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Abstract—The study investigated the influence of of UMI and vice versa. It was concluded that there is
procurement planning on procurement performance a close relationship between Procurement planning
in public sector entities by focusing on UMI. The and procurement performance of operations and
study was guided by the resource-based view (RBV) projects of public sector entities in Uganda. It was
theory. In Uganda most government Institutions such recommended that the PDU should always liaise with
as UMI have registered certain constraints in User Departments to ensure that they undertake a
procurement performance and this could be a result thorough needs assessment, the heads of departments
of inadequate procurement planning on a timely basis should always ensure that they involve their
as required by the PPDA Act 2003. The objectives of subordinates in procurement budgeting and that the
the study were: to find out the relationship between PDU should always avail the User Departments, with
procurement needs assessment and procurement the right procurement such as information PPDA
performance, to examine the relationship between procedures and guidelines on procurement planning
procurement budgeting and procurement and budgeting.
performance and to analyse the relationship between
information sharing and procurement performance at Key words: Procurement, Project, Planning,
UMI. The study used the cross-sectional research Procurement, Performance, Management, Operations.
design. The sample size comprised of 119
stakeholders and the response rate was 63%. The 1. Introduction
information got from the data collection instrument
was analysed by the researchers and the findings of The study aimed at establishing how Procurement
the study indicated that; there is a strong positive Planning affects procurement performance of the
relationship between Needs Assessment and operations and projects of public sector entities by
procurement performance of UMI which implies that focusing on Uganda Management Institute (UMI).
improved Needs Assessment leads to improved Handling an organization’s procurement is one
procurement performance of UMI and vice versa, thing and effectively managing it is quite another.
there is a weak positive relationship between Procurement processes have the power to save
Procurement Budgeting and procurement time and money while increasing organizational
performance of UMI which implies that improved compliance and so to effectively manage an
Procurement Budgeting leads to improved organization’s procurements, it’s necessary to
procurement performance of UMI and vice versa and have a thorough plan based on solid information
there is a weak positive relationship between [1]. That’s why the first stage of the procurement
Information sharing and procurement performance cycle is developing a procurement plan, which
of UMI which implies that improved Information determines a timeline of what items will be
sharing leads to improved procurement performance procured and when based on the department's
______________________________________________________________
International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
budget [2]. Before devising a procurement plan, it many countries’ budget expenditure on their
is vital for the buyer to have a strong organizational operations and projects to provide
understanding of the market dynamics of the services to their citizens can be to a tune of more
industry they are looking to procure resources than US$9.5 trillion per year since it is normally
from [3]. Procurement planning is the process used to develop both physical and social
used by organizations to plan procurement activity infrastructure in various sectors such as transport,
for a specific period of time [4]. The Procurement education, health, agriculture, energy and security
Plan can be developed for a particular operational [13]. Over the past few years, developing
or specific project requirement or for a number of countries especially those in Sub-Saharan Africa
requirements for one or many entities in the public have been awakened on the importance of efficient
or private sector organizations [5]. and effective management of the procurement
process at all levels in Government Ministries,
Procurement planning will identify and define Departments and Agencies and its subsequent
realistic product expectations, such as fulfillment contribution to smoothly execute operations and
time, cost, and quality of products [6]. The projects of such public sector entities. In a
contribution of procurement planning is perceived developing country like Uganda, procurement and
in terms of quality, timely delivery, cost and disposal planning are fundamental to proper
flexibility, which has an impact on the competitive procurement management [13].
