The Influence of Cost Reduction Strategy on Organization Performance at Duwasa Central Zone-Dodoma.

Abstract

Cost reduction strategy is one of the crucial mechanisms in which both public and private organization strive to install performance, now this study is going to assess the effect of cost reduction strategy on organizational performance at DUWASA, Case study design was used in this study with sample size of 75 respondents, the sample comprised with people dealing with procurement and other services at DUWASA who were interviewed so as to obtain in-depth information. The study findings revealed that, strategic procurement practices help organization to reduce all cost associated in acquiring goods work or services in the organization minimization additionally waste elimination, resource allocation and cost minimization has a positive significance influence to organization performance. The researcher recommends that the Government should put more emphasize on application of strategic procurement In conclusion Dodoma should therefore emphasize the implementation of cost reduction strategies in public procurement while working on improving its weak areas specifically by looking on the key factors for quality of requirement such as quality and other deliverable terms and condition that will affect the performance. Then it is advised that organization should identify the weak points specifically market capability analysis as part of procurement management to assess the ability of the market to meet its required goods and services in the right quantities and quality in the right timings. Also DUWASA should work in hand with government to enact policies that put more emphasis on the application of the strategic procurement practices on the public sectors and fasten them accordingly as this directly affects their procurement performance.