ASSESSMENT OF PROCUREMENT PERFORMANCE OF A FACTORY: THE CASE OF ADDIS PHARMACEUTICAL FACTORY S.C

Abstract

The main purpose of the study was to assess the procurement performance at Addis Pharmaceutical Factory S.C. To achieve the stated objective, the procurement performance was assessed using compliance to procedure, right quantity purchase, right quality purchase, right time purchase and capability of the personnel. A descriptive research design was employed in the study. Primary data was collected by using questionnaires and interviews targeting employees in the selected functions of APF. The target population of interest for the study consists of 93 employee; and being the target population size manageable, a census survey was done and the study achieved 91% response rate; as eighty five (85) out of the 93 distributed questionnaires were filled and returned. The study findings revealed that performance of procurement with regard to ‘Right Quality Purchase’ and ‘Compliance to procedure’ were found satisfactory. Whereas, the performance of the function, with respect to ‘right time purchase and ‘right quantity purchase’ were found to be below the desired level; and specifically the practice of planning was rated to be one of the weakest area in the function, and the purchase lead time was also found to be very long. Though the capability of the procurement personnel was rated as average, specifically the focus to training and development was found to be minimal. Generally as per the grand mean value of the indicators, the overall performance of the procurement function were rated as moderate