The Impact of procurement practices on cost reduction and profitability within Sanyati rural district council · Electronic Theses and Dissertations

Author

Everyson, Plaxedes

Title

The Impact of procurement practices on cost reduction and profitability within Sanyati rural district council

Abstract

The Sanyati Rural District Council (SRDC) was the target of this research, which sought to learn how their procurement policies affected their ability to cut costs and increase profits. Researchers used a combination of surveys and in-person interviews to compile their findings. Based on the results, it seems that most people think the SRDC's procurement tactics have helped them save money and make more money. The average score was 3.84 out of 5. According to the survey takers, the council was able to save money, run more efficiently, and perform better as a whole by using strategies including performance-based contracts, strategic sourcing, contract management, and vendor consolidation. It appears that respondents had different experiences and perspectives about the SRDC's sustainability initiatives in the procurement function, as they showed a more neutral attitude towards the council's attempts to incorporate green buying techniques. The research concluded that the SRDC ought to prioritize, the policy of consolidating vendors has been successful in reducing costs and increasing profitability; so, it should be prioritized and expanded. The company should Improve its strategic sourcing processes by working more closely with important suppliers, opening up more avenues of communication, and encouraging a growth mindset. The company should also evaluate and enhance its contract management procedures to make sure they keep helping to boost supplier performance, service quality, and customer happiness. In order to achieve its sustainability goals, the SRDC should also think about reinvigorating its strategy for green buying. The SRDC may continue to reduce costs and boost profitability by executing these suggestions, which will further enhance the effectiveness of its procurement methods.

Date

August 2024

Publisher

BUSE

Keywords

Procurement policies,

Cost reduction and profitability,

Customer happiness.

Supervisor

Mrs. Dube,