Collaborative Procurement Practices in Public Organizations: A Review of Forms, Benefits and Challenges

In: Ghana journal of development studies, Volume 20, Issue 1

Abstract

This study reviewed forms, benefits, and challenges of collaborative procurement practice that could be applied in public organizations in developing countries like Tanzania. The study is exploratory and descriptive in nature under which a systematic literature review was conducted to examine the various forms, benefits, and challenges of collaborative procurement. In this approach, information was gathered from the existing body of literature on collaborative procurement and cooperative purchasing practices. Based on the main results, the study ascertained that piggy-backing groups, third-party groups, professional networks, and project groups are the main four forms of collaborative procurement practices that may be applicable in public organizations. Results suggested that organizations that engage in collaborative procurement practices enjoy several benefits, including minimum prices, low transaction costs, high-quality products, reduced workloads, and minimal supply risks. However, demand heterogeneity can complicate the procurement process, and inflexibility and control of collaborative procurement activities are major challenges for implementing collaborative procurement practices. Despite these challenges, the study concluded that collaborative procurement practices can be beneficial in public organizations in developing countries like Tanzania. The study recommends that collaborative members establish clear guidelines and agreements for collaborative procurement practices to ensure successful implementation.