capability of the firm to meet customer
requirements [7]. The preparation of a realistic This is commonly completed during the budgeting
procurement plan for an organizational operations process. This study was guided by the resource-
and projects is critical for its successful based view (RBV) theory. In this regard, Uganda
monitoring and implementation [8]. There is Management Institute with the core mandate of
therefore need for procurement planning based conducting training and capacity building,
on a quantity flexibility contract under a mixture consultancy and research need to plan for the
of uncertain data. The Procurement Plan is based acquisition of the necessary resources required to to
on the Procurement strategy and sets out the execute her routine operations and projects in order
selection methods to be followed by the public to achieve her intended objectives [14]. In regard to
sector organizations [9]. Procurement planning the study, absence or poor procurement planning is
also permits the creation of a procurement likely to jeopardize procurement function and the
strategy for procuring each organizational Uganda Management Institute may find it
operational and project requirement that will be extremely hard to set targets or deliverables against
included in the procurement plan [10]. Public which to measure progress of procurement
sector entities should therefore take a flexible performance in any a given financial year. Under
approach to develop a procurement plan by the PPDA 2003 established structures, all public
applying tools and techniques widely used institutions are supposed to adhere to certain
across public sector organizations to provide the procurement policies and procedures. UMI was
necessary intelligence to make sound originally an Institute of Public Administration but
procurement decisions for their operations and now it’s a management development institute.
projects [11]. Therefore, as a public institution, UMI is a
Procurement and Disposal Entity that is required to
Procurement Planning is important because it conduct and manage the procurement function in
allows planners to determine if expectations are line with PPDA Act 2003 and the current
realistic; particularly the expectations of the amendment acts of 2014 and 2021. In view of the
requesting entities, which usually expect their above, the UMI procurement and disposal
requirements met on short notice and over a compliance audit report findings of the financial
shorter period than what the application of the years of 2010/11, 2011/12 and 2012/13
corresponding procurement method allows [5]. continuously revealed that some User Departments
Originally, most procurement experts used to look were not conducting procurement planning in
at cost effectiveness as the main dependable terms of undertaking thorough procurement needs
means of measuring procurement performance for assessment, procurement budgeting and sharing
operations and projects of any organization but information regarding procurement planning on a
now there are other means of measuring timely basis as required by the PPDA Act 2003
procurement performance such as cycle time, [15] [16] [17].
vendor performance, spend under management
and percentage of punch out catalogues [12]. Besides, adhering to such procurement plans by the
Public procurement is an important and critical Institute in acquiring the required goods, services
aspect of providing essential services to the and works is sometimes wanting. As a
citizens for both developed and developing consequence, the procurement performance in
countries based on good governance. Globally, terms of procuring high quality supplies, timely
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
delivery of supplies and ensuring high internal must follow procurement planning requirements
customer satisfaction fall below average as [6].
exemplified by the user departments’ failure to
have the work plans in place that Procurement and The procurement plan should be elaborated in
Disposal Unit would have used to draw up a coordination with the overall organizational
consolidated procurement plan [18]. Although, operational and project implementation plans and
there has been an improvement in this area, a lot manuals during the early stages of the execution of
more needs to be done. Therefore, if this trend of such organizational operations and projects [11].
events is not checked against, UMI is likely to Procurement planning acts as a guiding pillar for
experience over all poor procurement performance any procurement team, keeping them on track to
which will subsequently affect its day-to-day meet deadlines and from overspending in any way.
operations and execution of its projects aimed at If done effectively, there can be many benefits of
providing high quality service to the public [18]. It procurement planning [2]. Organizations should
was for this reason therefore that a study was therefore take a flexible approach to developing a
conducted to analyze the relationship of procurement plan through applying tools and
procurement planning and procurement techniques widely used across public sector
performance of operations and projects in public organizations to provide the necessary intelligence
sector entities. The objectives of the study were to to make sound procurement decisions [11]. A
find out the relationship between needs assessment Procurement plan based on Procurement Strategy
and procurement performance of UMI, to establish provides adequate justification for the selection
the relationship between budgeting and methods to use in acquiring goods, services and
procurement performance of UMI and to analyze works for execution of organizational operations
the relationship between information sharing and and projects [9]. It is important to identify the
procurement performance of UMI. ‘need’ and not the ‘want’, ensuring a clear
understanding and have agreement for the context
2. Theoretical Literature and all team members need to be on the same page
with regard to the motivations behind developing
the procurement plan to ensure all relevant parties
The study was guided by the resource-based view are properly engaged with the organisational
the firm. The resource-based view has emerged as operations and projects [3]. From the number of
one of several important explanations of persistent requirements on the procurement plan,
firm performance differences in the field of the procuring entity can determine beforehand any
strategic management. The resource-based theory is need for additional resources, including external
an economic and management tool used to assistance for the purpose of completing all
determine the strategic resources available to the procurement requirements listed on the
organization. The underlying principle of the procurement plan [5].
