The Role of Procurement Planning on Organizational Performance a Case Study of National Agricultural Research Organization (Naro)

Abstract

This study assessed the role of procurement planning on organizational performance. The specific objectives of the study were: to establish the contribution of determining the procurement needs on organizational performance, to investigate the role of timing of acquisition on organizational performance and to establish the impact of funding on organizational performance.

The study adopted the case study design with quantitative and qualitative research techniques. A total sample size of 44 respondents from NARO was used. Self-administered questionnaires and face to face interviews were used to collect data. Data was coded and later processed and analyzed.

From the study, it was revealed that the users were allowed to identify all needs of their units, the technical and functional specifications of the needs were clearly defined and the source of the item was determined whether from internal or external sources and preliminary cost benefits analysis was carried out for new procurement requirements. It was also revealed that the timeframe for procurement process was clearly determined and there was a tentative schedule drafted for purchasing the needs and that the lead times were estimated so as to enable proper procurement planning. The study further revealed that the budget estimates were approved to support the procurement and it was the accounting officer to ensure that financial provision is made in the budget estimates for the appropriate year to support the procurement during the subsequent years. All procurements were able to achieve value for money and through cost controlling the government or any organization is able to procure in a way that promotes value for money.

It is recommended that the organization’s management should employ skilled accounting officers who can strategically ensure that financial provision is made in the budget estimates for the appropriate year to support the procurement during the subsequent years. The organization’s management should consider cost controlling as an essential in the company due its advantages for example minimizing unintended expenses during procurement.

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