Assessment of the Effectiveness of JU Procurement System & its Challenges

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