Assessing the Effect of Procurement Planning on End User Requisitions for Operational Efficiency in Insurance Companies: Evidence from Zambia

Anastasia Nkhuwa and Chikusela Sikazwe
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Anastasia Nkhuwa: Graduate School of Business, University of Zambia
Chikusela Sikazwe: Graduate School of Business, University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 2

Abstract: Procurement planning plays a critical role in ensuring operational efficiency by aligning organizational needs, budgets, and procurement activities. Despite the existence of formal procurement plans, many organizations continue to experience deviations that negatively affect service delivery and cost control. This study examined the effect of procurement planning on end-user requisitions and operational efficiency within insurance companies in Lusaka, Zambia, using Madison Life Insurance Company as a case study. Guided by stakeholder theory, the resource-based view, and transaction cost economics, the study adopted an explanatory sequential mixed-methods research design. Quantitative data were collected from 90 respondents across procurement, finance, IT, and end-user departments and analyzed using descriptive and inferential statistics in SPSS, while qualitative data were obtained through semi-structured interviews and analyzed thematically. The findings reveal that although 85% of respondents confirmed the existence of formal procurement plans, adherence remains inconsistent, with urgent operational needs, budget constraints, and communication gaps driving off-plan requisitions. Procurement planning was found to significantly improve time management, cost savings, and resource allocation while reducing emergency purchases and transaction costs. The study concludes that procurement planning positively influences operational efficiency; however, its effectiveness depends on strengthened implementation, stakeholder coordination, and system integration. The study recommends automation of procurement processes, enhanced end-user training, and closer alignment between procurement planning and budgeting to improve compliance and efficiency.

Keywords: Procurement Planning; End-User Requisitions; Operational Efficiency; Insurance Companies; Stakeholder Engagement; Stakeholder Coordination (search for similar items in EconPapers)
JEL-codes: D23 H57 L25 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-26

DOI: 10.59413/ajocs/v7.i2.7

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