Assessment of centralised purchasing in government institution: a case study of Social Security and National Insurance Trust (SSNIT Koforidua Area Office).

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The purchasing operational systems as operated by most corporate institutions are the centralized, decentralized and the hybrid. This project work seeks to analyze the operations of the centralized procurement system of SSNIT Koforidua Area Office. In centralized procurement, purchasing is organized, coordinated and regulated from the headquarters of an institution. The objectives of the study were to evaluate the effects of centralized purchasing operations of SSNIT Koforidua Area Office and to find out the challenges facing the centralized purchasing system of the institution. The main aim of it is to assess centralized purchasing system in SSNIT Koforidua Area Office. Qualitative research method, thus is purposive sampling method was employed to come to the conclusion of the study. The instrument used for this study was structured questionnaire with opened ended and closed ended questions on the operations of centralized purchasing system at SSNIT Koforidua Area Office. The study established that the operation of the centralized purchasing unit of SSNIT was effective because, Centralised Purchasing helped SSNIT to make saving on operational cost, enabled SSNIT to engage suppliers/contractors to provide service cheaper and cost reduction. Some of the challenges established by this study were: bureaucratic processes hindered the capacity of procuring staff in the implementation of centralised purchasing at SSNIT; ineffective legal framework implementation affects the centralized purchasing at SSNIT and change in technology in purchasing had challenges to the implementation of centralized purchasing in SSNIT. Majority of the respondents were in support of area proximity decentralization of purchasi ng at SSNIT. It is therefore recommended that area proximity decentralisation at SSNIT should be put in place to reduce bureaucracy, delays in purchasing processes.
A thesis submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfillment of the requirements for the degree of Master of Science.