Procurement planning as a strategic tool for public procurement effectiveness: Experience from selected public procuring entities in Dodoma city, Tanzania

Abstract

Purpose The significance of the public procurement function is on the survival and development of procuring entities and that of a nation at large. This study aims to focus on examining the influence of procurement planning on the effectiveness of public procurement, experience from selected public procuring entities in Dodoma city, Tanzania. Design/methodology/approach A cross-sectional design was adopted from which data were collected from 146 respondents who were purposively chosen from several public procuring entities located at Dodoma city in the United Republic of Tanzania by using a survey structured questionnaire and analysed through a binary logistic regression model. Findings Findings revealed that procurement planning as a strategic function significantly influences the effectiveness of public procurement. The binary logistic regression model included the implementation of prepared procurement plans (p = 0.039), the involvement of users as stakeholders and important institutional actors in public procurement (p = 0.033), compliance to procurement laws and regulations when planning (p = 0.016) and adequacy of budget (p = 0.042) as predictors of procurement planning were tested to be significantly related to the effectiveness of public procurement. It was concluded that public procuring entities can achieve public procurement effectiveness through procurement planning. Social implications The implications and policy recommendations of the findings of this study would be useful to procurement practitioners mostly in public procuring entities. Originality/value This study contributes to adding knowledge to the existing body of knowledge on procurement planning as an imperative activity in public procurement in Tanzania.

Contribution of procurement capacity of public agencies to attainment of procurement objectives in infrastructure procurement

“…However, the resources are more likely to be misappropriated in less formalised public organisations. The poor management of resources affects procuring entities in achieving their intended objectives (Changalima et al, 2020). Since the fundamental principles of a worthy procurement practice include accountability and consistency, which requires entities to engage contractors competitively through a fair process unless prevailing conditions require otherwise (Kakwezi and Nyeko, 2019), the absence of an internal mechanism that Procurement capacity of public agencies ensures conformance to national policy and legal frameworks for procurement may lead to corrective instead of preventive actions.…”

“…Guarnieri and Gomes (2019) iterated that in managing the procurement process there is always the tendency of the procurement function to move towards a strategic role within an organisation. There is therefore the need for public procurement entities to ensure that the mindsets of procurement practitioners are directed towards the strategic perspective of the procurement function (Changalima et al, 2020). In the view of Mrope (2018), this strategic role of procurement can only be attained when it is inculcated in the corporate strategic planning process and implementation at the same level as the other functional areas.…”

“…Procurement activities consume monetary resources of an organisation which has to be budgeted in advance to prepare realistic cost estimations. This notwithstanding, Changalima et al (2020) report that in practical sense there are procurement undertakings conducted without appropriate budgeting. Since unrealistic budgets affect the conduct of procurement activities (Agwot, 2016), procurement entities must ensure that what has been budget for truly reflect the estimated cost of procuring the items from the market.…”

Procurement professionals' perceptions of skills and attributes of procurement negotiators: a cross-sectional survey in Tanzania

“…Specifically, planning skills with β 5 0.68 and p < 0.001 indicate that a unit increase in planning skills improves overall negotiation skills by 0.68 unit. Generally, planning is essential for public procurement activities (Changalima et al, 2021;Panga et al, 2015). This finding implies that planning skills are crucial determinants of procurement negotiation skills.…”

Obtaining the best value for money through procurement planning: can procurement regulatory compliance intervene?

“…Value for money (VfM) in public procurement has been an area of research for decades (Mamiro, 2010;Morallos and Amekudzi, 2008) due to the important role of public procurement at the organizational, societal, and national levels (Changalima et al, 2021;Flynn, 2018). For example, public organizations can receive goods, works and services for day-to-day operations through public procurement.…”