CHAPTER ONE
GENERAL INTRODUCTION
This chapter covers the introduction which Is segmented into the following the parts: background
to the study, statement of the problem, research questions, objectives, hypothesis, scope and
delimitation of the study, significant of the study, operational definition of terms, organization of
the study and end by the chapter synthesis
1.1 Background to the Study
Procurement practice are considered as the procedures and guidelines or means of acquiring
goods, services and work at the best possible cost to meet organizations need in terms of quality,
quantity and location (Akech,2005). Procurement also extends to the ultimate disposal of
property at the end of its useful life (Waters, 2004), Sound public procurement policies and
practices are among the essential elements of good governance (Kippra, 2006). The processes of
procurement should uphold integrity by ensuring there are no malpractices, informed decision
making which requires public bodies to base supplier selection on accurate information and
ensure that expectations of procurement are being achieved. Procurement practices are vital
functions in the public sector, since procurement process is generally a critical part of open
spending in organizations. Carr and Smeltzer (1997) states that procurement practices comprise
of the actions taken by the purchasing organization to navigate and integrate its performance in
order to increase productivity by reducing cost and time. Procurement is the practice of selecting
vendors, strategic vetting, setting up payment terms, selection, negotiation of contracts and actual
purchasing of goods (Weele, 2010). Lim (2014) describes procurement as a process which
entails acquiring (procuring) goods, services and work that is vital to an organization.
Worldwide, public procurement has become an issue of concern and debate, and has been subjected to reforms restructuring. rules and regula (Kobegg. Nkule Mhero. 2018).The linkage of
procurement to organizational performance in particular, makes the embracing of best practices
important to present organizational success. Procurement is found to be practiced in many
industries around the world (Hussein &Shale, 2014). Massive changes are occurring in the
operating models and marketing strategies of manufacturing sector organizations. Procurement
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greatly impacts how an organization achieves its objectives. According to Leenders et al (2008),
purchasing adds value to the organization. Carr and Pearson (2002) states that procurement
practices comprises of the actions taken by the purchasing organization to navigate and integrate
its performance in order to increase productivity by reducing cost and time. Procurement is the
practice of selecting vendors, strategic vetting, setting up payment terms, selection, and
negotiation of contracts and actual purchasing of goods (Weele, 2010). Lim (2014) describes
procurement as a process which entails acquiring (procuring) goods, services and work that is
vital to an organization.
The integration of Just-in-Time (JIT) principles with e-procurement systems represents a
significant evolution in supply chain and procurement management. Originating in post-war
Japan, JIT was first implemented by Toyota to reduce waste and improve production efficiency
by receiving goods only as they were needed in the manufacturing process (Investopedia, 2025).
This lean philosophy gradually expanded beyond manufacturing into procurement, where it emphasized timely sourcing, minimal inventory, and close supplier coordination.
With the rise of digital technologies in the late 1990s and early 2000s, traditional procurement
methods began to shift toward e-procurement—the use of internet-based platforms to manage
purchasing activities. This digital transformation enabled real-time communication, automated
workflows, and data-driven decision-making, laying the groundwork for the fusion of JIT and eprocurement strategies (Neef, 2001; Kalakota & Robinson, 2001).
The convergence of JIT and e-procurement has been particularly transformative for e-commerce
firms, which operate in fast-paced, demand-driven environments. These firms rely on JIT eprocurement to reduce inventory holding costs, improve order accuracy, and respond swiftly to
market fluctuations. For example, by leveraging real-time sales data and supplier integration, ecommerce platforms can trigger automated replenishment only when stock levels reach a
predefined threshold—ensuring efficiency without overstocking (Infosys BPM, 2024).
However, the model is not without risks. The COVID-19 pandemic exposed vulnerabilities in
overly lean systems, where disruptions in global supply chains led to stockouts and delayed
deliveries. This has prompted many firms to adopt hybrid models that balance JIT efficiency
with strategic safety stock (Ware2Go, 2025).

Despite these challenges, the synergy between JIT and e-procurement continues to evolve.
