Collaborative Procurement Practices in Public Organizations: A Review of Forms, Benefits and Challenges

Abstract

This study reviewed forms, benefits, and challenges of collaborative procurement practice that could be applied in public organizations in developing  countries like Tanzania. The study is exploratory and descriptive in nature under which a systematic literature review was conducted to examine the  various forms, benefits, and challenges of collaborative procurement. In this approach, information was gathered from the existing body of literature on  collaborative procurement and cooperative purchasing practices. Based on the main results, the study ascertained that piggy-backing groups, third-party  groups, professional networks, and project groups are the main four forms of collaborative procurement practices that may be applicable in public  organizations. Results suggested that organizations that engage in collaborative procurement practices enjoy several benefits, including minimum prices,  low transaction costs, high-quality products, reduced workloads, and minimal supply risks. However, demand heterogeneity can complicate the  procurement process, and inflexibility and control of collaborative procurement activities are major challenges for implementing collaborative  procurement practices. Despite these challenges, the study concluded that collaborative procurement practices can be beneficial in public organizations in developing countries like Tanzania. The study recommends that collaborative members establish clear guidelines and agreements for collaborative  procurement practices to ensure successful implementation.