Demand planning’s, procurement processes and the performance in the agency of the Department Of Transport.

Abstract

Abstract The study focused on demand planning, procurement processes and the performance in the agency of the Department of Transport in Gauteng province, South Africa. Demand planning is the first most important step in business planning. The census approach method was used, whereby all staff members at various levels and experiences within the agency had an opportunity to participate in this study. Data was collected using a questionnaire developed specifically for this study by the researcher. Ninety-two percent of staff members were kind to spend fifteen minutes of their time and responded to the questionnaire. The results of the study using quantitative and qualitative analysis methods revealed that demand planning has a significant impact on procurement processes and performance. The impact is positive if the demand planning is conducted properly, it improves procurement processes, transparency within procurement, cost effective and reduces lead time. The study further revealed that procurement plan is a critical function within the procurement process as it guides the motion of the entire acquisition process, this finding corroborated with literature. The study recommended that procurement and supply chain management policy makers introduce demand planning within their institutions, which must be conducted on a yearly basis. The demand planning must be informed by the strategic objectives of the organisation. The study further recommended that demand planning must involve all business units within the organisation. People must participate in order to have effective demand planning, therefore, the involvement of top management in the demand planning and procurement is significant in ensuring adherence and commitment to the plan.