CHALLENGES TOWARDS INFORMATION AND COMMUNICATION

TECHNOLOGY APPLICATION IN PROCUREMENT PROCESS IN TANZANIA.

ACASE STUDY OF IRINGA MUNICIPAL DISTRICT.

SUPERVISED

BY

( MR. EDOM FUNGO)

THIS RESEARCH PROPOSAL IS FO THE FULLFILMENT OF BACHEROL DEGREE

IN BUSINESS ADMINISTRATION ACCREDITED BY UNIVERSITY OF IRINGA.

DECEMBER 18, 2013

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ABBREVIATIONS AND ACRONYMS

E-Mail Electronic Mail

E-Commerce Electronic Commerce

E-Procurement Electronic procurement

ICT Information and Communication Technology

JIT Just-in-Time

LTD Limited

MSD Medical Store Department

PMU Procurement Management Unit

RFP Request for Proposal

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TABLE OF CONTENTS

ITEMS PAGE

Title page.............................................................................................................................i

Certification................................................................................................................................... ii

Abbreviations and acronyms......................................................................................................iii

Table of contents...........................................................................................................................iv

CHAPTER I: OVERVIEW OF STUDY.....................................................................................1

1.0 Introduction...........................................................................................................................1

1.1 Background information to the problem...........................................................................1

1.2 Research Problem.................................................................................................................2

1.3 research objectives…………………………………………………………………………..2

1.4 research

question……………………………………………………………………………..2

1.5significance of the study……………………………………………………………………...3

1.6 organization of the study……………………………………………………………………3

CHAPTER 11 LITERATURE REVIEW…………………………………………………….4

2.0 introduction…………………………………………………………………………………...4

2.1 theoretical base………………………………………………………………………………4

2.2 empirical study………………………………………………………………………………

10

iii

2.3 conceptual

framework……………………………………………………………………….13

2.4measurement

variable………………………………………………………………………..13

CHAPTER 111 RESEARCH METHODOLOGY………………………………………….14

3.0 introduction…………………………………………………………………………………

14

3.1 research philosophy…………………………………………………………………………

14

3.2 research design……………………………………………………………………………..14

3.3 types of

measurement……………………………………………………………………….15

3.4data collection method and

approach………………………………………………………..16

3.5 Types data...........................................................................................................................18

3.5.1 Primary data.................................................................................................................18

3.5.2 Secondary data.............................................................................................................18

3.6 Sampling techniques...........................................................................................................19

3.6.1 Sample and sample size...............................................................................................19

3.6.2 Sampling procedures....................................................................................................19

3.7 Reliability and validity of data..........................................................................................19

3.7.1 Reliability.....................................................................................................................20

3.7.2 Validity........................................................................................................................20

3.8 Management and analysis of data.....................................................................................20

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3.8.1 Data management........................................................................................................20

3.8.2 Data analysis................................................................................................................20

3.8.3 Expected results...........................................................................................................21

3.9 Limitation of the study.......................................................................................................21

3.9.1 Time scales and work plan...........................................................................................21

3.9.2 Budget..........................................................................................................................22

REFERENCES............................................................................................................................23

APPENDICES.............................................................................................................................24

Questionnaires to Procurement Management Unit (PMU).......................................................25

Questionnaires to suppliers.......................................................................................................26

Questionnaires to users.............................................................................................................27

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CHAPTER I: OVERVIEW OF STUDY

1.0 INTRODUCTION

1.1 Background information to the problem

Traditionally procurement process has associated with a sequence of non value adding

clerical activities; excessive time in processing order, both internally and externally; and

excessive cost of purely transactional activities. In other words traditional procurement has

been proved to be inefficient (Lyson et al 2006).

It is because of such inefficiencies that many organisations are increasingly recognizing

that administrative paperwork often serves merely to document a chain of events or to

provide a logistical trail. This leads procuring entities need to transform the administrative

function into value added process by reducing, eliminating or combining steps whenever

possible. All organizations are therefore forced to embrace the strategic implications of

Information and Communication Technology (ICT) which is an initiative by which an

organization adopts computer application to assist with the management of procurement,

logistics or supply chain activities, whether is for many or single applications (Geraldine

2008).

When ICT is adopted in the procurement process, procuring entity is expected to

experience cost reduction and efficiency, quick and easy access to critical data in real

time, speedier communication with suppliers, more time can be spent on strategic

purchasing, achieving of improved information accuracy, and integration of systems with

other departments ( Leenders et al 2006).

(Ministry of Finance) (www.unu.edu, cited on 19/02/2010).

1.2 Research Problem

Procurement involves handling of vast data and information that calls for computerization

because manual operations are very slow and cumbersome; and information might not be

available right on time. Due to that many organisations have been investing in

procurement electronically since nineties just to get a program that will deliver the right

goods or services from the right source of a right quality at a right price and time.

