Abstract:
Despite the critical role played by procurement policy and procedures in Tanzania, still, some ineffectiveness and challenges are facing the performance of supply chain in Microfinance Banks in Tanzania. This paper assesses the impact of procurement policies and procedures on supply chain performance of Microfinance Banks in Tanzania and recommended actions to take for improving the supply chain performance in Microfinance Bank in Tanzania. Qualitative and Quantitative approaches were adopted and data were drawn from a stratified sample of 38 respondents through questioners. The study revealed that Microfinance Bank plays important roles in establishing proper procurement policies and procedures and execute them in performing the Microfinance Banks operations so that at the end improve the supply chain performance. Also, the findings on the impact of procurement policies and procedures on supply chain performance in Microfinance Bank in Tanzania showed that performance of Microfinance bank supply chain depends on Supplier selection management, tender evaluation, procurement ethical compliance and proper composition of procurement committee and responsibilities. Furthermore, the level of compliance of procurement policies and procedures were good. Finally, challenges facing supply chain performance in Microfinance Bank in Tanzania are Expensive to share procurement information across subunits, Top management interference makes it difficult to implement, Organizational culture makes it difficult to apply procedures, Changes in environment and market difficult to implement and difficult to integrate procurement policies and procedures and other Microfinance bank operations.