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

ABBREVIATIONS AND ACRONYMS

E-Mail E-Commerce

Electronic Mail Electronic Commerce

E-Procurement Electronic procurement ICT JIT LTD MSD PMU RFP Information and Communication Technology Just-in-Time Limited Medical Store Department Procurement Management Unit Request for Proposal

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TABLE OF CONTENTS

ITEMS

PAGE

Title page.............................................................................................................................i Certification ................................................................................................................................... ii Abbreviations and acronyms ......................................................................................................... ii Table of contents........................................................................................................................... iii CHAPTER I: OVERVIEW OF STUDY ....................................................................................1 1.0 Introduction ............................................................................................................................1 1.1 Background information to the problem ................................................................................1 1.2 Research Problem ..................................................................................................................1 1.3 research objectives..2 1.4 research question..2 1.5significance of the study...3 1.6 organization of the study3 CHAPTER 11 LITERATURE REVIEW.4 2.0 introduction...4 2.1 theoretical base4 2.2 empirical study10 2.3 conceptual framework.13 2.4measurement variable..13

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CHAPTER 111 RESEARCH METHODOLOGY.14 3.0 introduction14 3.1 research philosophy14 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 3.5.2 Primary data ................................................................................................................18 Secondary data ............................................................................................................18

3.6 Sampling techniques ............................................................................................................19 3.6.1 3.6.2 Sample and sample size ...............................................................................................19 Sampling procedures ...................................................................................................19

3.7 Reliability and validity of data .............................................................................................19 3.7.1 3.7.2 Reliability ....................................................................................................................20 Validity ........................................................................................................................20

3.8 Management and analysis of data ........................................................................................20 3.8.1 3.8.2 3.8.3 Data management ........................................................................................................20 Data analysis................................................................................................................20 Expected results ...........................................................................................................21

3.9 Limitation of the study .........................................................................................................21 3.9.1 3.9.2 Time scales and work plan ..........................................................................................21 Budget .........................................................................................................................22

REFERENCES .............................................................................................................................23 APPENDICES ..............................................................................................................................24

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Questionnaires to Procurement Management Unit (PMU) ......................................................25 Questionnaires to suppliers.......................................................................................................26 Questionnaires to users .............................................................................................................27

CHAPTER I: OVERVIEW OF STUDY

1.0 1.1

INTRODUCTION 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.

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

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 paradigms; 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.

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 buyers 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).

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 users needs. Then the buyer should identify the type of purchase. This is necessary to satisfy the users 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 users 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 companys yellow page directory (Opacity).

Pre-screen all possible sources Pre-screening reduces the pool of possible suppliers to those that can satisfy the users demand. It involves evaluating the suppliers base. This reduces suppliers to those that can meet the users 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).

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 suppliers performance must be evaluated to determine whether it has truly satisfied the users 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:

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.

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. IBMs 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 organisations 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

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 organisations 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.

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 companys priorities managers need tools and this is information. This information will be supported by information str ategy 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 todays 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:

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Independent variables Knowledge of personnel

Dependent variable Effective adoption in of

Outcome ICT Effective and efficient

Rate of ICT application by application suppliers ICT tools availability ICT adoption costs process

procurement procurement proceedings

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.

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3.2

Research design 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

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approach involves the construction of an artificial environment within which relevant 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 researchers 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) ii) iii) iv) v) Observation method Interview method Through questionnaire Through schedule, and 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 investigators own direct observation without asking from the respondent (Kothari 2004).

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ii) Interview method 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 consumers 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 researchers 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.

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Date 7 to 22 February 27th to 3rd February 10th to 17th March 18th to 27th March 28th to 31st March 1 to 7 April 8 to 12 April 13 to 16 April 17th to 23rd April
th th th th st th th nd

Description of activities Preparation of research proposal

23rd to 26th February Supervisor consultation Review and submission of research proposal to the PSPTB Field work data collection Data analysis and interpretation Research report set up Supervisor consultation Review of supervisors comments Supervisor consultation 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 2 3 4 5 Total

Stationeries Transport Communication Internet services

200 000 140 000 15 000 12 000

Expenses during data collection in the field 40 000 407 000

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

Thank you for your cooperation.

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).

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

i) Computer ii) Papers (manually) iii) Both computer and papers

Which problems do you get from doing procurement activities manually?

Do you communicate with your suppliers through (tick were appropriate) i) Internet ii) Postal letters ( ) ( ) ( )

iii) Both internet and Postal letters

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5 6

Do you buy items from international suppliers?

Yes

No

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

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

(Tick where appropriate) i) ii) iii) iv) Knowledge of other staff on using computer Availability of computers and their tools in your council ( Costs of using computers Others (mention) ) ( ) ( )

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

What do you think can be done to increase the rate of computer and internet application in procurement process in your Council?

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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.

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Thank you for your cooperation.

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

i) Internet ii) Postal letters iii) Telephone iv) Both internet, postal letters and telephone

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

i) Receiving orders ii) Sending quotations iii) Advertisement .. ..

iv) Any other (specify) ..

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

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

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 for academic purpose only. You are requested to fill them with clarity and the answers you offer will be treated confidential

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Thank you for your cooperation. Name of department.

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 ( ) ( ( ( ) ) )

Which problems do you get from doing procurement activities manually?

Which advantages do you think your Council will gain if Internet and computers will be used effectively in procurement process?

What factors hinder you from using computers in the whole process of communicating with PMU?

Which ways do you suggest to improve application of computers and internets in procurement process in your council?

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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

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