CHINHOYI UNIVERSITY OF TECHNOLOGY
SCHOOL OF ENTREPRENUERSHIP AND BUSINESS SCIENCES
PROGRAMME: SUPPLY CHAIN MANAGEMENT
LECTURER: MRS CHIMUKA
MODULE: PRINCIPLES OF PROCUREMENT
LEVEL: 1.1
ASSIGNMENT: 1
SURNAME FIRST NAME REG NUMBER
1 KANGAUSARU YOLANDA C24160163U
2 CHIWUMBU RODDICK C24159765F
3 MSIPA SHELTER C24159609S
4 JAMBA RENEE C24161029R
5 NYAMAGOROMONDO JULIET C24159613E
6 MANYAIRA RUMBIDZAI C24161264L
7 ZUZE MASCLYN C24159060H
8 MUSHUMA TAKUDZWA A C24159912C
9 MUBVUMBA LORRAINE R C24161055B
10 WARIKANDWA REBECCA C24159996K
QUESTION: Explain how effective procurement management skills could contribute
to successful project outcomes in our country?
Procurement management is a strategic and systematic approach to acquiring goods,
service, and works that meets an organization’s needs while optimizing value, quality,
and risk management .Effective procurement is crucial for achieving successful
project outcomes, particularly in Zimbabwe where resources are
paramount(important) .Strong procurement skills can contribute to project success
through; cost effective and budget management ,quality assurance ,better risk
management or mitigation ,increased stakeholder satisfaction ,improved project
timeliness (timely delivery of resources), and strategic alignment.
Cost Effective and Budget Management
Cost effective and budget management is a significant effective procurement
management skill which helps in the success of a project by negotiating better prices
and terms with suppliers, which can significantly reduce project costs as defined by
this author Kini, D. U. (1999).This is common in countries like Zimbabwe, where
economic challenges are prevalent ,managing budgets effectively is essential. By
ensuring that procurement processes are transparent and competitive, organizations
can minimize waste and maximize the value of every dollar spent, which is vital for
project sustainability and better investment decisions. For example Delta Beverage
procurement department is now working hand in hand with local sorghum farmers
near the plant to reduce transport cost, negotiate reasonable prices and stabilizing long
term relationships which ensure continuity. By doing this they have optimized their
supply chain, they reduce operation costs which directly impacts profit margins and
profit viability.
Quality assurance
Quality assurance is another effective procurement management skill which is vital
for the success of a [Link], D. (2019) stated that quality assurance involves the
systematic process and procedures used to ensure that purchased goods, services, or
works meet the required standards, specifications, and regulatory requirements This is
particularly important in Zimbabwe, where the quality of materials can significantly
impact project outcomes. By establishing clear criteria for supplier selection thorough
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evaluations, organizations can ensure that they receive high-quality products, which
leads to better project performance and outcomes. A couple of techniques used to
ensure quality assurance the likes of Just In Time, Continuous improvement, Total
Quality Management practice (TQM). An example of a company that emphasizes
quality assurance is of Sino-Zimbabwe Cement Company which focuses on sourcing
high quality raw materials, by maintaining stringent procurement standards which can
be marketable and qualifies international quality standards and improve customer base
and brand awareness. Another example is of Econet, one of the largest
telecommunications companies in Zimbabwe, has adopted effective procurement
management strategies by leveraging technology to streamline the procurement
process. They focus on sustainable procurement practices and regularly assess
supplier performance to ensure quality service. Their e-procurement system has
improved transparency and reduced procurement cycle times.
Better Risk Management/Mitigation
Kähkönen, A. et. al (2018) defined Risk Management/Mitigation as one of the main
effective procurement skills that significantly contribute to the overall success of a
project. It involves the identification, assessment, and prioritization of potential risks
associated with purchasing goods, services, or works, and implementing strategies to
eliminate their impact. In Zimbabwe, where political and economic instability can
affect supply chains, having robust procurement strategies which can safeguard
projects against unforeseen challenges. This includes diversifying suppliers and
maintaining good relationships with them to ensure continuity in supply. In
Kuwadzana Housing Project utilizes effective procurement practices to assess and
mitigate risks associated with suppliers. By diversifying their supply base and having
strong supplier relations, they are less vulnerable to supply chain disruptions. Another
example is of National Foods, a leading manufacturer in Zimbabwe’s food industry,
has integrated strategic procurement into its operations. They focus on value creation
through strong supplier relationships and stringent quality controls. Their procurement
practices ensure they meet the demand for raw materials at the right cost and within
minimum supply chain disruption. Organizations such as Hwange Colliery and ZPC
(Zimbabwe Power Company (ZESA)) focus on risk mitigation strategies, ensuring
continuity in supply chains and managing cost fluctuation.
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Improved Project Timeliness
Nyoni, T., & Bonga, W. G. (2017) defined improved Project Timeliness as another
effective procurement skill that is vital in the overall success of a project in Zimbabwe
.Timely procurement of resources is essential for keeping projects on
schedule .Effective procurement management ensures that materials and services are
delivered at the right place at the right time when it is needed, preventing delays that
can arise from poor planning or supplier issues. In Zimbabwe, where project
timeliness can be critical for success, efficient procurement can significantly enhance
project delivery and improve project success. An example of this in Zimbabwe is of
Zimplats,leading platinum mining company ,emphasizes timely procurement
processes that ensure that needed materials and equipment are readily available for
use when needed. This reduces project delays, enhances productivity, and improves
overall timeline of the project.
Increased stakeholder satisfaction and Strategic alignment
Increased stakeholder satisfaction and strategic alignment enhances trust. Satisfied
stakeholders are more likely to engage positively by fostering a collaborative
environment. As a result this improves communication and there would be a open
channel of communication which lead to quicker problem resolution and better
alignment on project goals. When stakeholders are satisfied, they are more willing to
allocate resources, whether financial or human, to support the project as elaborated by
an author named Turner, R., & Zolin, R. (2012)..
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Reference List
Bitew, D. (2019). Assessment of Quality management practices in construction
projects: the case of AACRA.
Kähkönen, A. K., Lintukangas, K., Hallikas, J., & Ojala, M. (2018). The impact of
total costs and strategic supply on risk management in project business. International
Journal of Procurement Management, 11(2), 153-171.
Kini, D. U. (1999). Materials management: The key to successful project
management. Journal of management in engineering, 15(1), 30-34.
Nyoni, T., & Bonga, W. G. (2017). A theoretical harmonization of critical success
factors (CSFs) in the construction sector in Zimbabwe: Introducing the 3P
model. Dynamic Research Journals' Journal of Economics & Finance (DRJ-
JEF), 2(4), 19-29.
Turner, R., & Zolin, R. (2012). Forecasting success on large projects: developing
reliable scales to predict multiple perspectives by multiple stakeholders over multiple
time frames. Project management journal, 43(5), 87-99.
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