Challenges and Opportunities of Procurement Practices: The Case of Gondar Malt Factory, Gondar

Abstract

The objective of this study was to assess the challenges and opportunities of procurement practices at Gondar Malt Factory. Using quantitative research approach; specifically, descriptive research design, a total of 150(male=102 female=48) participants involved in the study through stratified random sampling technique to provide the quantitative data whereas, 5 key informants involved in the study through purposive sampling technique to provide qualitative data. Quantitative data were collected using pretested structured questionnaire whereas; qualitative data were collected by using semi-structured interview guide. The quantitative data were analyzed using SPSS version 20. Specifically, frequency, percentage, Mean and Standard Deviation were employed. On the other hand, the qualitative data were analyzed thematically Findings show that procurement planning was properly practiced in the procurement process of the Gondar Malt Factory but, procurement contracting, procurement controlling, efficiency and transparency were not properly practiced in the procurement process. Failure to prioritize procurement needs, failure to clearly indicate specifications, absence of market data, weak institutional and professional capacity, weak commitment for professional conduct, inadequate system to prevent fraud and corruption, and absence of well researched framework to guide purchasing decisions were the internal challenges that affect procurement practice at Gondar Malt Factory. Whereas, difficulty in applying national polices, laws and regulations, absence of procedures for settlement of contractual disputes, absence of rules for bidders’ suspension and failure of suppliers to deliver goods and services as per contractual agreement were external challenges that affect procurement practice. On the other hand, findings show that existence of national polices, laws and regulations, the application of ICT, the existence of centralized procurement, the existence of many suppliers of goods and services, the provision of Logistics and Supply Chain Management as field of study, formulation and implementation of anti corruption laws and the expansion of various infrastructures were opportunities of the procurement practice in the study area. Finally, the top management of Gondar Malt Factory is recommended to exert maximum effort to properly administer procurement contracts, use better controlling mechanisms and ensure efficiency and transparency in the procurement process