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Generally, ICT application is expected to increase efficiency and effectiveness in

procurement proceedings (Sanga 2009).

Besides the gains expected from ICT application in procurement process it has been

observed that the rate of adoption of ICT application in many organizations in Tanzania is

going slow (Kulaya 2009). As a result most of organizations are still conducting their

procurement proceeding manually. Because of this some times information is lost in

manual files forcing the person concern to make decisions without considering all aspects

of the issue on hand thus impairing the quality of procurement activities.

The challenges which lead organizations in Tanzania to adopt ICT slowly call for a study.

Therefore, this study is intended to investigate challenges which result to the existing rate

of ICT application in Tanzania particularly in iringa municipal District Council.

1.3 Research objectives

Main objective

To identify challenges towards ICT application in procurement process in Tanzania.

Specific objectives

To identify areas in which ICT is applied in procurement process at iringa

municipal District Council.

To find out impact of ICT application in Procurement Process at iringa municipal

District Council.

To explore the challenges facing ICT application in Procurement Process at iringa

municipal District Council.

To identify the problems associating with existing rate of ICT application in

procurement process at iringa municipal District Council.

1.4 Research questions

Main question

What are the challenges towards ICT application in procurement process in Tanzania?

Specific questions

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Which areas are ICT applied in procurement process at iringa District Council?

What is the impact of ICT application in procurement process at iringa District Council?

Which challenges does iringa District Council face in applying ICT in procurement

process?

Which problems associate with existing rate of ICT application in procurement process

at iringa District Council?

1.5 Justification of the study

This study is expected to be of significant to all who are interested with procurement

proceedings especially in the area of information and communication technology. More

specifically this study:

Will reveal challenges associating with ICT application in procurement process of

which policy makers and procuring entity may get a starting point of what should

be done to improve the situation.

Will add knowledge to researcher and other academicians on the matter relating to

ICT and procurement, with this significance it will be used as a reference.

Will enable the researcher to widen the knowledge and qualify for an award of

Certified Procurement and Supplies Professional offered by Procurement and

Supplies and Technicians Board (PSPTB).

1.6 Organisation of the study

This research proposal is organised in three chapters. Chapter one is an overview of the study

which consists of the background of the problem, research problem, research objectives,

research questions, significant of the study and organisation of the study. Chapter two is

consists literature review which a body of theoretical bases of the study, empirical

studies, summary of the reviewed literature and a gap to fill, and ultimately is conceptual

framework and measurement of variables. Also, chapter three is about research

methodology which consists research paradigm’s; research design; type of measurement;

data collection methods and approach; types of data; sampling techniques; reliability and

validity of data; management and analysis of data; and limitation of the study. The last

pages of this proposal are of references and appendices.

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CHAPTER II: LITERATURE REVIEW

2.0 Introduction

This chapter explain about theoretical and empirical bases of the related studies;

conceptual framework and measures of variables. It is important chapter as it shows how

other scholars/ authors say about matter on study.

2.1 Theoretical bases of the study

Procurement which is the acquisition process is commonly identified by different names.

In manufacturing, the process it is typically called purchasing. In government circle it has

traditionally been referred as procurement. In retailing and wholesaling buying is the most

widely used term. In many circles the process is referred as in-bound logistics. Although

differences do exist concerning acquisition situations, the term procurement is used to

include all types of purchasing (Bowar et al 1993).

In other words procurement is the process of acquiring goods, works and services covering

both acquisitions from third parties and from in-house providers. The process spans the

whole life cycle from identification of needs, through to the end of the useful life of an

asset. It involves options appraisal and the critical “make or buy” decision

(44www.midssex.gov.uk, cited on19/02/2010).

Traditional procurement process involves the following steps:

Identifying or re-evaluating needs

Procurement transaction is usually initiated in response to either a new or the existing

needs for the user (by individual or department within the buyer’s firm). The buyer should

then check first if there is already some commitment by long term contract, in which case

an order could be placed immediately. In the absence of such agreement, the buyer will

ask if there is an existing source of supply whose performance is satisfactory, if so, the

usual practice is to re-order from the same source unless there is reason to review the

current position (Coile et al (2003).

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Defining and evaluating user requirement

Once the needs have been determined, its requirement must be re presented in some type

of measurable criteria (Opacity).

Make or buy decision

This is where the firm should ask themselves whether the product/services needed can be

made or bought to satisfy the user’s needs. Then the buyer should identify the type of

purchase. This is necessary to satisfy the user’s needs and will determine the amount of

time needed for the procurement processes and the complexity of the process (Opacity).

Conducting a market analysis

Source of supply can operate in a purely competitive market (when there are many

supplies) or a monopolistic market. Knowing the type of market will help the procurement

professional determine the number of suppliers in the market where the power/dependence

balance lies and which method of buying might be effective negotiation, competitive

bidding and so on (Coile et al (2003).

