Abstract:
Purpose – This study aims to examine the role of supplier selection and supplier monitoring in public
procurement efficiency in terms of cost reduction in Tanzania.
Design/methodology/approach – A structured questionnaire was used to collect cross-sectional survey
data from 179 public procuring entities in Tanzania. Structural equation modelling (SEM) was used to analyse
the collected data.
Findings – The findings revealed that supplier selection and supplier monitoring are positive and
significant predictors of public procurement efficiency in terms of cost reduction.
Research limitations/implications – This study was conducted in Tanzanian public procurement
contexts, so generalisations should be made with caution. Also, this study collected cross-sectional data; other
studies may consider longitudinal data.
Practical implications – This study provides procurement practitioners with insights into selecting the
proper suppliers and embracing supplier monitoring to achieve procurement efficiency in terms of cost reduction.
Originality/value – This study examines the effects of supplier selection and supplier monitoring on
procurement cost reduction as a measure of public procurement efficiency in the Tanzanian context.
Consequently, it provides empirical evidence of supplier management practices in the public procurement context.
