Assessing the Influence of Strategic Procurement to the Performance of Urban Water Supply and Sanitation Authorities in Tanzania

Abstract

Various reports have disclosed public procurement as the most challenges to inefficiency in operations in the government sectors, although public procurement incurs up to 20 percent of country GDP it still considered as significant function to country’s development, many of the government and public sector present days adopting strategic procurement as a solution to organization cost reduction. Thus, this study intended to assess the influence of strategic procurement to Urban water Supply and Sanitation Authorities in Tanzania, a case study at Arusha Urban Water Supply and Sanitation Authority (AUWSA). The study had three specific objectives namely; to determine the influence of strategic procurement execution planning to performance of AUWSA, to determine the influence of strategic supplier relationship base to performance of AUWSA and to examine the influence of strategic supplier selection to performance of AUWSA. The study adopted descriptive research design whereby data was collected through surveyed questionnaire. Data was tested by using Cronbach’s Alpha and analyzed through correlation and regression techniques. The study revealed that, the strategic procurement has positive relation with the performance of Arusha Urban Water Supply and Sanitation Authority. Likewise, the study exposed capacity analysis, market analysis, adherence of Public Procurement Laws, adequacy communication with supplier, selection supplier with experience and financial capability are factors contributing to implementation of strategic procurement. Indeed, the study recommend to government facilitate public procurement entities to prepare organization strategic objectives, procuring entities to conduct market analysis quarterly, annual procurement plan to be prepared by involving all departments and aligned with organization strategic objectives and procurement professional to be measured by their contribution to achievement of organization objectives/ Key words: public procurement, strategic procurement and organization performance