Identifying all possible suppliers

This involves the identification of all possible suppliers that might be able to satisfy the

user’s needs. It includes possible suppliers that the firm has not used previously. If the

company is very small it may rely upon more common sources of such information such

as the company’s yellow page directory (Opacity).

Pre-screen all possible sources

Pre-screening reduces the pool of possible suppliers to those that can satisfy the user’s

demand. It involves evaluating the suppliers’ base. This reduces suppliers to those that can

meet the user’s negotiable requirements or desires. This can be done through the use of

competitive bidding if the procurement items are fairly simple or standard and there is

sufficient number of potential vendors, if not using engineer test or simulated end use

situations (Opacity).

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Choosing a suitable supplier

The choice of supplier also determines the relationship that will exist between the buying

firms and how the procedures of such relationships will be structured unimplemented. This

activity also determines how the relationship with the non-selected suppliers will be

maintained (Opacity).

Receiving delivery of products or services and post purchase performance evaluation

Once the services has been performed or the product delivered, the supplier’s performance

must be evaluated to determine whether it has truly satisfied the user’s needs (Opacity).

The objective of procurement in general is to find out ways to minimize the acquisition

costs and maximize the delivery of goods and services in order to gain competitive

advantages (Mkizungu 2009). In order to achieve the mentioned objectives the whole

process need to be right at the right time.

Dobler (1996) says that “the significance of computerization for purchasing and materials

management is readily understood when one considers the amount of purely

administrative work involved in the procurement cycle of the average company”.

In addition Emmelhainz (1992) says, “today, a computer based system for handling

purchasing activities is a necessity”. Also, Heinntz et al (1991) emphasize that “a

computer is in effect a huge file, a super fast calculating machine, and a printer rolled into

one. It stores basic data in its memory and translates the data for procurement action.

These authors emphasize the need for computer in the procurement proceedings as a basic

tool in ICT.

Information and Communication Technology (ICT) itself refers to an umbrella term that

includes any communication device or application, encompassing: radio, television,

cellular phones, computer and network hardware and software, satellite systems and so on,

as well as the various services and applications associated with them, such as video

conferencing and distance learning (Bajaj et al 2005)

Furthermore, Dobler (1996) sites areas in which ICT can apply in procurement process

through its basic tool which is a computer. These are:

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Maintenance of inventory records,

Computation of order quantities,

Preparation of purchase requisitions for inventory items

Preparation of request for quotation

Preparation of purchase orders

Maintenance of order status records

Distribution of accounting charges

Automatic preparation of follow-up memos

Posting of delivery and quality records, by part and by supplier,

Preparation of numerous operating reports for management

Provision of decision support system information

Auditing of invoices and preparation of cheques for payment

Electronic data interchange communications

Benefits of ICT application to the organisation

Leenders et al (2006) provide seven important benefits to the organisation. These are:

Cost reduction and efficiency gains can be achieved by streamlining the purchasing

processes and freeing up supply staff to do more value-adding work. Some organisations

have automated purchasing processes to reduce transaction costs by reducing the number

of people touching the process and reducing the cycle time from need recognition to

receipt of good service.

Quick and easy access to critical data in real time is helpful for sound decision making,

makes it easier to identify supply problems earlier, and provides useful information for

negotiations with suppliers.

Speedier communication with suppliers improves supply chain effectiveness and

efficiency, especially when dealing with international suppliers. Faster turnaround times

can lead to increased market share and lower inventories.

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More time can be spent on strategic purchasing initiatives and focusing on important

suppliers and supply projects because less time is required for administrative and tactical

supply activities.

Improved information accuracy can be achieved by replacing manual systems with

automation. The benefits can include lower inventories (example, safety stock), reduced

stock-outs, lower expediting costs, and improved customer satisfaction.

Integration of systems with other departments, suppliers, and customers can provide

accurate information on a timely basis to assist with decision making in the areas of

production planning and material requirements planning.

Enterprise systems provide control over how and where the money is spent. IBM uses and

enterprise resource planning (ERP) system to feed information to its business database

network where all spend data are housed and assessable by users. IBM’s online spending

tools help to ensure compliance with supply policies, including contract compliance and a

significant reduction of maverick spending.

ICT application tools

Leander (2006) says, it is not easy task, however, to decide which of the many tools will

best serve the organisation’s purposes, especially when technology is changing rapidly. He

suggests some of important tools for adopting ICT such software, fax machines,

fax/modem, e-mail, and voice mail. He also comments on these tools as follows:

Software

To operate the computer, two types of software are needed. The first is the system

software, a group of programs provided by the computer manufacturer that runs the

computer-starts it and makes the components work together. They do things such as copy

information from one storage disk to another and cause the printer to work. The system

software currently is very adequate for the tasks at hand.

Second is the application software, which are the programs that manipulate data for a

specific purpose, such as maintaining the open order file or taking supplier performance

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Statistics and formatting them into a supplier performance evaluation analysis and report.

