| Abstract: | Research on public procurement has gained significant attention in recent years, yet a notable
gap remains in understanding specific practices within Ethiopia. Procurement management
involves systematically planning, organizing, executing, directing, controlling, and evaluating
activities to achieve organizational objectives (Erdal, 2014). It encompasses more than
purchasing by involving requirement identification, supplier evaluation, source selection,
contract negotiation, delivery oversight, and payment management (Erdal, 2014).
Procurement, as defined by Monczka, Handfield, Giunipero, & Patterson, and van Weele
(2018), emphasizes timely delivery, quality, and cost-effectiveness in acquiring goods, services,
or works from external sources. This study investigates the Assessment on Procurement
Practices and Challenges in the Public Sector at the Ethiopian Agricultural Transformation
Institute. Effective supplier selection, robust buyer-supplier relationships, organizational
capacity, and ethical practices are posited to enhance performance. Using a descriptive
research design, primary data was collected via questionnaires from operational department
staff (response rate: 79%). Findings underscore the need for the Institute to refine supplier
selection, strengthen financial and risk assessments, fortify ethical standards in supplier
relationships, and improve monitoring. To optimize procurement, the Institute should
implement ERP systems, enhance internal controls, enable online procurement, and integrate
ERP with other systems. Employee adaptability to ERP, reducing manual processes, ethical
practices, transparency, fairness, and compliance are crucial. Recommendations include
improving supplier relationship management by establishing clear communication channels
and regular feedback loops with suppliers to ensure mutual understanding and cooperation,
developing and implementing procedures for timely and effective conflict resolution, enforcing
policies that ensure all procurement activities are conducted transparently and fairly,
encouraging the inclusion of a diverse range of suppliers to enhance competition and
innovation, and implementing strict policies and training programs to prevent and manage
conflicts of interest among procurement staff. By addressing these areas, the Ethiopian
Agricultural Transformation Institute can significantly enhance its procurement practices,
leading to improved organizational performance and better achievement of its strategic
objectives. |
