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The Effect of Procurement Planning and Implementation on Cost Reduction in the Health Sector

Author

Listed:
  • Kumwenda, Ngalaba

    (Graduate School of Business, University of Zambia)

  • Mutono Mwanza, Bupe Getrude

    (University of Zambia)

Abstract

Public procurement in the health sector represents a critical lever for cost containment and service delivery efficiency. Yet, despite formal planning frameworks, developing countries persistently face budget overruns, emergency procurement, and supply chain disruptions. This study examined the effect of procurement planning and implementation on cost reduction at the Ministry of Health Headquarters in Zambia, addressing a significant empirical gap in understanding how planning translates into financial outcomes. A convergent parallel mixed-methods design was employed, collecting quantitative data from 65 respondents (85% response rate) using structured questionnaires and qualitative data through semi-structured interviews with 15 key informants. Descriptive statistics, correlation analysis, and multiple regression were used to analyze quantitative data, while thematic analysis was applied to qualitative data. The findings reveal a pronounced planning-implementation gap: while 78.4% of respondents confirmed documented procurement processes exist, 69.0% reported frequent emergency procurement and 65.5% confirmed common budget overruns. Regression analysis demonstrated that procurement planning factors collectively explain 50% of variance in budget overruns (R² = 0.50, F = 20.62, p

Suggested Citation

  • Kumwenda, Ngalaba & Mutono Mwanza, Bupe Getrude, 2026. "The Effect of Procurement Planning and Implementation on Cost Reduction in the Health Sector," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(3).
    • Handle: RePEc:cwk:ajocsl:2026-010
    DOI: 10.59413/ajocs/v7.i3.39
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    Keywords

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    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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