There are a number of off-the-shelf purchasing software packages available. This software

is constantly changing and improving, and the published guides to current programs

appear frequently. These software programs may be designed for the exclusive use of

supply, or they may be a module in an enterprise resource planning system designed to

link together all of an organisation’s business processes.

Facsimile transmissions

Although e-mail has probably surpassed the fax in most work places, facsimile machines

are a fast and convenient method of transmitting documents and other paper-based

correspondence.

Fax/modem

The computer fax/modem card allows the user rapid transfer of data, graphics, and images

using the computer and conventional telephone line. The fax/modem can be used by

purchasers for the conventional receipt and transmission of a fax, electronic mail (e-mail)

with suppliers, and transmission of data files that can be downloaded and manipulated in

spreadsheets or word processors without re-keying the data as required by conventional

fax machines. Fax/modems are more cost-effective than fax machines because of the faster

rates of data transmission.

Electronic mail (e-mail)

E-mail allows users to transmit messages back and forth within the organisation and to

external parties. E-mail can be used to communicate with suppliers, and, in some cases, is

a means for suppliers to access and respond to requests for proposals (RFPs).

Voice mail

Voice mail is another communication tool that can, if used properly, save time, provide

accurate information, improve communication between buyers and internal customers and

suppliers, and cut down on “telephone tag”. At its best, voice mail allows callers to

communicate detailed information that the receiver can then respond to, in detail, or act

on, without requiring response.

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Bar coding

A bar code is a series of parallel rectangular bars and spaces arranged in a predetermined

pattern to encode letters, numbers, and special characters. An optical character recognition

device, or scanner, “read” the information by passing a light beam across the bar code,

sensing the width of the bars and transmitting the information into the computer, where it

is decoded. Bar code information can include a wide array of data, such as product codes,

date, location, and other identification data. Bar coding, or automatic identification

systems, replaces data key entry with automatic data capture at the point of transaction and

direct transmission to a computer or storage device. In supply, bar coding is particularly

useful in receiving inbound materials and order generation. The benefits in receiving are

quick and accurate data entry and faster checking and clearing of shipments. Automatic

tracking of shipments throughout the system is simplified and the receiving dock operates

in a just-in-time (JIT) mode. The potential benefits of bar coding in order generation are

labour saving, fewer errors and corrections, fewer disruptions due to material

unavailability, and less need for safety stocks.

2.2 Empirical Studies

Abroad studies

E-procurement which involves ICT in the developed countries is mostly used and is very

popular. According to one recent survey shown in the www.capsresearch.org, cited on

19/02/2010 shows that twenty three percent of 360 companies bought products or services

through an online auction in the last three months of 2001, compared with 17 percent in

third quarter.

Sony which has 2500 suppliers of components and materials has cut the number by half in

a “life-changing” effort to streamline its cumbersome procurement network and has cut

costs by about 500 billion yen after starting to apply e-commerce. The move by the

entertainment and electronics group marks another shift in the Japanese business

environment which over the past six months has undergone more radical changes than at

any other time in the past 20 years. Corporate Japan has responded more rapidly and

ferociously than expected to the economic crisis- a dramatic fall in consumer spending that

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has hit Japan hardest of all the leading economies (www.business.timesonline.co.uk, cited

on 19/02/2010).

Kopezak et al (2003), states that the synchronization in a value system require a

sophisticated information system to foster real-time information processing and sharing

coordination and decision making by the entire supply chain. This research shows the need

of ICT to sophisticate the information system in the procurement process since

procurement is within supply chain.

Studies done in Tanzania

Ridhiwani (2009) in the study on “Impact of ICT in managing inventories through supply

chain in business organisations” a case of Bytrade Tanzania LTD reveals that, data related

to inventories are not entered in time in the system of information from warehousing

department with other departments. Also, data entered are not accurate due to late

recording and little computer knowledge of the personnel in the warehousing offices and

also, no direct entering of inventories warehousing data which was supposed to be done by

the warehousing officer. He also concluded that ICT needs accurate data transfer from the

star to the end without any delay on the routine operations. Furthermore he argued that,

business organizations like Bytrade Tanzania LTD, needs both modern and traditional

technologies because they have suppliers who need modern technology in order to work in

an effective and efficient manner. But at the same time, business organizations need

traditional technology in doing similar operations. He recommended that, data should be

entered in the computer system at the time when it arrives in the warehouse and make sure

that all employees are having computer knowledge. He concludes that, Bytrade Tanzania

LTD should install modern technology in all its warehouse locations. This research of

Ridhiwani emphasizes the need for ICT in managing inventory. I t is of importance to this

study as far as procurement process associate with inventory management information.

Also, Tesha (2006) argues that “Now days, purchasing and supplies has flourished in

terms of skills, techniques and its end products and enabling factor is ICT. He added that,

a study has revealed that ICT is not the barrier at all to the procurement and supplies

practitioner rather it simplifies work so as to increase efficiency and accuracy; not only

specialists need to spend many hours in planning and developing the system and the

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software involved in supply chain management, but the attitude of those who are to use the

system need to be carefully considered.

