ASSESSMENT ON PRACTICE AND CHALLENGES OF PROCUREMENT CASE OF OVID CONSTRUCTION PLC

Abstract

Procurement has remained a key function of every organization whether private or public. All procurement process regardless of their complexity follows a laid down procedure that requires proper management to maintain the integrity and sanctity of the procurement process. The study sought to evaluate the procurement process and its operational performance of Ovid Construction PLC. Both quantitative and qualitative method approaches adopted and a structured questionnaire were used to collect data from 88 potential respondents and interview conducted with procurement team representatives. Using descriptive statistics, it was revealed that the organization procurement practices such as planning, sourcing, bidding; internal requisition and approval process and inspection of deliveries. It was discovered that electronic system is being utilized in the procurement process of the organization at a small extent. The procurement team strongly believed that automating or e-procurement system would lead to quality purchase, less time and costly. The study revealed that procurement process affect procurement performance. The study also revealed that challenges such as unnecessary bureaucracy, long lead time and delay in payment. It was realized that, the activities of the procurement process ensures performance in the organization as a whole, however, for an organization to attain operational efficiency in the procurement system such organization needs to adopt a system that minimizes redundancy, cost and wastage while leveraging the resources that contributes to success and utilizing the best of its technical knowhow, workforce, quality, cost and flexible business process. The study therefore recommended that the organization should review the existing procurement procedure to reduce bureaucracy to meet the organizational needs. Unnecessary Bureaucracy delays procurement efficiency and affects operational performance of organization; this review should be done so that organization will have some policies to streamline their operations.