Effects of Procurement Processes on Project Execution in A Project Management Company in Cape Town, South Africa

Abstract

Accentuating the compelling procurement challenges in project execution, which comprises supplier-related issues, strategy selection issues, cost reduction and savings achievement factors, data accuracy issues, and stakeholder management concerns, this study envisioned uniting the challenges that occur in procurement processes the effects these challenges have on project execution. To clearly illustrate the magnitude of challenges faced in procurement processes, a project management company in Cape Town, South Africa, was chosen as the subject of study. The data of this study was collected through means of quantitative method on the company under study whereby a survey questionnaire was disseminated to participants for self-administering, and the data collected were analysed using version 25 of the Statistical Package for Social Sciences (SPSS) software. The results of this study suggest that lack of training of the project team, corruption, favouritism, fraud and delays from suppliers are the major causes of poor procurement, and these results agree to the main thrust of the literature reviewed in the study that any lack of training, policy compliance and consistency in compliance of law will cause failure and challenges in any organisation. This study further aimed to add input to the existing body of knowledge concerning the effects of procurement processes on project execution in project management and to contribute to the existing literature in procurement management. Considering the challenges mentioned above, it is to be hoped that the study would be of interest to project managers, the South African workforce, individuals, and academics in general, and valuable to all those seeking improvement in the field of project management.

Procurement practices and operational performance: a study of linear and curvilinear relationships in a developing economy

“…Furthermore, Vonderembse and Tracey (1999) referred to procurement as “the acquisition of goods or services, has been around for thousands of years”. In addition, Adamu et al (2021) considered procurement “as a series of activities carried out by an organization to achieve effective supply chain management.” Finally, Kafile and Fore (2018) defined procurement as “the structure that characterizes the administrative system approved by customers for the execution of project procedures and subsequent management of the project.”…”

“…Other related terms in literature include acquiring/the acquisition of goods or services (the acquisition of goods and services includes the acquisition of things such as materials, equipment, supplies, utilities, repairs and maintenance and research and development) (Public Procurement and Disposal Act, 2005; Vonderembse and Tracey, 1999). It is interesting to note that while relatively classical observations of the concept, exemplified by the Public Procurement and Disposal Act (2005) and Vonderembse and Tracey (1999), may define procurement in traditional terms as the acquisition of goods or services through contractual means, contemporary authors such as Adamu et al (2021) and Kafile and Fore (2018) offer broader, more strategic interpretations. They argue that procurement encompasses not only the acquisition process but also the integration of various business operations and strategic alignment with supply chain management.…”

Evaluation of the Procurement Management System for Residential Complex Projects in Erbil Governorate

“…Masithembe Kafile at el. [12], characterized the main causes of poor procurement processes on project implementation into the low quality of goods delivered by suppliers, lead time variability, internal factors, poor time management, and system breakdown of online data capturing software to track supplies. Depaoli [13], in his research, indicated that procurement management is one of the most critical fields in project management that incorporates widely the administrative elements of planning, communicating organizing, staffing, leading, and controlling.…”