Practices of Service Quality Dimensions in the Procurement Department: A Case of IPDC Finance

Abstract

Service quality is a critical factor in customer satisfaction, loyalty, and overall business success. It helps determine how well a service meets or exceeds customer expectations. The purpose of this study is to examine the service quality to improve service quality to understand and meet customer needs, foster continuous improvement, and foster a customer-centric culture at the procurement department of IPDC. The procurement department of IPDC Finance is a critical function that facilitates the efficient and cost-effective procurement of goods, services, and contracts in support of the company's operational and strategic goals. The department manages the procurement process from start to end, such as identification of needs, sourcing of suppliers, negotiating contracts, and on-time delivery of quality products and services. Key objectives of the procurement department are: Cost Efficiency: The department strives to achieve the most value for money without sacrificing quality or compliance with company policies. Supplier Relationship Management: Developing and cultivating close, collaborative relationships with suppliers to foster mutual growth and ensure long-term supply chain continuity. Risk Management: Foreseeing and minimizing risks in the procurement process, supply chain disruption, and inability to meet regulatory requirements. Compliance & Governance: Procurement operations should be in adherence to all internal policies, external legislation, and industry best practices. The procurement department operates through an open and structured approach that promotes accountability, efficiency, and sustainability. It collaborates with other departments within the organization to understand their requirements, align purchasing strategies, and manage vendor contracts to accomplish long-term business objectives. By its focus on strategic sourcing, tracking of supplier performance, and constant process enhancement, the procurement department makes a significant contribution to the overall operational effectiveness, cost control, and the company's overall mission to deliver sustainable financial services to clients of IPDC Finance. Based on the study and internship experience, several recommendations relating to the assurance of quality in the procurement process are forwarded.