resource-based view is that sustained competitive
advantage is generated by the unique bundle of The involvement of user departments in developing
resources at the organization’s disposal [19]. specification, planning for the resources to be
Within public sector entities, such resources can be procured and evaluation of bids has got a profound
procured through use of the procurement plan to effect on the procurement activities for
execute their operations and projects. Procurement organizational operations and projects that are
activities, aim at anticipating requirements, supposed to be effectively performed [20]. This is
sourcing and obtaining supplies, moving supplies because user departments are one of the critical
into the organization, and monitoring the status of success factors that one need to always consider
supplies as a current asset [7]. According to [4], when procuring resources required to execute
procurement planning is the process by which the organizational operations and projects [21] The
organizational requirements and how to obtain execution of the operations and projects of most
them are determined. An adequate procurement public sector organizations is now changing since
plan will identify and define realistic product they are now operating in a very competitive,
expectations, such as fulfillment time, cost, and stormy and turbulent business environment and so
quality of products [10]. A procurement plan helps such public sector agencies are now making some
define the requirements for organizational adjustments internally and externally in terms of
operations and projects, in addition to effectively their systems, policies, structures, processes,
manage the steps required to get to the final cultures and resources so as to stay afloat and to
contract [1]. During the procurement planning compete favorably in the global market through
process, the procurement method is assigned and using better supply management strategies through
the expectations for fulfillment of procurement effective procurement planning [22]. Due to the
requirements determined [5]. In order to implement colossal amount of money involved in the public
a successful procurement system, an organization procurement and the fact that such money comes
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
from the citizens, there is need for accountability they have to play an important role of needs
and transparency based on effective planning for assessment as a basis for effective procurement
procurement performance of organizational planning if better organizational performance in
operations and projects [7]. Procurement planning terms of execution of her operations and projects
takes all stages of procurement inventory into is to be realized [27]. Improved performance of
consideration. Successful operational and project organizational operations and projects can also be
management maintains efficiency within the supply based on procurement work planning using
chain and can create a supplier-distributer existing budgets.
partnership that streamlines future procurement
projects [6]. Procurement planning comprises Public procurement and Disposal of Public Assets
identifying and assessing needs, undertaking a Amendment Act [28] demands user departments
detailed sector level market analysis to obtain an to prepare annual work plans for procurement
accurate picture of the nature of service providers, based on the approved annual budgets, which is
determining the expenditure categories for goods, submitted to the Procurement and Disposal Unit
works and services, deciding on the criteria for (PDU) for developing a consolidated overall
efficient contract packaging and establishing the procurement plan for organizational operations
contract packages and lots [8]. The advantages of and projects which implies that procurement plans
procurement planning affect the upcoming actions need be integrated into annual operational and
of the department as well as those in the near and project budget expenditure frame work. It is
far future, making planning an essential part of the considered more expensive and extravagant to
procurement process [2]. The complexity, risk, and procure items in an organization without a
value of the organizational operations and projects procurement plan and therefore many public
and their corresponding procurement contracts will sector agencies must abide by the PPDA which is
drive the level of research and analysis undertaken an oversight authority and her related rules and
to ensure the procurement approaches including regulations to improve on budget performance
procurement planning are proportional and [29]. Furthermore, the procurement plans are
relevant. prepared as part of the annual budget preparation
process as they are necessary to update cash flow
Needs Identification is an element of the initial preparation and it is an integral part of the budget
processes in procurement cycle. The first step in process. Therefore, it is crucial to appropriately
procurement process is to identify and fully define plan multiyear procurements and integrate them
the need in relation to the operational and project into the medium-term budgetary framework [29].
