AN ASSESSMENT ON THE EVALUATION OF PURCHASING PRACTICE AT BANK OF ABYSSINIA

Abstract

The objective of this research is to critically evaluate the purchasing practice at Bank of Abyssinia. Procurement is a means by which an organization acquire good and services in a scientific manner. This study focused on the evaluation of procurement process at Bank of Abyssinia (BOA). The purpose of the study was to assess the performance of procurement department, the satisfaction of the user department, the challenges faced by the procurement department and the adverse effect of the perception towards the department. It was conducted in a bid to find viable solution for the prevailing inefficient and delayed purchasing practices. To this end, the researcher have gathered data from primary sources using questionnaires, interview and personal observation and referred secondary sources including purchasing manuals and various documents related to purchasing in BOA. SPSS software was applied to present and analyze the data gathered from 60 respondents. The major findings of the study indicate that the department work flow is too long and the department is not fully authorized to make decision in every procurement step and method. Based on the findings the researcher recommended the purchasing function should be improved utilizing systematic way of handling purchases and providing managerial proper attention and follow up for the unit.