Determining procurement best practices in South African comprehensive universities

Abstract

The procurement function accounts for the largest total amount of organisational expenditure. This fact notwithstanding, the function is still referred to as non-strategic and is often subordinate to finance in the public or service sectors, and is therefore considered as a non-value-adding task in some organisations. Despite the fact that renowned scholars have revealed that organisations may eliminate waste, realise more prospects and cut costs if they implement procurement best practices. It is reported that few organisations have adopted procurement best practices, especially in the public sector. In South Africa, public universities face numerous procurement challenges, such as procurement irregularities and wasteful expenditure of resources and money. Corruption and maladministration in the procurement system have been noticed, which involves among others, the payment of suppliers, owned or co-owned by university employees who have failed to declare their interest when providing services to the university. This study determines whether South African comprehensive universities conduct procurement according to the best practices. In order to investigate the problem, an exploratory study was carried out in two phases. The first phase comprised the literature study, while the second phase entailed an empirical study. Face-to-face interviews were conducted using open-ended questions. The findings of the study revealed that that some participating South African comprehensive universities do not conduct their procurement according to procurement best practices and consequently do not contribute sufficiently to the university’s overall objectives for competitive advantage and sustainability. While others displayed elementary initiatives in the adoption of procurement best practices, some universities had developed turnaround strategies for implementing procurement best practices. The slow progression can be attributed to the rigid, cumbersome and unclear public procurement policies that govern procurement in South Africa. So, comprehensive universities face diverse challenges in the adoption of procurement best practices. A framework for implementing procurement best practices in South African Comprehensive universities was developed.