An Assessment on the Impact of Strategic Procurement Practices on Organisational Performance. A Case Study of CBZ Bank Zimbabwe.

This research sought to examine the impact of strategic procurement practices on firm performance at CBZ Bank. The objectives of the study included;

a)     a) to examine the effect of strategic cost management on firm performance,

b)     b) to assess the impact of supplier intergration on firm performance,

c)     c) to investigate the effect of early supplier involvement on firm performance

d)     d) to determine the impact of supplier relationship management on firm performance.

The study adopted a mixed research approach. The study collected both, primary and secondary data. The research instruments used to gather primary data were the questionnaires and interview guides. Secondary data was collected from procurement publications; journals, books, other internet sources and reports from the Supply Chain Council (SCC). The population of the study included 82 employees and management at CBZ Bank. The sampling technique employed was convenience sampling, a non-probability sampling technique. The data collected from the questionnairesa and interview guides was analysed through Microsoft Excel worksheets and Statistical Package for Social Science (SPSS) so as to come up with descriptive statistics which include frequencies, means and percentages. The relationship between strategic procurement practices and organizational performance was tested using the Pearson product-moment correlation co-efficient.A 2 tailed significant level of 10% and 5% was used. In addition, Cronbach’s Alpha was used to ensure reliability in the measurements provided in this study. The findings of the study showed that strategic cost management, supplier intergration, early supplier involvement and supplier relationship management had a positive relationship with firm performance. The study concluded and recommended that CBZ Bank should

a)     a) improve its level of strategic cost management so that it can reduce its procurement and operational costs and sustain its competitive advantage;

b)     b) improve its level of supplier integration so as ensure the efficient flow of resources in the supply chain and the removal of impediments in the organization’s procurement function;

c)      c) prioritize the involvement of its suppliers earlier in the procurement function and

d)     d) improve their relationship with their suppliers so as to enhance efficiency and improve their procurement functions.