The impact of poor procurement planning on the organization operations: the case of precision air services Limited

Procurement planning is one of the aspects that contribute significantly to the profitability of the organizations. In recent years, many organizations have revealed bigger losses and sometimes forced to close their business operations mainly due to bad procurement practices. The Government insists its institutions to have procurement plans, as may be depicted in procurement Act of year 2004. Procurement planning assists the institutions and organizations on good allocation of scarce resources that are available. In recent years there has been complains in different news media on over and under procurement of working tools and materials in different organizations and government institutions, there has been the motive behind this study. The aim of this study was to identify factors that contributed to poor procurement planning, and their impacts on organization operations. The study was conducted at Precision Air Services Limited, where employees who work in different departments were the respondents. The survey methodology was need to collect the quantitative data using simple random sampling and 40 respondents were contacted in total. The research findings revealed that, lack of qualified staff and procurement planning had an impact on the procurement performance of the Precision Air Services Limited. The study recommends that Precision Air Services Limited should recruit qualified staff to handle the procurement activities. It should also train the current staff who are involved in the supply chain and introduce the procurement policy and over hall the whole procurement process in order to attain better performance.