Assessment Of Purchasing Practice Effectiveness In West Shoa Zone Public Sectors, Oromia National Regional State, Ethiopia

Abstract

This study was conducted in public sectors of west shoa zone regarding assessment of purchasing practice effectiveness. The purpose of these study is to investigate the implementation of right quality, right time, right price, right quantity, to examine effect of Internal control, to assess ethics in purchasing, market condition and Legal of purchasing effectiveness in West Shoa zone public sectors. Both descriptive and explanatory research design were employed with quantitative and qualitative research approach. The primary and secondary sources of data were collected from the selected sectors employees through questionnaire. From 1,005 employees of 29 public sectors only 286 sample size of respondents were selected by using simple random sampling technics. All of the quantitative data were arranged, edited, processed and finally analyzed by Statistical package for social science (SPSS) Version 26. To measure the relationship between dependent and independent variables multiple linear regression model was employed. The regression analysis indicates that except purchasing ethics and Legal framework, the remaining five independent variables have a positive and statistically significant relationship with purchasing effectiveness. On the other hand, the multiple regression analysis results demonstrate that all independent variables (staff competence, purchasing opportunities, five right questions, Internal control and Market conditions) have a positive and statistically significant effect on purchasing effectiveness at p< 0.05) while purchasing ethics and legal framework have negative significant on purchasing effectiveness at p< 0.05). It recommended that sectors should improve in guiding purchasing activities by annual purchasing plan, timely submitting Purchasing plan, appropriately preparing bid document, timely completing bid evaluation, applying good contract management, appropriately implementing purchasing principles, using open bidding as the preferred procedure of Public purchasing reduction in quality complaints, time delivery, conducting market survey to achieve right price, delivering the requested quantity, purchasing from the suppliers.