Analysis of challenges faced by procurement of goods, work and services using centralized procurement: The case of a five-star hotel in Malawi - Umodzi park & resorts

Abstract

The research questions in this paper seek to address the challenges faced by Umodzi Park & Resorts in their centralized procurement system in order to bring efficiency and effectiveness to their day-to-day operations. This paper used empirical and explanatory research methods, which included the collection of primary data through a questionnaire, interviews with procurement personnel, and observations from procurement documents that provided the guidelines and process of procurement. A secondary source of data comes from written and electronic sources. This survey looks at the effectiveness of the centralized procurement system at Umodzi Park & Resorts by comparing the centralized model to the decentralized model and the centralized model to the combined centralized and decentralized models. The sampling type used is quota sampling, which only works with procurement personnel from the head office and its other two branches in Malawi. This study concludes with a recommended combined system of centralized and decentralized procurement and guidelines to follow for a successful procurement system.