Mlole (2003) in his article titled “Inventory management and control problem in

Tanzania” shows that computers are needed to systematize the function and apply

sophisticated application package and tools. Argues that, most organizations have acquired

personal computers but very small portion of computer are used to the research works,

financial and materials management operations. Likewise, the agency in the material

management field in most organization of Tanzania is that of having outdated record and

comments, therefore there are almost effective and efficient application of computer in

operations is obtained if the organisation in question has had a good manual or mechanical

recording system.

Tesha (1994) in his article “Information Technology in Material management” says that,

“in order to asses the performance and identify company’s priorities managers need tools

and this is information”. This information will be supported by information strategy which

can be measured in terms of the ability of the organization to capitalize on the

opportunities by operating more efficiently and more effectively. Managers will need a

support of their decision by having accurate relevant and timely information available to

them. Within materials management therefore, information technology becomes

applicable in several areas such as stock monitoring and control, stock ordering, stock

counting and recording, order processing and expedition; quality control and total quality

management and in logistics management by providing effectively the information needed

for decision making. Kamihanda (1993) in his article titled “The role of computer

technology in materials management” says, “even with the very limited extent of computer

use in Tanzania before today’s obvious endeavour by almost every institution has gone to

computer”. Material management had already made its way on the list of computerized

function in some of the few entities that had computer then. This was true for example

with TANESCO, THA, TRAMA VALMET, MWADUI DIAMOND MINES, AGIP (T)

LTD and a few others. True in some of those who put a certain amount of material

management on computer, there were hitches in some instances sever. Nevertheless the

need was evidently seen. He adds that, having admitted that computer technology is still

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generally very green in Tanzania, to the candidacy of material management for

computerization one is bound to look at countries were computer information technology

can safely be regarded as an audit. It is evident that material management is among the

most important computer application area.

Summary of reviewed literature

Both Authors’ views and facts reviewed have shown that ICT is applicable in procurement

process in Tanzania and world at large. Also, the literature has shown there are different

forms in which ICT is applied in procurement process. When ICT is applied in

procurement process it has been seen result into advantages to a procuring entity.

The Authors’ views and findings reviewed concentrate on the ICT issues relating to

Tanzania and Global at large. But issues in iringa municipal District Council are not

addressed. Furthermore, the reviewed literatures are of past time while ICT is a rapid

evolving issue which needs to be addressed time to time.

2.3 Conceptual framework (Conceptual model)

ICT application in procurement process is of importance so as to increase efficiency and

effectiveness in the procurement proceedings. The effective adoption of the mentioned

ICT depends much on the organisation/institution business environment in general. Thus,

adoption of ICT in procurement process depends on the characteristics of those who are

involved in the process, cost of adoption and influences from other stake holders.

Therefore, the rate of adoption of ICT application in procurement process mainly depend

on variables such as knowledge of personnel involved, rate of ICT application by suppliers

in their proceedings, Availability of ICT tools (ICT infrastructures), and cost associating

with adopting ICT application. And the expected outcome of effective adoption of ICT in

procurement process is efficiency and effectiveness in procurement proceedings.

These variables can be mapped as follows:

Independent variables Dependent variable Outcome

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Knowledge of personnel Effective adoption of ICT

application in procurement

process

Effective and efficient

procurement proceedingsRate of ICT application by

suppliers

ICT tools availability

ICT adoption costs

2.4 Measurement of variables

Variables under this research will be measured through study of the ICT system at iringa

municipal District Council. In studying ICT system at iringa municipal District Council

researcher will collect information from participants in the procurement process.

Information/data obtained will be analysed and compared with different theories and other

cases relating to this study.

CHAPTER III: RESEARCH METHODOLOGY

3.0 Introduction

This chapter indicates the systematic approach through which this research will be

undertaken. It consists of research paradigms (philosophy), design (strategy), types of

measurement, data collection methods, types of data, sample and sample size, sampling

procedure, area of study , reliability and validity, data management and analysis, expected

results and limitation of the study.

3.1 Research paradigms (Philosophy)

Paradigms or “school of thought” in research are accepted ways of how people view and

look at reality and the consequent approaches/ methods to generate knowledge that is held

by a group of intellectuals who wide have influence in that area.

In this research, researcher will adopt positivism as the philosophical approach in

conducting the study. With this phenomenon the only positive requirements to the

respondents on the challenges towards ICT application in procurement process will be

considered.

3.2 Research design

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The research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data (Kothari

2004).

Kothari splits the overall research design into the following parts:

The sampling design which deals with the method of selecting items to the given

study.

The observation design which relates to the conditions under which the

observations are to be made.

The statistical design which concerns the question of how many items are to be

observed and how the information and data gathered are to be analysed.

