Assessing the Effect of Procurement Planning on End User Requisitions for Operational Efficiency in Insurance Companies: Evidence from Zambia
DOI:
https://doi.org/10.59413/ajocs/v7.i2.7Keywords:
Procurement Planning, End‑User Requisitions, Operational Efficiency, Insurance Companies, Stakeholder Engagement, Stakeholder CoordinationAbstract
Procurement planning plays a critical role in ensuring operational efficiency by aligning organizational needs, budgets, and procurement activities. Despite the existence of formal procurement plans, many organizations continue to experience deviations that negatively affect service delivery and cost control. This study examined the effect of procurement planning on end-user requisitions and operational efficiency within insurance companies in Lusaka, Zambia, using Madison Life Insurance Company as a case study. Guided by stakeholder theory, the resource-based view, and transaction cost economics, the study adopted an explanatory sequential mixed-methods research design. Quantitative data were collected from 90 respondents across procurement, finance, IT, and end-user departments and analyzed using descriptive and inferential statistics in SPSS, while qualitative data were obtained through semi-structured interviews and analyzed thematically. The findings reveal that although 85% of respondents confirmed the existence of formal procurement plans, adherence remains inconsistent, with urgent operational needs, budget constraints, and communication gaps driving off-plan requisitions. Procurement planning was found to significantly improve time management, cost savings, and resource allocation while reducing emergency purchases and transaction costs. The study concludes that procurement planning positively influences operational efficiency; however, its effectiveness depends on strengthened implementation, stakeholder coordination, and system integration. The study recommends automation of procurement processes, enhanced end user training, and closer alignment between procurement planning and budgeting to improve compliance and efficiency.
Downloads
References
Arredondo, C. R. & Tanco, J. A. A., 2021. Supply Chain Management. Some reflections to improve its influence in business strategy.
Bailey, P., farmer, D., Crocker, B. & Jessop, D., 2018. Procurement Principles and Management. 12th ed. s.l.:Pearson.
Bals, L. & Turkulainen, V., 2017. Achieving efficiency and effectiveness in Purchasing and Supply Management. Journal of Purchasing and Supply Management., 23(4).
Bals, L., & Turkulainen, V. (2017). Achieving efficiency and effectiveness in purchasing and supply management: Organization design and outsourcing. Journal of Purchasing and Supply Management, 23(4), 256–267. https://doi.org/10.1016/j.pursup.2017.06.003
Bals, L., Schulze, H., Kelly, S. & Stek, K., 2019. Purchasing and supply management (PSM) competencies: Current and future requirements, Journal of Purchasing and Supply Management.
Barney, J. B., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp. 99-120.
Creswell, J. & Creswell, J., 2017. Research design: Qualitative, quantitative, and mixed methods approach. s.l.:Sage Publications.
Croom, S. & al, e., 2018. Impact of social sustainability orientation and supply chain practices on operational performance. International Journal of Operations & Production ..
Crotty, M., 1998. The foundations of social research: meaning and perspective in the research process. 1st ed. London: Sage Publication.
Denzin, N. & Lincoln, Y., 2011. The sage handbook of qualitative research .. s.l.:Thousand Oaks.
Farrington, K. & Leiyan, K., 2016. Procurement Process and organizational performance among state corporations..
Freeman, R., Gadde, P. & E, S. L., 1984. Strategic management: A stakeholder approach.. s.l.:Pitman.
Guba, E. G. & Lincoln, Y. S., 1994. Competing paradigms in qualitative research. Handbook of qualititave research, 105(2), pp. 163 - 194.
IAZ, 2022. Idustry Report, s.l.: Insurers Association of Zambia.
Institute, S. R., 2022. World Insurance Report; 2022, Zurich : Swiss Re Institute Sigma, ..
Kihara, R. M., & Ngugi, G. K. (2013). Role of procurement planning on performance: A case at Nyayo Tea Zones Development Corporation. International Journal of Social Sciences and Entrepreneurship, 1(5), 714–727. [https://ou...essageItem | Outlook]
Leenders, M. R., Fearon, H., Flynn, A. & Johnson, P., 2018. Purchasing and supply management. 16th ed. s.l.:McGraw-Hill Education.
Lysons, K. & Farrington, B., 2020. Procurement and Supply Chain Management. 10th ed. London: Pearsons.
Mitchel, R., Agle, B. & Wood, D., 2015. Stakeholder theory: Impact and Prospects. s.l.:Edward Elgar Publishing.
Monczka, R. M., Handfield, R., Giunipero, L. & Patterson, J. L., 2020. Purchasing and Supply Chain Management. 7th ed. South-Western: Cengage Learning.
Monczka, R., Handfield, R., Giunipero, L. C. & Patterson, J., 2021. Purchasing and supply chain management. s.l.:Cengage Learning.
Naylor, J., 2012. Introduction to Procurement Management. 3rd ed. s.l.:S.I Prentice Hall.
Obura, C. O. (2020). Procurement planning: The principle of sound balance between procurement control and achieving value for money. International Academic Journal of Procurement and Supply Chain Management, 3(2), 19–27. https://www.iajournals.org/articles/iajpscm_v3_i2_19_27.pdf [scholar.google.com]
Oenga, N. O., Thogori, M., & Wabwire, J. M. (2022). Influence of procurement plan on the effectiveness of procurement process among public universities in Eastern Region, Kenya. International Journal of Economics, Business and Management Research, 6(2). https://doi.org/10.51505/IJEBMR.2022.6207 [scispace.com]
Onchiri, B. M., & Kwasira, J. (2016). Influence of end users involvement in procurement decision making on purchasing performance at Kenya Police College, Kiganjo. Journal of Investment and Management, 5(6), 115–121. https://doi.org/10.11648/j.jim.20160506.14 [article.sc...encepg.com]
Onyango, C. J., 2012. effects of Procurement Planning on Institutional Performance: A case study of Mombasa Law Court. International Journal of Science and Research, 358(3), pp. 2319-7064.
PPADA, 2012. Public Procurement and Disposal General Manual (PPADA). s.l., Government Press.
Samuel, A., 2012. "Design-Build Procurement Approaches". In Shorney-Darby, Holly. Design-build for Water and Wastewater Projects. Public Procurement and Disposal General Manual (PPADA); s.l.: American Water Works Association.
Schapper, R., 2012. Benchmarking in public procurement. An International Journal, 15(6), pp. 782-793.
Slack, N., Brandon-Jones, A. & RJ, A., 2018. Operations Management. 8th ed. s.l.:Pearson.
Torvinen, H., & Ulkuniemi, P. (2016). End-user engagement within innovative public procurement practices: A case study on public–private partnership procurement. Industrial Marketing Management, 58, 58–68. https://doi.org/10.1016/j.indmarman.2016.05.015 [oulurepo.oulu.fi]
Udoba, B. N., & Mwalukasa, B. E. (2025). The effects of procurement planning on public procurement performance. Asian Journal of Management Entrepreneurship and Social Science, 5(1). [https://ou...essageItem | Outlook]
Walker, D., 2013. Procurement systems: A cross-industry project management perspective, London.
Williamson, O. E., 1979. Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22(2), pp. 233- 261.
Yornu, I., Yamoah, L. E. & Dadzie, E. B., 2021. Evaluating how procurement planning affects cost reduction. African Journal of Procurement, Logistics & Supply Chain Management, 4(2), pp. 15-46.
Zacharia, M. S. & Smith, Z. G. &., 2019. Defining Supply Chain Management: In the Past, Present, and Future. Journal of Business Logistics.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Anastasia Nkhuwa, Dr. Chikusela Sikazwe (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
