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.