The operational design which deals with the techniques by which the procedures

specified in the sampling, statistical and observational design can be carried out.

Due to time and financial constraints, sampling, observation, and statistical design will be

applied. This is a case study design; researcher prefers to use a case study design because

it will be convenient for the data collection. In this case study questionnaires will be

prepared and distributed to all stakeholders for accomplishment of the task because it will

be reliable and it give enough chances to the respondents to answer the questions

accordingly.

3.3 Types of measurements

According to Kothari (2004), there are two basic types of measurement approaches to

research, i.e. quantitative approach and the qualitative approach. The former involves the

generation of data in quantitative form which can be subject to rigorous quantitative

analysis in a formal and rigid fashion. This approach can be further sub-classified into

inferential, experimental approach to research form a data base from which to infer

characteristics or relationship of population. This usually means survey research where a

sample of population is studied (questioned or observed) to determine its characteristics

and it is then inferred that population has the same characteristics. Experimental approach

is characterized by much greater control over the research environment and in this case

some variables are manipulated to observe their effect on other variable. Simulation

approach involves the construction of an artificial environment within which relevant

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information and data can be generated. This permits an observation of the dynamic

behaviour of a system (or its sub-system) under controlled condition.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour. Research in such a situation is a function of researcher’s insights

and impressions. Such an approach to research generates results either in non-quantitative

form or in the form which are not subjected rigorous quantitative analysis. Generally, the

techniques of focus group interviews projective technique and depth interviews are used

(Kothari 2004)

Therefore this research will adopt both qualitative and quantitative approaches of

measurements because both qualitative and quantitative types of data will be required in

this research.

3.4 Data collection methods and approach

According to Kothari (2004) data collection methods are as follows:

i) Observation method

ii) Interview method

iii) Through questionnaire

iv) Through schedule, and

v) Other methods which include (a) warranty cards (b) distributor audit (c)pantry

audits (d) using mechanical devices

i) Observation Method

This is one of the primary data collection methods. Is systematic planned and recorded and

is subjected to check and control on validity and reliability. The information is sought by

way of investigator’s own direct observation without asking from the respondent (Kothari

2004).

ii) Interview method

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The interview method of collecting data involves presentation of oral-verbal stimuli and

reply in terms of oral-verbal responses. This method can be used through personal interview

and where viable, through telephone interviews (Kothari 2004).

iii) Questionnaire method

This is the method of collecting primary data by sending questionnaires to the respondents

with a request to complete and return them to the researcher and it consists of a number of

questions printed or typed in a defined order on a form or set of forms (Kothari 2004).

iv) Collection of data through schedule method

This method of data collection is very much like the collection of data through

questionnaires, with little difference which lies in the fact that schedules (proforma

containing a set of questions) are being filled in by the enumerators who are specially

appointed for the purpose.

Some other methods of data collection

a) Warrant cards- are usually postal sized cards which are used by dealers of

consumer durables to collect information regarding their product.

b) Distributor or store audits-are performed by distributors as well as

manufacturers sought their salesmen at regular intervals. The data are obtained

in such audits not by questioning but by observation.

c) Pantry audits- this is used to estimate consumption of the basket of goods at the

consumer level. The investigator collects an inventory of types, quantities and

prices of commodities consumed; data are recorded from the examination of

consumer’s pantry.

d) Mechanical devices- is the collection of information by way of indirect means

eye camera, pupil metric camera, monitor picture camera and audiometer.

The researcher will use the observation, interview, questionnaires, and observation.

Observation

The researcher will observe systems used by iringa municipal District Council in the

information and communication management. Also, will observe tools used for

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communication in the procurement proceedings. This method is expected to identify areas

where ICT is applied in the procurement process.

Interview

This instrument will be use by a researcher to collect information from the respondents

more quickly. The questions will help the researcher to undertake a depth study on the

problem. This method will highly apply to top management staff. This method is targeted

to obtain information in all research objectives or questions.

Questionnaires

The researcher will supply questionnaires to user departments, stores department,

procurement, accounting department and some suppliers of iringa municipal District

Council. Questionnaires will include both open ended and close ended questions and they

will be unstructured. This method is expected to explore challenges facing ICT application

in procurement process, areas where ICT is applied in procurement process and its

advantages at iringa municipal District Council.

3.5 Types data

Both primary and secondary data will be collected under this study.

3.5.1 Primary data

This will include data from the original source that has not been processed. They will be

from observations, questionnaires and interviews.

3.5.2 Secondary data

This will include processed data that are recorded from different sources such as financial

reports, journals, magazines, internet web, and various articles.

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3.6 Sampling techniques

3.6.1 Sample and sample size

Population/Sample frame

Under this study population will comprise of procurement management unit (PMU) staff,

top management staff, staff from user departments, tender board members, and suppliers

of goods and services at iringa municipal District Council. The whole population/sample

frame is approximately to be of 80 individuals.