Emerging technologies such as AI, blockchain, and predictive analytics are enhancing demand
forecasting, supplier visibility, and procurement agility—making JIT e-procurement a
cornerstone of modern supply chain strategy, especially in the e-commerce sector (de Sousa et
al., 2014).
Procurement practice is an area that can be improved to further contribute to organizational
performance. Organizations tend to choose procurement procedures that are familiar to them;
they should instead choose the ones most suited and most beneficial to their organizations
success. Narasimhan and Kim (2002), states that there has been increased pressure for
purchasing integration. Purchasing integration links purchasing practices to organizational
performance Gattorna, 2006). The direct link of operational efficiency and supply chain to
organizational performance therefore means that the adoption of procurement practices is crucial
to organizational success. Consolidation of the entire procurement process leading to the
implementation of procurement practices such as, green purchasing, just in time delivery (JIT),
total quality management (TQM) and e-procurement is necessary so as to boost the overall
organizational performance. Streamlined procurement systems lead to efficiency and increases
the confidence of employees, customers and stakeholders of the organization.
Shifting away from traditional purchasing and moving into modern and more efficient
procurement practices leads to continuous improvement and benchmarking. This is where an
organization measures itself against the leading organizations in its class. Procurement is no
longer a process but a strategic function in the organization, it reduces cost and achieves
maximum savings for the organization. Organizations should always benchmark against the ‗best
in class‘ and implement continuous improvement in its processes (Guth, 2010). Some of the
procurement practices that organizations can engage in include: commitment to green purchasing, commitment to just in time delivery, commitment to total quality management and eprocurement. Organizations must broaden their view of productivity from the predictable
company oriented view to a dual company – customer perspective.
Procurement practices leads to improvement in information and material flows and are viewed as
strategic functions that work to improve the profitability of an organization, identify better
sources of supply and reduce cost. Organizational performance is improved when information
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technology is implemented in procurement. Therefore, GLOTELHO should embrace the use of
procurement practices as they focus on achieving a competitive advantage. Public procurement
has become an issue to of concern worldwide and has been subjected to reforms, restructuring,
rules and regulations (Kabega et al., 2016). Carr and Smeltzer (1997) state that procurement
practices comprise the actions taken by the purchasing organization to navigate and integrate its
performance to increase productivity by reducing cost and time. The linkage of procurement to
organizational performance, in particular, makes the embracing of best practices important to
present organizational success. Various public institutions in developed and developing countries
have instituted purchasing reforms that involve laws and regulations (Kabega et al., 2016).
Effective procurement requires the utilization of sound business practices that maximize value to
the organization through the acquisition of goods and services. This follows the adage that the
purchasing departments role is to deliver the right material or service in the right amount ti the right place at the right time and the right price (Sollish and Somanik, 2005). The application of
appropriate procurement practices strategically has the potential impact on the performance of
organizations and national economies in general (Keith et al., 2016). However, Singhal and
Hendricks (2011) observed that disruptions in purchasing practices at any level devastate
organizational performance.
The Just-in-Time (JIT) procurement strategy emerged as a transformative approach to inventory
and supply chain management, aiming to minimize waste, reduce holding costs, and enhance
operational efficiency. Its origins can be traced back to post-World War II Japan, where Toyota
pioneered the Toyota Production System (TPS). This system emphasized lean manufacturing,
continuous improvement (Kaizen), and the elimination of non-value-adding activities
(Thistlewood, 2024). The JIT philosophy was designed to ensure that materials and components
arrived exactly when needed, thereby reducing the need for large inventories and storage
facilities (Wikiaccounting, 2024).
By the 1970s, Toyota‘s success with JIT attracted global attention, and by the 1980s, Western
manufacturers began adopting the model, rebranding it as lean manufacturing (Collins, 2021).
Over time, JIT evolved beyond manufacturing into procurement and logistics, becoming a
strategic tool for enhancing supply chain responsiveness and cost-effectiveness.

