FACTORS AFFECTING PROCUREMENT SERVICE QUALITY IN THE MANUFACTURING INDUSTRY IN KENYA: A CASE OF BIDCO OIL INDUSTRIES
Abstract
The researcher sought to establish the factors affecting procurement service quality among the manufacturing firms, with a case study of Bidco Oil Company. The general objective of the study was to establish the factors that affect procurement service quality. The study was guided by the following specific objectives; to assess the influence of supplier development on procurement service quality, to establish the impact of contract management on procurement service quality, to establish the impact of early supplier involvement on procurement service quality and lastly assess the influence of supplier relationship on procurement service quality, the researcher adopted descriptive survey design and used well-structured questionnaires to collect data. The researcher used a sample of 180 respondents that were purposively selected from the procurement department and other line departments that depend on procurement. The data was analyzed by the use of SPSSs and were presented using both descriptive and inferential statistics, frequency tables and percentages were used to present descriptive data while linear equation was used to show the relationship between variables and test hypothesis. It can be established from the study results that procurement service quality is relatively dependent on the kind of environment manufacturing firms are able to create between the firms themselves and their clientele. Whenever any manufacturing firm wants to improve on its procurement platform, then the customer input is very key especially in cases of new product development and launch. The study recommended that supplier relationship, proper execution of procurement contracts, supplier empowerment and involving suppliers in early product development is very crucial to the daily operation of each process of sourcing and hence improve quality of procurement service.
Key Words: Supplier Development, Contract Management, Supplier Involvement, Procurement Service Quality
CITATION: Bor, T., & Juma, D. (2019). Factors affecting procurement service quality in the manufacturing industry in Kenya: A case of Bidco Oil Industries. The Strategic Journal of Business & Change Management, 6 (2), 1531 –1541.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1194
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