Sample size

Sample will be derived from sample frame. It is expected to comprise four staff form

PMU, two from top management staff, three suppliers, twelve users, and four member of

tender board. It will make a total of twenty five individuals.

3.6.2 Sampling procedures

Sampling procedures can be probability or non-probability sampling.

Probability sampling

This is also known as random sampling or chance sampling under this design, every item

of the universe has an equal chance of inclusion in the sample. Random sampling ensures

the law of statistical regularity which states if an average the sample chosen is a random

one, the sample will have the same composition and characteristics as the universe .

Non-probability Sampling

Under this procedure, samples are obtained by methods that are more subjective than

objective. The researcher’s judgement is the basis for such selection and often depends on

the demands of the situation

Convenience samples

Convenience sampling involves selecting respondents based on the ease of their

accessibility.

i) Judgemental or purposive sampling

Under this sampling procedure the researcher selects respondents based on her/his

reasonable judgement that they are the ones who are most likely to provide the desired

information.

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3.7Reliability and validity of data

3.6.3 Reliability

The reliability can be tested by finding out such things about said data: (a) who collected

the data? (b) What were the sources of data? (b) Whether they were collected by using

proper methods (d) at what time were they collected? (e) was there any bias of the

complier? (f) What level of accuracy was desired and was it achieved? (Kothari 2004).

The researcher will make sure that data are collected from authoritative personnel at Meru

District Council and as per research design. The researcher will also compare the

questionnaires and interview information from the authoritative personnel and

questionnaires from other respondents.

3.6.4 Validity

Validity implies applicability and usefulness of the data obtained through such reliable

design and all the way to the conclusive findings.

The researcher will ensure that the data collected through questionnaires, observation,

interview will be collected from the authoritative personnel in order to maintain validity of

the measurable data. To ensure validity of data in this research, cross checking and review

of data collected through questionnaires against those collected through interviews and all

research documents.

3.7 Management and analysis of data

3.8.1 Data management

In managing data researcher will make sure that most of data collected will be edited and

analysed in order to detect error that occurred during data recording. Researcher will use

both field and office editing.

3.8.2 Data analysis

This will involve computation of different measures along with searching for patterns of

relationship that exist among data groups. Analysis may therefore be categorized as

descriptive analysis inferential analysis (inferential analysis is commonly known as

statistical analysis).

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Editing: According to Kothari (2004) editing of data is a process of examining the

collection of raw data (specifically in surveys) to detect errors and omissions and to

correct them when possible. Under this researcher will apply editing on the raw data

collected direct from the field.

Coding: Coding refers to the process of assigning numerals or other symbols to answers

so that responses can be put in to a limited number of categories or classes. Such classes

should be appropriate to the research problem under consideration (Kothari 2004).

Classification: According to Kothari (2004), most research studies result in a large

volume of raw data which must be reduced into homogeneous groups if we are to get

meaningful relationships. Researcher will classify the data as well as distinguish data from

each respondent at iringa municipal District Council.

In general, the collected data will be processed and analysed through qualitative and

quantitative methods..

3.8.3Expected results

The study is expected to come up with challenges associating with ICT application in

procurement process in at iringa municipal District Council. The out put will be a research

paper to fulfil the level of certified procurement and supplies professional (CPSP).

3.9Limitation of the study

During my research I expected to meet with different challenges such as rainfall which is due to

climatic condition where by some roads may be accessible, also scarcity intems of financial

capabilities can lead to unsuccessful work of collecting data from different areas including in the

organization it

3.9.1 Time scales and work plan

The following represents the activities work plan for the research process.

Date Description of activities

21

7th to 22nd February Preparation of research proposal

23rd to 26th February Supervisor consultation

27th to 3rd February Review and submission of research proposal to the PSPTB

10th to 17th March Field work data collection

18th to 27th March Data analysis and interpretation

28th to 31st March Research report set up

1st to 7th April Supervisor consultation

8th to 12th April Review of supervisor’s comments

13th to 16th April Supervisor consultation

17th to 23rd April Final review and submission of a research report to

PSPTB

3.9.2 Budget

The following are descriptions of costs expected to be incurred by a researcher in

do this research.

S/N Items of cost Amount

1 Stationeries 200 000

2 Transport 140 000

3 Communication 15 000

4 Internet services 12 000

5 Expenses during data collection in the field 40 000

Total 407 000

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REFERENCES

Bajaj K. K and Nag D (2005). E-Commerce: The cutting edge of business. 2nd Edition. New

Delhi, Tata McGraw-Hill Publishing company.

Collin, S. M. H (2002). Dictionary of computing. 4th Edition. London, Peter Collin Publisher.

Dobler and Burt (1996). Purchasing and Supply Management. 6th Edition. Indian Tata, McGraw

Hill Companies.

