Abstract:

The measurement of procurement performance is a continuous exercise that includes the task of determining the efficiency and effectiveness of the procurement function in an organization. One of the most effective methods is to evaluate the organizational procurement maturity level. The research aims to develop the strategies for improvement of a procurement process by comparing with the best practices and analyzing the gap with the current procurement maturity level in public infrastructural sector of Karachi, Sindh, Pakistan. Procurement Maturity Model of Stephen R. Guth (2010) was selected for developing an improvement plan for procurement performance. For acquiring the necessary information, a literature study was successfully conducted to gather information related to different procurement maturity models. Furthermore, an assessment survey was distributed to respondents containing questionnaires for collecting primary data on the procurement maturity index of the respective organization and by using the PMM Guth Model (2010), the procurement performance was evaluated. Thereafter, with the help of the literature review, strategies were formulated for the improvement of procurement performance. The strategies were formulated only for selected indicators having value of high significance and correlation with the dependent variable, procurement performance. These correlations were determined by using SPSS software. As a result of the research process, after the analysis of the previously defined strategies, a proper action plan was developed in form of recommended strategies to initiate the improvement in the performance of the procurement processes and mitigate the gap between the existing practices and approved benchmarks of the procurement functions.

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