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This study aimed at examining the challenges associated with international procurement in the private sectors; using a case of Aluminum Africa Limited (ALAF). Specifically, the study was to examine the international procurement strategies used by private sectors, to identify challenges facing private sectors in international procurement system, to examine the impact of the challenges associated with international procurement in the private sectors and to explore ways of minimizing challenges of international procurement in private sectors. The study employed a case study research design and involved the use of various data collection methods and tools such as questionnaires, interviews and document review. The study also used secondary data collection methods such as documentation of various reports concerning international procurement.
The study found out that bulky purchasing, networking with other firms, access to information on and establishing a process for quick buys and transport including fast tracking approvals were the international procurement strategies most used by the private company. While the challenges facing international procumbent of these companies were; top management interference, political interference, promoting transparency and integrity, inadequate skilled and/or informed procurement committee and inadequate technology. It was also found that the impact of the challenges of international procurement were; decrease of customers, depreciation of quality and quantity of the products and out stock of the products. And lastly, ways of minimizing these challenges of international procurement were identified and discussed to be establishment of a good supply chain management, improving information technology, ensuring transparency, government support by reducing taxes and other charges associated with purchasing from abroad. The study recommended that the Company should be provided with procurement units that are managed by quality personnel who have the requisite knowledge, training and competence in procurement. |
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