activities [22]. When an organization has got Previously, the procurement and disposal units
clearly specified procurement procedure with well (PDU) were usually not part of the organizational
visualized needs, she can easily develop vivid stakeholders that were taking part in the process of
strategy for meeting the needs of all her user making budgets because the PDU’s responsibility
departments which acts as a basis for undertaking was looked at to be more of acquisition of goods,
better forecasts, determining costs and generating services and works for organizational operations
information for future revenue streams as far as and projects [30]. Never the less, the current
her operations and projects are concerned [23]. If trends indicate that PDU is now always being
the organizational needs are over estimated or involved in developing budgets for organizational
under estimated, it will lead to an unrealistic operations and projects simply because such
procurement plan and budget and so a number of organisational operational and project budgets
problems in the procurement process are likely to provide a basis for developing procurement plans
arise [24]. When an organization fails to [30].
manage the various processes involved in
procurement including the needs assessment A good operational and project procurement plan
for the resources required to execute her of any organization needs annual work plans and
operations and projects usually leads to bad budgets to be developed and well aligned to the
consequences on her overall procurement results chain when executing such organizational
performance [25]. A well conduced needs operations and projects. Experience indicates that
assessment usually focuses on the effect of the using budgets to develop procurement plans for
likely risks involved in acquisition of the organizational operations and projects greatly leads
resources required to execute the organizational to improved procurement performance in terms of
operations and projects on performance of user timelines, cost effectiveness, quality, efficiency and
departments that utilize such resources [26]. For customer satisfaction of such organizational
the user departments to design specifications for operations and projects which increases chances of
supply of goods, develop terms of references for realizing the intended objectives in the best way
service delivery and develop scope of works in possible. Therefore, procurement plans need to
terms of bills of quantities for the required works, always be developed based on existing
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
organizational operations and project’s work plan strategic products without which execution of
and budget [31]. If the organization fails to follow organizational operations and projects can always
the right procedure when developing procurement be interrupted from time to time [36].
plans based on existing budgets usually leads to
poor procurement performance of her operations 3. Methods and approaches
and projects. Preparing procurement plans based on
organizational operational and project budgets will The researchers used a cross sectional research
ensure improved procurement performance in design based on quantitative approach to find out
terms of cost effectiveness, efficiency, timeliness, the relationship between Procurement planning and
quality and overall customer satisfaction [32]. It is procurement performance [37]. In this case, the
therefore imperative that public sector quantitative approach focused on descriptive and
organizations always need to link procurement inferential statistics [38]. The study population
plans to budgets as a fundamental priority if their consisted of 140 staff of Uganda management
operations and projects are to be executed in an Institute. The total sample size of 119 staff was
efficient and effective manner in order to meet the identified and determined using statistical tables of
expectations of all stakeholders [33]. The public Krejcie and Morgan [39]. The study used simple
sector agencies must always focus on using the best random sampling. Data was collected using self-
strategies to undertake effective procurement administered questionnaires [40]. Quantitative data
planning based on existing budgets for analysis was done using descriptive statistics and
organizational operations and projects to improve inferential statistics. Descriptive statistics included
their procurement performance in terms of measures of central tendency and measures of
efficiency, effectiveness, timeliness, cost and variability about the average. Inferential statistics
quality so as to meet the needs of all her helped in undertaking correlation analysis. The
procurement stakeholders [34]. SPSS was used to generate descriptive and
correlation statistics [41].
