| Abstract: | The purpose of this study was to assess the procurement process and identify major challenges in Commercial Bank of Ethiopia. The issues studied include identify the merits and drawbacks of the purchasing policy, guidelines and manual, examining the steps involved in the purchasing process and assess their importance and related challenges and make viable recommendations to improve the purchasing management. To this end, the researcher has collected data from primary sources using questionnaire, interview and personal observations; and referred secondary sources including the purchasing manuals and other documents related to purchasing in Commercial Bank of Ethiopia. The major findings of the study are lengthy process of purchasing with long approval period by different committees, late delivery of goods and poor quality of goods purchased. Based on these findings, the researcher recommended that the procurement unit of CBE shall sort out frequently requested items and handle them separately; the purchasing unit establish long term mutually benefiting relationship with reliable suppliers since this will reduce suppliers cheating problem, to a certain extent tackle low quality purchases, delayed deliveries and minimize the purchasing quantity approval period, establishing systematic ways of expediting and follow up of the purchasing process. To enhance feasible and efficient procurement process which save time and resource substantially. |