In the digital era, JIT has found renewed relevance in e-commerce, where speed, flexibility, and
customer satisfaction are paramount. E-commerce firms have leveraged JIT to reduce inventory
carrying costs, optimize warehouse space, and respond swiftly to fluctuating consumer demand
(Shahikian, 2024). For instance, JIT enables online retailers to replenish stock based on real-time
sales data, minimizing overstock and obsolescence (Infosys BPM, 2024). However, this model
also introduces risks—such as stockouts and supply chain disruptions—especially during global
crises like the COVID-19 pandemic, which exposed vulnerabilities in overly lean systems
(Ware2Go, 2025).
Despite these challenges, JIT remains a cornerstone of agile supply chain strategies in ecommerce, particularly when paired with robust demand forecasting, supplier integration, and
digital inventory systems. Its evolution reflects a broader shift toward data-driven, customercentric procurement models that prioritize efficiency without compromising responsiveness.
The advancement of Just-In-Time (JIT) and e-procurement practices has reshaped procurement
and supply chain strategies globally, with varying degrees of adoption and impact across regions
such as Africa and Cameroon.
Globally, JIT has evolved from its origins in post-war Japan—most notably through Toyota‘s
lean manufacturing system—into a widely adopted strategy across industries. Its core principle
of minimizing inventory and aligning production with real-time demand has been enhanced by
digital technologies such as AI, IoT, and blockchain. These tools have improved supply chain
visibility, predictive analytics, and supplier coordination, making JIT more resilient in the face of
global disruptions (Elixirr, 2025). However, the COVID-19 pandemic exposed vulnerabilities in
overly lean systems, prompting firms to balance JIT with Just-in-Case (JIC) strategies to mitigate
risk (Alibaba, 2024).
In Africa, the adoption of JIT has been more gradual, often constrained by infrastructural
limitations, supplier unreliability, and volatile logistics networks. Nonetheless, some
manufacturing firms—particularly in Kenya and South Africa—have begun integrating JIT principles to improve operational efficiency and reduce waste. For instance, studies in Nairobi‘s
manufacturing sector show that JIT procurement positively influences organizational
performance by reducing lead times and inventory costs (Mutua et al., 2021). However, the
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continent still faces challenges such as inconsistent supply chains and limited digital integration,
which hinder full-scale JIT implementation (McKinsey, 2023).
Cameroon‘s engagement with JIT is still in its early stages, with limited empirical
documentation. Most firms operate with buffer inventories due to supply chain unpredictability.
However, there is growing awareness of lean practices, especially among firms in Douala‘s
industrial zones. The broader shift toward digital procurement systems may eventually support
JIT adoption by improving supplier coordination and real-time inventory tracking.
On the other hand, e-procurement has seen significant global advancement, driven by cloud
computing, AI, and mobile platforms. Globally, organizations have transitioned from manual
procurement to integrated digital platforms that enhance transparency, reduce transaction costs,
and streamline supplier management (McKinsey, 2024). E-procurement is now viewed as a
strategic function, contributing to sustainability, risk mitigation, and innovation (WNS
Procurement, 2025). 

In Africa, e-procurement reforms have gained momentum, particularly in public sector
procurement. Countries like Rwanda, Nigeria, and Uganda have implemented electronic
government procurement (e-GP) systems to combat inefficiency and corruption. Despite
challenges such as limited infrastructure and resistance to change, these systems have improved
transparency and accountability (Open Contracting Partnership, 2022).
Cameroon has made notable strides with the launch of the Cameroon Online E-Procurement
System (COLEPS), supported by the South Korean government. This platform aims to digitize
all public procurement processes by 2025, reducing face-to-face interactions and enhancing
efficiency (Business in Cameroon, 2024). However, adoption has been slow, with only a fraction
of contracts processed digitally due to technical constraints and limited stakeholder engagement
(Nkafu Policy Institute, 2024). Nonetheless, the initiative marks a significant step toward
modernizing procurement in Cameroon and could lay the groundwork for broader private sector
adoption.
Organizational performance, as a term, can be used in three-time sense, which are the present,
past, and the future according to Leiyan (2016). Therefore, organizational performance involves
what an organization have already completed, what it is doing right now and activities that it does in preparing for its future needs, (Leiyan, 2016). In addition, oluwaseyi (2016) states that
organizational performance can be described as the indicator of effectiveness and efficiency of
an organization which include productivity, cycle time, cost reduction and regulatory
compliance. Mwangi (2014) suggested that many organizations regard profitability as the
ultimate performance indicator. But in actual fact, it is not the only indicator of performance.