Using procurement plans to promote information
sharing among key organizational procurement 4. Results of the study
stakeholders on what is needed to execute
organizational operations and projects in a more 4.1 Empirical results from descriptive statistics
effective and efficient manner can drastically lead and correlation analysis.
to improved mechanisms by which public sector
agencies transact procurement business with their 4.1.1 Results for descriptive statistics on needs
supplies, vendors, service providers and contractors assessment and procurement performance
especially in this era of outsourcing using different
global networks. Using procurement plans to In order to understand the attitudes and perceptions
provide the right information to such supplies, of the respondents on needs assessment, so as to
vendors, service providers and contractors find out whether there is a relationship between
regarding what to procure, when to procure, how to needs assessment and procurement performance of
procure, at what cost to procure and for whom to UMI, respondents were asked to reveal their views
procure, public sector agencies can ensure towards needs assessment in relation to
improved procurement performance of their procurement performance of UMI based on the 5
operations and projects in terms of timely product Likert type scale of SA-strongly Agreed, A-Agree,
and service delivery, supply of high quality NS-Not sure, D-disagree and SD-strongly
products and services, reduced operational costs, disagreed. The elicited responses from of thirteen
optimality in resource allocation and utilization and statements were summarized in table 1 below
high customer satisfaction[35]. Organizations can
use procurement plans to share information with
Table 1: Descriptive statistics on needs assessment
vendors of the various goods, services and works
needed to execute organisational operations and and procurement performance
projects in an effective and efficient manner. Such
information sharing of the organizational Needs SA A NS D SD
requirements based on the procurement plan needs assessment and
procurement
a feasible strategy that will ensure that the right performance
information can be shared well among the different
organizational procurement stakeholders using Involving me in 66.7 28.0 2.7 1.3 1.3
effective communication channels. Sometimes, needs assessment
organizations choose to share information of their gives me an
opportunity to
requirements based on the procurement plans in a select the right
selective manner with a few suppliers, vendors and resources I need
service providers of certain critical, core and to do my work
well in the
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
Table 2: Correlation matrix for needs assessment Table 3: Descriptive statistics for procurement
and procurement performance of UMI budgeting and procurement performance
Table 3 shows that the majority of the respondents Table 4 above shows that there is a weak positive
were in agreement on all the eight statements used relationship between Procurement Budgeting and
to measure procurement budgeting; with 66.7% in procurement performance of UMI, (r=0.239,
agreement that approving the proposed budget by p=0.050, N=75). The relationship is statistically
UMI management avails funds for procuring the significant at 95% confidence level (2-tailed) since
right products, 22.7% were not sure and 10.6% p-value<=0.050. This implies that improved
disagreed. 72.2% were in agreement that budgeted Procurement Budgeting leads to improved
funds are usually released on time to execute procurement performance of UMI. Similarly,
procurement activities, 20.8% were not sure and declined Procurement Budgeting leads to declined
7.0% were in disagreement.74.6% were in procurement performance of UMI. From all the
agreement that budgeted funds are usually available above, it can therefore be analysed that the research
to procure the required resources according to plan, findings established a weak positive relationship
16.0% were not sure 9.3% disagreed. 65.2% were between Procurement Budgeting and procurement
in agreement that budgeted funds are usually performance of UMI. The findings were
enough to procure the needed items as planned, statistically significant, therefore the hypothesis
26.4% were not sure and 8.4 disagreed. An that was stated that: There is a positive significant
additional 79.7% were in agreement that the relationship between procurement budgeting and
approved budget enables them to develop and procurement performance was accepted.
submit the Procurement plans to the Procurement
and disposal unit on time, 17.6% were not sure and 4.1.5 Results for descriptive statistics on
2.7% disagreed. While 52.0% were in agreement information sharing and procurement performance
that Budgeted funds in the UMI are most times
received late, 34.7% were not sure and 13.4% were In order to understand the attitudes and perceptions
in disagreement. 90.6% were in agreement that of the respondents on information sharing, so as to
proper procurement planning is a foundation of analyse whether there is a relationship between
successful budget implementation, while 8.1% did information sharing and procurement performance
not agree. 89.4% were in agreement that effective of UMI, respondents were asked to reveal their
procurement planning is a necessary step to views towards information sharing in relation to
enhancing budget transparency in UMI and 10.7% procurement performance of UMI based on the 5
did not agree. Likert type scale of SA-strongly Agreed, A-Agree,
NS-Not sure, D-disagree and SD-strongly
4.1.4 Correlation results for budgeting and disagreed. The elicited responses from of nine
procurement performance at UMI statements were summarized in table 5 below.