Emmelhainz, Margaret A (1992). Computer in Purchasing: The purchasing Hand Book. 5th

Edition. New York, McGraw-Hill Companies.

Geraldine, Rashel A (2008). Public Procurement Regulatory Authority. PPRA Journal, ISSN

1821-6021, vol 1, number 10.

Heinritz, S. F, Farrell, Paul V, Giunipero, L and Kolchak, M (1991). Purchasing Principles and

Applications. 8th Edition. Englewood Cliffs, Prentice Hall.

Kamihanda, A. Drunker (1994). Computerizing Supply Management in Tanzania.

Kothari, C.R (2004). Research methodology. 3rd Edition. New Delhi: New age International (p)

limited.

Leenders J. and Flynn F. (2006). Purchasing and Supply Management. 13th Edition. USA,

McGraw Hill.

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APPENDICES

Questionnaires to Procurement Management Unit (PMU)

Dear Respondent,

This questionnaire is for a study titled “Challenges towards Information and Communication

Technology application in procurement process”. It is for academic purpose only. You are

requested to fill them with clarity and the answers you offer will be treated confidential.

Thank you for your cooperation.

1 In which activities do you use computer in your department? (tick where appropriate)

i) Order processing ( )

ii) Ordering items ( )

iii) Keeping records ( )

iv) Finding suppliers ( )

v) Others (mention)………………………………….

………………………………

……………………………….

………………………………..

2 Do you communicate with other departments through (tick where appropriate)

i) Computer ( )

ii) Papers (manually) ( )

iii) Both computer and papers ( )

3 Which problems do you get from doing procurement activities manually?

4 Do you communicate with your suppliers through (tick were appropriate)

i) Internet ( )

ii) Postal letters ( )

iii) Both internet and Postal letters ( )

24

5 Do you buy items from international suppliers? Yes ( ) No ( )

6 If you buy items from international suppliers, in which way do you communicate with

them? (Tick where appropriate)

i) Internet ( )

ii) Postal letters ( )

iii) Both internet and postal letters ( )

7 Are the following affecting you in computer application in your operations?

(Tick where appropriate)

i) Knowledge of other staff on using computer ( )

ii) Availability of computers and their tools in your council ( )

iii) Costs of using computers ( )

iv) Others (mention)

……………………………………………………………………………………………

……………………………………………………………………………………………

……………………………………………………………………

8 Which advantages do you see if internet and computers will be fully used in your

operations?

……………………………………………………………………………….

………………………………………………………………………………

9 What do you think can be done to increase the rate of computer and internet application in

procurement process in your Council?

10 Questionnaires to suppliers

Dear Respondent,

This questionnaire is for a study titled “Challenges towards Information and Communication

Technology application in procurement process”. It is for academic purpose only. You are

requested to fill them with clarity and the answers you offer will be treated confidential.

25

Thank you for your cooperation.

1 Do you communicate with your buyers through (tick where appropriate)

i) Internet ( )

ii) Postal letters ( )

iii) Telephone ( )

iv) Both internet, postal letters and telephone ( )

2 If you use internet, in which operations do you apply it?

i) Receiving orders ( )

ii) Sending quotations ( )

iii) Advertisement ( )

iv) Any other (specify) …………………………………..

…………………………………..

…………………………………..

3 Which advantages do you see from using internet to communicate with your customers?

.................................................................................................................................................

.................................................................................................................................................

.............................................................................................................

4 Which obstacles do you face in applying internet and computers to communicate with your

customers?

5 What do think can be done to improve computer and internet application in dealing with

your customers?

..........................................

……………………………………………………………………………………………

…………………………………………………

Questionnaires to users

Dear Respondent, This questionnaire is for a study titled “Challenges towards

Information and Communication Technology application in procurement process”. It is

26

for academic purpose only. You are requested to fill them with clarity and the answers

you offer will be treated confidential

Thank you for your cooperation.

1 Name of department…………………………………………….

2 Do you communicate your requirements to procurement management unit (PMU)

through (Tick where appropriate)

i) Computer and internet ( )

ii) Paper documents ( )

iii) Telephone ( )

iv) Both computers, telephones and paper documents ( )

3 Which problems do you get from doing procurement activities manually?

……………………………………………………………………………………………………

………………………………………………………………………………………………

…………………………………………………………………

4 Which advantages do you think your Council will gain if Internet and computers will be

used effectively in procurement process?

………………………………………………………………………………………………

………………………………………………………………………………………………

……………………………………………………………………

5 What factors hinder you from using computers in the whole process of communicating

with PMU?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………

6 Which ways do you suggest to improve application of computers and internets in

procurement process in your council?

27

UNIVERSITY OF IRINGA

THE FACULTY OF BUSINESS AND ECONOMICS

NAME.NEMON MSIGWA

REG NO BBA- 08946

PROGRAM.BUSINESS ADMINISTRATION

COURSE.RESEARCH METHOD

LECTURE.MR.EDOM FUNGO

28