Influence of material availability on international procurement of goods by private sector: A case of ALAF Ltd, Dar es Salaam, Tanzania

Dorice Njau; Paul M. Nsimbila

doi:10.51867/ajernet.6.3.40

Authors

Dorice Njau
dorice.njau@safalgroup.com
Mzumbe University, Dar es Salaam Campus College, Tanzania
Paul M. Nsimbila Mzumbe University, Dar es Salaam Campus College, Tanzania https://orcid.org/0000-0003-2415-8542

Keywords:

ALAF, Goods, Inventory, International Procurement, Lead Time, Supplier

Abstract

This study investigated the influence of material availability on the international procurement of goods by the private sector particularly focused on to examine the influence of supplier inventory level on international procurement of goods by private sector and to determine the influence of lead time for order on international procurement of goods by private sector. The study was guided by resource exchange theory, emphasizing the significance of resource exchange and the relationships between suppliers and buyers, to provide a theoretical basis for understanding procurement dynamics. The study used cross sectional research design while simple census sampling technique was used to include all 87 staff. Data were collected through questionnaire while data were analysed using descriptive analysis. The study's findings revealed that supplier inventory turnover rates, days sales of inventory (DSI), and reliability significantly influence procurement decisions. Additionally, lead times for order processing and transportation were found to be critical determinants of efficiency in international procurement. Based on these findings, the study recommends that organizations should prioritize suppliers with high inventory turnover rates and low DSI, as these suppliers are better equipped to maintain supply continuity and minimize procurement risks. The study also recommends that businesses should work towards minimizing lead times by optimizing their order processing systems and improving communication with suppliers. Streamlining internal procurement processes and fostering transparent communication will help mitigate delays and improve procurement efficiency.

Dimensions

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