Effect of Procurement Planning on the Performance of Medical Supply Chain: A Case Study of Rwanda Medical Supply (RMS) Ltd
Didier Habiyaremye and Désire Nimpano
University of Kigali
Email: habiyaremyediddy@gmail.com
Abstract: This study examined the effect of procurement planning on the performance of the medical supply chain at Rwanda Medical Supply (RMS) Ltd. The study focused on budget allocation as an important component of procurement planning and assessed its effect on the performance of medical supply at RMS Ltd. A descriptive and correlational research design was adopted using quantitative and qualitative approaches. The target population comprised 228 respondents, from whom a sample of 146 respondents was selected using Yamane’s formula at a 5% margin of error. Data were collected through structured questionnaires, semi-structured interviews, and documentary review. Quantitative data were analysed using descriptive statistics, Pearson Product Moment Correlation, and simple linear regression, while qualitative data were analysed thematically using IBM SPSS Statistics Version 26. Out of 146 questionnaires distributed, 127 were successfully returned, representing a response rate of 86.90%. The findings revealed that budget allocation contributes positively to medical supply performance through adequate financial resources, alignment of budgets with procurement requirements, timely release of funds, effective communication between Finance and Procurement, and flexibility in reallocating funds for urgent supply needs. The overall mean of 3.83 indicated a high level of agreement regarding budget allocation. Pearson correlation analysis revealed a very strong positive and statistically significant relationship between budget allocation and medical supply performance (r = .979, p < .001). Regression analysis further showed that budget allocation significantly affected medical supply performance, explaining 95.8% of its variation (R² = .958, p < .001). The study concluded that effective budget allocation is important for improving medical supply performance. It recommends strengthening budget planning, ensuring timely approval and release of funds, improving coordination between Finance and Procurement, and allowing appropriate flexibility for urgent supply needs.
