, strong passwords, and limited authorization to run the business in modern world. By a ordable and
Digital Procurement. Manual procurement involves production, inventory management, sales, human of approval, payments and other process in digital reliable digital procurement tools, the SMEs can play a
traditional method of procurement activities like resource, and nancial reports. Normally, ERPs are very With help of digital procurement system, SMEs can procurement system. signi cant role in economic development of Pakistan.
paper-based approval, telephonic or face-to-face Source: https://www.digital-adoption.com/ expensive and mostly SMEs in Pakistan can’t a ord compete in market where larger companies with Change Resistance To increase the adoption rate, we have discussed the
communication and negotiation with suppliers. It is them. Currently, there are Cloud-based ERPs available strong market share based on modern technologies SMEs in Pakistan mostly run by owners through available tools for SMEs and their advantages and
not compatible with modern world needs because in market which can improve the SMEs e ciency exist. So, in Pakistan mostly businesses are SMEs, which traditional business approach to lower business limitations. These tools can help SMEs to improve
today’s world is fast moving and technology-based Successful digital procurement system depends upon e ectively as compare to traditional paper-based can participate in improvement of economy by running costs by hiring unskilled worker at lower better procurement system with e ciency, reliability,
businesses. Manual system is under use for many years modern technology, quali ed and trained sta , strong system. adopting modern technologies using in procurement salaries. So, unskilled workers resist to changing of secure, low risk of fraud, cost reduction, low sta
but it is slow processing based, fraud risk at high level. leadership, and support of external institutions. Digital Cloud-Based Procurement Solutions process. traditional procurement system to digital procurement requirement, strong supplier relationship, and better
So, digital procurement is important requirement for procurement system is not only the online purchasing, Challenges of Digital Procurement system because they have fear of digital skills or less strategic decision making. Digital procurement can
businesses especially SMEs to run their business at fast but it is business strategy to transform the business Cloud-Based Procurement system work through job opportunities due to technology replace worker enhance the long-term sustainability of business by
pace to meet the needs and challenges. through cloud-based software, enterprise resource internet and doesn’t require heavy servers and System perception. Owners of business should explain the technological enhancement and strategically
planning (ERP), arti cial intelligence (AI), block chain, installations. Cloud-Based Procurement Solutions are transformation.
Digital Procurement process is fast due to use of robotics system, predictive data analytics, e-invoicing, a ordable to SMEs in Pakistan due to low subscription Financial Limitation bene ts of latest technology to their sta and arrange
modern technology and arti cial intelligence-based fee. SMEs can subscribe the Cloud-Based Procurement SMEs in Pakistan are generally working with limited the awareness sessions in-house or through other It can also help to improve the market position, supply
systems. It converts whole procurement system into and digital payments. System as per their needs. resources and capital, so it is harder for them to use training institutions. It can also encourage the revision chain management, inventory management, cash ow
automate procurement process, like quotations, Role of Digital Procurement in SMEs modern technology in business to meet the needs of of salary package for quali ed sta to overcome the forecasting, and reduce audit working papers.
evaluation of suppliers, comparison of prices, purchase Arti cial Intelligence and Data Analytics market requirements and competition. It is di cult to resistance to change.
order approval, digital invoicing, and e-payments. This SMEs in Pakistan run with limited resources, so they The modern technologies like Arti cial Intelligence upgrade the systems to run business due to limited Recommendations for Promoting
will reduce audit working and procurement sta face many challenges which include initial and Data Analytics are essential to improve the
requirements. By replacing traditional paper-based implementation costs, lack of awareness of decision making in procurement process. These nancial budget. Digital Procurement Adoption
procurement system with digital procurement technologies, technical skills to operate system, technologies can help to identify suitable suppliers, As compare to large companies which can easily Government Support and Policy Development
systems, modern businesses are adopting digital required infrastructure to manage digital procurement better price comparison, demands prediction, cost obtain the modern technology and systems, In digital procurement system adoption by SMEs,
platforms; e-procurement systems, Enterprise Resource system. saving opportunities, and suppliers’ performance computers, software and other system requirements. government can play a signi cant role to enhance the

16 ICMA’s Chartered Management Accountant, Jul-Aug 2026