Practitioners’ Perception on Use of E-procurement Practices towards Cost Saving in Public Procurement in Tanzania

Abstract

Increased cost in procurement has consequences which can affect an
organization and thus lead to inefficiency. The objective of this study was to
examine practitioners’ perceptions on use of e-procurement practices towards
cost saving in public procurement. The study employed explanatory sequential
mixed methods which involved both quantitative and qualitative data. Data were
collected from respondents by using a structured questionnaire involving a
sample size of 290 procurement practitioners who were selected by using simple
random sampling technique. In addition, five key informants were used to give
detailed information on clarification of quantitative data. Quantitative data were
analysed by using a Binary Regression Model to determine if there was
significant saving or no saving in cost under e-procurement practices while
qualitative data were analysed by using content analysis which presented data in
their natural setting based on themes and major concepts. The findings indicate
that three variables namely e-requisitioning, e-ordering and e-payment were
found statistically significant on enhancing cost saving under e-procurement
practices with p-values of 0.000; 0.048 and 0.001 respectively. Therefore, the
study concluded that the use of e-procurement practices enhances cost saving in
areas of requisitioning, ordering and payments. The study recommends that
policy makers should develop better policies on e-procurement that focuses on
cost reduction, and public entities should establish cost control programmes with
aid of e-procurement technology which keeps an eye on costs incurred to improve
efficiency in procurement.