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Author
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Manonga , McDonald Takudzwa
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Title
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The effect of supplier diversification on procurement cycle time at ministry of local government and public works.
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Abstract
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The study explored the effect of supplier diversification on procurement cycle time at the Ministry of Local Government and Public Works (MLGPW). The MLGPW in Zimbabwe is facing significant delays in its procurement cycle, leading to inefficiencies that adversely affect public service delivery. The annual report by PRAZ indicates that the average procurement cycle time within the ministry has increased by over 30% in the last five years, resulting in critical project delays and escalating costs. However, supplier diversification is a potential solution to reduce procurement cycle times, but current efforts to diversify the ministry's supplier base have encountered several challenges. While supplier diversification offers potential benefits, it remains unclear how it precisely affects the length of procurement cycles within government ministries. The study aimed to assess the current supplier diversification practices at MLGPW, evaluate their impact on procurement cycle time, and identify strategies to optimize these practices to reduce the procurement cycle. An explanatory research design was utilized, collecting data through structured questionnaires from a sample of 72 respondents, chosen by the use of stratified and simple random sampling. The data was analysed using both descriptive and inferential statistical methods. The study findings showed that The MLGPW utilizes various supplier diversification practices. Product and service diversification is highly valued and implemented, followed by geographical diversification and rotational sourcing. Moderately implemented practices include supplier size diversification, supplier base expansion, tiered contracting, and supplier ownership diversification, promoting diverse businesses. The study findings revealed that product and service diversification, with a significant negative estimate of -0.567, correlates with shorter cycle times at MLGPW. Rotational sourcing also significantly shortens cycle times, with an estimate of -0.678. Supplier base expansion shows a trend towards shorter cycle times, though not significantly. Conversely, tiered contracting is associated with longer cycle times, with a significant positive estimate of 0.789. Geographical diversification, supplier size diversification, and supplier ownership diversification do not show significant impacts. The study results indicated that leveraging technology, such as using e-procurement platforms, is viewed as the most effective strategy for improving procurement efficiency. Standardized procurement processes received strong agreement on their effectiveness. The study recommended that the MLGPW should continue to prioritize and expand its efforts in sourcing a wider variety of products and services from multiple suppliers.
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Date
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June 2024
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Publisher
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BUSE
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Keywords
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procurement cycle time ,supplier diversification
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Supervisor
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Mr Bindu
