A Dissertation Submitted in Partial Fulfillment of the Requirements for Award
of the Master’s Degree of Procurement and Supply Chain Management (Msc.
PSCM) of Mzumbe University
One of the big challenge facing public sectors in most developing countries to day is
prevalent in exposure to procurement risk. The aim of the study was to access how
procurement risks are managed in public sector in Tanzania using NHC consistently as
a case study. Specifically, this study was conducted with four specific objectives; (i) to
identifying procurement risks along the procurement process at NHC, (ii) to assessing
the effect of procurement risks on procurement performance at NHC, to find out effect
of knowledge management on procurement performance at NHC and (iv) to identifying
the appropriate risk management strategies to address the challenges facing public
sector in mitigating procurement risks. Data collection for this study was through
questionnaires and interviews guide. SSP was used to analyze both descriptive and
inferential statistics. Inferential statistics involved use of Pearson Chi squire test and
least logic regression analysis.
Descriptive results of the study indicate a wide range of procurement risk in public
sector including; cost overrun (51.9%), unfair dealings with suppliers (44.7%);
difficulty in evaluation of some products/materials from suppliers (42.6%); recurring
selection of inappropriate methods (42.6%), none adherence to procurement schedule
(27.8%); purchasing inappropriate products/services (27.8%); inadequate response
from tenderers (27.8%) and cost underestimation by Suppliers (28.7%). The findings
also revealed that cost overruns, cost underestimation by suppliers, purchasing
inappropriate products/services and inadequate responses from tenderers were
statistically significantly associated with procurement performance at NHC (PV=
0.000). Appropriate evaluation of procurement products/materials and right
procurement cost as effective and effective procurement performance were
significantly associated with employee’s competency and skills. Staff training, risk
management policy, buyer-supplier relationship, and inter functional relationship and
communication among departments in the organization were identified as key
procurement risks management strategies. It was recommended that, public procuring
entity should ensured that all procurement practioners in supply chain are adequatly
trained on identification of risks in the supply chain.