Abstract:
This research aimed at assessing the impact of strategic procurement on public organization performance using Arusha City Council (ACC) as a case study. The study had three specific objectives; the first was to examine the influence of strategic procurement on procurement execution, the second was to assess the influence of supplier base on organization performance, and the third objective was to examine the influence of supplier selection on organization performance. The researcher applied a case study research design, and samples were selected by using purposive sampling techniques, where by questionnaire were used as primary data collection method and documentary review and internet source were used as secondary data collection method. A sample of 79 respondents was purposively selected from different department and section at ACC. The analyzed data was then presented in tables and figures for interpretation. Factor analysis and multiple regression analysis were employed for data reduction and assessing relationship between independent and dependent variables. The study realized relationship between the procurement execution, strategic supplier base, and strategic supplier selection on public organization performance
The study findings revealed that the impact of strategic purchasing are contribute by the skilled workers, training and seminars to workers and suppliers, effective negotiation during materials purchasing, effective specification, strategically supplier selection, professionalism, and applicability of regulation in all the purchasing activities.
The study concluded that strategic procurement within an organization contributes as much to the success and performance of the organization operations. Researcher recommend that, seminars and training could be provided to the procurement personnel and users, online purchasing system should be established at ACC, effective negotiation should be well conducted during purchasing process, the kraljic approach could be used to specify the purchasing techniques, and all purchasing should be guided by the rules and regulation and should be free from any interference such as political interference.