The researcher proceeded to statistically find out Table 5: descriptive statistics on information
whether there was a relationship between
sharing and procurement performance
procurement budgeting and procurement
performance of UMI. The relationship between Statements SA A NS D SD
procurement budgeting and procurement measuring
performance of UMI was tested at a 95% level of information
significance (two-tailed) using Pearson’s product- sharing and
procurement
moment correlation coefficient, which measured its
performance
degree and direction at UMI. This means that the Head of 11.0 42.5 28.8 6.8 11.0
significance of correlation coefficients was tested Departments
using a p-value of 0.025 since they are two-tailed provide
as in the table below. information to
their staff on
how to prepare
Table 4: Correlation matrix for procurement timely
budgeting and procurement performance at UMI requisitions
PDU always 20.0 54.7 16.0 6.7 2.7
Procurement Procurement remind the user
Study Variables departments to
Budgeting Performance
Procurement Pearson 1 .239* send their
Budgeting Correlation requisitions on
Sig. (2-tailed) .050 time
N 75 75 User 9.3 42.7 34.7 10.7 2.7
Procurement Pearson .239* 1 Departments are
Performance Correlation usually offered
Sig. (2-tailed) .050 the right
N 75 75 procurement
Source: Primary data guidelines by
*. Correlation is significant at the 0.05 level (2- Procurement and
Disposal Unit
tailed).
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Int. J Sup. Chain. Mgmt Vol. 10, No. 6, December 2021
Sharing 30.7 50.7 16.0 2.7 0.0 supplier/buyer relationship, 16.0% were not sure
information and 2.7% did not agree. 87.7% were in agreement
pertaining to
bidding that keeping good procurement records by PDU
procedures by provides a point of reference for the user
PDU enhances a departments to develop lessons learnt when
good planning for future needs, while 12.3% were not
supplier/buyer
relationship sure. In addition, 58.6% were in agreement that all
Keeping good 46.6 41.1 12.3 0.0 0.0 procurement requirements are conducted in line
procurement with the PPDA Act and Regulations 2003, 34.7%
records by PDU were not sure and 6.6% were not in agreement.
provides a point
of reference for Whereas 79.7% were in agreement that following
the user the right procurement processes, policies and
departments to procedures usually reduces suppliers’ and
develop lessons customers’ complaints, 17.6% were not sure and
learnt when
planning for 2.7% disagreed. 52.8% were in agreement that
future needs some procurements are conducted outside the
All procurement 25.3 33.3 34.7 5.3 1.3 procurement plan which leads to acquisition of
requirements are poor-quality products, 36.1% were not sure and
conducted in line
with the PPDA
11.2% did not agree. However, there were mixed
Act and reactions on whether Procurement and Disposal
Regulations Unit makes reports timely to PPDA Authority, with
2003 37.8% in agreement, while 47.3% were not sure
Following the 39.2 40.5 17.6 2.7 0.0
right
and 14.9% were in disagreement.
procurement
processes, 4.1.6 Correlation results for information sharing
policies and and procurement performance of UMI
procedures
usually reduces
suppliers’ and The researchers proceeded to statistically find out
customers’ whether there was a relationship between
complaints information sharing and procurement performance
Some 15.3 37.5 36.1 5.6 5.6 of UMI. The relationship between information
procurement are
conducted sharing and procurement performance of UMI was
outside the tested at a 95% level of significance (two-tailed)
procurement using Pearson’s product-moment correlation
plan which leads
coefficient, which measured its degree and
to acquisition of
poor quality direction at UMI. This means that the significance
products of correlation coefficients shall be tested using a p-
Procurement and 10.8 27.0 47.3 12.2 2.7 value of 0.050. The results are presented in the
Disposal Unit table below.
makes reports
timely to PPDA
Authority Table 6: Correlation matrix for information sharing
Source: Primary data and procurement performance of UMI
budgeting.
https://ippu.or.ug/2021/03/17/procurement-
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