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

Ngalaba Kumwenda and Bupe Getrude Mutono Mwanza
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Ngalaba Kumwenda: Graduate School of Business, University of Zambia
Bupe Getrude Mutono Mwanza: University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 3

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

Keywords: Public Expenditure; Budget Execution; Supply Chain Efficiency; Purchasing Strategy; Execution; Expense Minimization; Sourcing Efficiency; Health Sector (search for similar items in EconPapers)
JEL-codes: H57 I18 M11 O55 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsl:2026-010

DOI: 10.59413/ajocs/v7.i3.39

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