Abstract:
This study was triggered by the fact that many institutions including public universities cost
a great deal of money as a result of ineffective procurement system. The ineffectiveness
might be the result of poor quality, delays, improper quantity and non-cost effective delivery
of goods or services. The aim of this study is to assess the effectiveness of JU procurement
system and to identify the challenging parameters associated with procurement system in JU.
The study focused on how much planning process, tendering process, contracting
performance, IT adoption, operating procedures and supplier’s commitment challenging the
JU’s procurement system. This objective was achieved through exploratory and conclusive
research design. The study used structured questionnaires and interviews as primary tools
for data collection with the support of field survey. A total of 72 respondents out of the
expected 93 respondents returned the survey instruments. The finding from descriptive
statistics indicates that the weak contracting performance, absence of IT adoption, absence
of operating guide lines and low suppliers commitments were the bottlenecks to set up
effective procurement system in JU. Even though the planning and tendering stages were not
the challenges, some of the specific determinants those are timely approval of procurement
plan to the colleges/institutes, publishing process of procurement in the website and local
newspapers, on time provision of procurement requirements to the procurement department,
verification of successful bidder's price to the market prices and advertisement in approved
media were challenged the JU’s procurement system. Furthermore multiple linear
regression result revealed that ICT adoption, operating procedure, contracting performance
stage and suppliers’ commitment in procurement process have a positive association and
statistically significant impact on effectiveness of JU’s procurement system. This study
recommends that Jimma University and Ministry of Education should enhance the
implementation of contracting performance stage, ICT adoption to procurement activity,
prepare procurement operating guide lines and follow its implementation, enhance
cooperation between procurement Department and suppliers
