DETERMINANTS OF IMPLEMENTATION OF PROCUREMENT MANAGEMENT PRACTICES IN MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
The objective of the study was to examine the influence of procurement management practices on performance of manufacturing firms in Nairobi County, Kenya. The target population of the study was 400 manufacturing firms. The study used 80 respondents and data was collected through the use of questionnaires. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. The quantitative data was analyzed with help of SPSS version 24. The study adopted a regression analysis at .05 level of significance to determine strength and direction of the relationship of the variables under study. It was notable that there exist strong positive relationship between the indepedent variables and dependent variable. The top and lower level employees should be involved in formulation and development of the procurement plans so as to make the process of implementation easier and acceptable by all employees. The study recommended for correct forecasting methods thus reduction of stock outs in the organization. The forecasting accuracy can lead to improvement and related observations results in inventory markdowns. The study recommended that there is need to enhance supplier outsourcing that allows a company to adequately select its vendors and negotiate the best prices for goods and services that it purchases. The study recommended that there is need to enhance logistics management such as turning non-core functions over to external suppliers which can enable companies to leverage their resources, spread risks and concentrate on issues critical to survival and future growth. The study identified that the most important reasons why companies outsource their logistics functions is the need to decrease the number of warehouses, vehicles and excess inventories and to reduce shrinkage, and labor costs.
Key Words: Supplier, Material, Logistics, Warehouse, Manufacturing Firms
CITATION: Wanga, J. O., & Moronge, M. (2019). Determinants of implementation of procurement management practices in manufacturing firms in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 300 – 316.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1394
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