Assessment of Procurement Performance and Its Link with Operational Efficiency in Case of Ethiopian Electric Utility

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Date

2016-05

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Addis Ababa University

Abstract

Procurement largely contributes to spending of the public funds, thus the procurement process must be highly monitored on how the procurement process are administrated to ensure efficiency and effectiveness. This research sought to Asses procurement performance and its link with operational efficiency in Ethiopian Electric utility. The study mainly focused factors affecting procurement performance and operational efficiency and relationship between procurement performance and operational efficiency in Ethiopian Electric utility. The study adopted Explanatory method of research since the study intended to explain cause and effect relationship between procurement performance and operational efficiency in Ethiopian Electric utility. The target population was employees of EEU. Total number of respondents in this study was 42. Primary data was gathered using structured questionnaires. Descriptive statistics was used to summarize the data. This included percentage and frequencies. Tables and other figural presentations were appropriately used to present the data that was collected for ease understanding and analysis. Correlation analysis was used to identify the relationship between procurement performance and operational efficiency. A statistical package for social science version 20 was used for data analysis.From the study findings it was concluded that procurement performance have a link with operational efficiency in Ethiopian electric utility thus the researcher recommended that the organization management should give attention to procurement planning to reduce delays in procurement process, give training for procurement unit, audit and other stakeholders about the process of procurement to enhance accountability and transparency. The organization should also work with reliable supplier whose delivery schedule are realistic and within the organization requirements Key words Prcurement perfomance and operational efficiency

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Keywords

Procurement Performance and Operational efficiency

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