However, in this research, the organizational is going to be determined using cost reduction,
revenue collection and the provision of quality services. The direct link of operational efficiency
and supply chain to organizational performance therefore means that the adoption of
procurement practices is crucial to organizational success. Consolidation of the entire
procurement process leading to the implementation of procurement practices such as, green
purchasing, just in time delivery (JIT), total quality management (TQM) and e-procurement is
necessary so as to boost the overall organizational performance. Streamlined procurement
systems lead to efficiency and increases the confidence of employees, customers and
stakeholders of the organization. Shifting away from traditional purchasing and moving into
modern and more efficient procurement practices leads to continuous improvement and
benchmarking. This is where an organization measures itself against the leading organizations in
its class. Procurement is no longer a process but a strategic function in the organization, it
reduces cost and achieves maximum savings for the organization. Organizations should always
benchmark against the ‗best in class‘ and implement continuous improvement in its processes
(Guth, 2010). Some of the procurement practices that organizations can engage in include:
commitment to green purchasing, commitment to just in time delivery, commitment to total
quality management and e-procurement. Organizations must broaden their view of productivity
from the predictable company-oriented view to a dual company -customer perspective.
1.2 Statement of Problem

An organization‘s purchasing department remains under pressure to achieve financial savings
through efficient and coordinated service delivery. Organizations are nowadays increasing their
professionalism and efficiency in the procurement process. procurement practices are strategic
and are intended to increase the organizational productivity, identify better sources of supply and
raw material prices and cost (Hassanzadeh and Jafarian, 2010) Procurement is deemed to be part
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of principles of management of plans that focus on effective achievement of performance
efficient in public organization‘s as well as growth of the nation.
In practice, when procurement process is well planned and implemented, it can act as an
economic instrument for guaranteeing national development (Keith et. al, 2016). Many of the
third world countries are challenged by dynamic procurement revolution and this gives them
difficulty on the functioning of procurement and performance together with the inside and
outside dealings (Wambui, 2013). The Procurement practices are fragile and predisposed to
regular to discontinuities (Jeppesen, 2010).According to (Karanja and Kiare, 2015) indicates that
the vulnerabilities in the public and private sector evidenced in the erratic shedding and reemployment of staff when faced with downstream and upstream linkage discontinuities, affect
organizational performance. According to (Ejura and Augustine, 2014) noted that the major
problem in the current procurement industry is not on the limited regulation models but because of noncompliance and pitiable execution process.
Regardless of the effort by the private and public organizations in Cameroon to improve
performance of the procurement function, poor implementation and non-compliance to
procurement regulations still pose as key challenges (Hussein and Shale, 2014). They are
burdened with delays and occasional inability to deliver the goods to the designated
organizations (World Pank 2010). This problem has precipitated to a decline of
procurement/supply performance of enormous public organizations (Schiel Horn and Vos2011).
A company like GLOTELHO faces challenges such as inadeguate needs analysis , inadeguate
contract management , poor supplier selection ,unorganized supplier relationship management
and supply chain disruption . with this problems identified, it makes it difficult for the
procurement of GLOTELHO to fully function effectively.
1.3. Research Questions
1.3.1 Main Research Questions
How does procurement practices affect the performance of GLOTELHO?
1.3.2 Specific Research Questions
1. How does Just-in-Time procurement strategy affect the performance of GLOTELHO?

3. What are the challenges faced in the implementation of procurement practices?
1.4 Research Objectives
1.4.1 Main Research Objectives
To evaluate the procurement practices that affects the performance of GLOTELHO
1.4.2 Specific Research Objectives
1. To examine the effect of Just-in-Time procurement strategy on the performance of
GLOTELHO
2. To evaluate the effect of e-procurement on the performance of GLOTELHO.
3. To examine the challenges GLOTELHO faces in implementing procurement practices.