Effect of Procurement Risk Management Practices on Supply Chain Performance in Public Sector in Tanzania

Abstract

The study aimed at examining the effect of Procurement risk management practices on supply chain performance in public sector in Tanzania using the Rural Water Supply and Sanitation Agency (RUWASA) as an example. There are limited literatures in Tanzania’s context and continued procurement risk encountered by public entities in Tanzania thus prompting the study to bridge the gap. The study was guided by the following specific objectives; to examine the effect of procurement risk identification practices on supply chain performance at the Rural Water Supply and Sanitation Agency, to examine the relationship between stakeholders’ involvement and supply chain performance at the Rural Water Supply and Sanitation Agency and finally to show the relationship between risk mitigation strategies and supply chain performance at the Rural Water Supply and Sanitation Agency. The study applied mixed approach to include both qualitative and quantitative approaches. This study adopted a cross-sectional research design. The sample size of the study was 191 employees and applied both probability and non-probability sampling procedures in selecting the study sample. The data generation methods that were used was the Self-Administered Questionnaires, documentary review and interview guides. Descriptive and inferential statistics with the aid of Social Sciences Statistical Package (SPSS) version 25 were used to analyse the collected quantitative data. The study findings revealed that risk identification practices had a positive statistically significant relationship with supply chain performance with the p-value (0.01) less than 0.05 (p<0.05) and the coefficient at 0.712. This implies that the unit change in supply chain performance on average increased supply chain performance by 71.2%. On the relationship between stakeholders’ involvement and supply chain performance at RUWASA, Stakeholders’ involvement was positively associated with supply chain performance at 0.790 which was significant with a p-value (0.000) less than 0.05 (p < 0.05). This implies that the unit increase in the level of Stakeholders’ involvement led to 79.0% decrease in the overall supply chain performance. On the relationship between risk mitigation strategies and supply chain performance at the RUWASA, the findings also showed that Risk mitigation strategies had a positive and significant relationship with supply chain performance with a co-efficient of .608 and p-value P=0.002, an implication that on average a unit increase in the level of Risk mitigation strategies results into a 60.8% increase in the supply chain performance. The study recommended that; The RUWASA should continuously carryout pre-screening of supplier’s Capacity so as to maintain proper supply chain performance in terms of; Procurement efficiency, Timeliness, Price accuracy and Supplier reliability. The government through public entities more so the RUWASA should ensure that Periodic Procurement Audits are carried out so as to ensure good supply chain performance in terms of; Procurement efficiency, Timeliness, Price accuracy and Supplier reliability. The RUWASA should ensure that Inventory Forecasting is properly carried out to ensure good supply chain performance in terms of; Procurement efficiency, Timeliness, Price accuracy and Supplier reliability.