ASSESEMENT OF PROCRUMENT PRACTICES AND ITS LINKAGE WITH OPERATIONAL PERFORMANCE: THE CASE OF ABAY BANK S.C

Abstract

Procurement is an important function of companies for several reasons such as to ensure continuity of supply of goods and services, reduces the ultimate cost of the goods and services and to attain the profitability of banks. Due to this it encompasses the whole process of acquiring property and/or services. Sound procurement policies and process are among the essential elements of good management practices. This research sought to asses procurement practice and its link with operational performance in Abay bank S.C. To achieve the objectives, the study adopted descriptive method of research since the study intended to describe the ongoing practice and conditions between procurement practice and operational performance of the bank. The target population was employees of Abay bank S.C. Total number of respondents in this study were 1,249. Primary data were gathered using structured questionnaires. Descriptive statistics was used to summarize the data. This included percentage, mean, standard deviation and frequencies. Tables and other figural presentations were appropriately used to present the data that were collected for ease understanding and analysis. Correlation analysis was used to identify the relationship between procurement practices and operational performance. A statistical package for social science version 23 was used for data analysis. From the study findings it was concluded that all procurement practices have a link with operational performance in Abay bank. Thus, the researcher recommended that the bank management should consolidate their efforts to persist the good procurement practices outcomes as a result of procurement planning, tendering process and ethical practices. Also the top management has to work to reduced delays in procurement process and to improve the quality of procured items periodically.