Effect of centralized procurement on operational efficiency in Zimbabwean parastatals, case of Zimbabwe Electricity Transmission and Distribution Company (ZETDC)
- Author
- Maposa, Blessing
- Title
-
Effect of centralized procurement on operational efficiency in Zimbabwean parastatals, case of Zimbabwe Electricity Transmission and Distribution
Company (ZETDC) - Abstract
- The study investigated the impact of centralized procurement on operational efficiency in Zimbabwean parastatals, specifically focusing on the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). ZETDC as a parasternal critical to national power infrastructure, faces persistent operational inefficiencies. These inefficiencies directly impact ZETDC's capacity to provide reliable power supply, hindering economic development and burdening Zimbabwean consumers. However, procurement processes play a significant role in these operational bottlenecks. ZETDC's historically decentralized procurement system has led to fragmentation, inconsistent practices, and lengthy procurement Delays in procuring essential equipment for maintenance and upgrades contribute to frequent power outages and service interruptions. Furthermore, a lack of transparency in procurement has fuelled allegations of corruption. A recent independent audit found that over 30% of supplier contracts in 2022 showed evidence of inflated pricing or suspected collusion, significantly draining ZETDC's resources. The objectives of the study included assessing the effect of centralized procurement on cost efficiency at ZETDC, determining its influence on time-related metrics, evaluating the quality implications, and assessing its impact on administrative efficiency at ZETDC. Data collection was conducted using structured questionnaires, with a sample size of 115 respondents selected through simple random and stratified sampling methods. The data was analysed using descriptive statistics and inferential analysis. The study finding indicated a statistically significant positive correlation (r=0.480, p < 0.01) between centralized procurement and cost efficiency aligns with previous research at ZETDC. The study outcome revealed a significant positive correlation (r = 0.431, p < 0.01) between centralized procurement and time-related metrics at ZETDC. The research showed a strong positive relationship found between centralized procurement and quality implications (r = 0.819, p < 0.01) at ZETDC. The study indicated that a strong positive relationship existed between centralized procurement and administrative efficiency at ZETDC (r = 0.609, p < 0.00), thus centralized procurement practices can streamline administrative processes and improve overall efficiency. The study recommended that organizations should invest in robust IT systems and data management tools to support centralized procurement processes. These technologies facilitate better monitoring, control, and analysis of procurement activities, enhancing both efficiency and effectiveness.
- Date
- June 2024
- Publisher
- BUSE
- Keywords
- centralized procurement
- parastatals
- Supervisor
- N/A
- Item sets
- Department of Accountancy
- Media
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MAPOSA BLESSING