ROLE OF SUPPLIER EVALUATION ON PROCUREMENT PERFORMANCE IN STATE CORPORATION IN KENYA: A CASE OF GEOTHERMAL DEVELOPMENT COMPANY
Abstract
Selecting and maintaining competent suppliers is very essential in procurement. However, many factors affect a firm's ability to choose the right supplier. Little has been done to establish the role of supplier evaluation on procurement performance in state corporation particularly Geothermal Development Company. This study was undertaken with the main objective being to establish the role of supplier evaluation on procurement performance in State Corporation in Kenya: a case study of Geothermal Development Company. The study was guided by two variables; supplier’s finances and quality management. A structured questionnaire was used to collect information on the role of supplier evaluation on procurement performance in GDC. The research was carried out through a descriptive research survey design. In this study the researcher used stratified random sampling where 30% of the target population was representative of the entire population to be studied. The data from the collected questionnaires was coded and entered into the computer using statistical packages for social sciences (SPSS version 21) for analysis. The study findings revealed that suppliers’ finances and quality management had a significant positive role on procurement performance in Geothermal Development Company. Based on the study findings, the study concluded that suppliers’ finances and quality management played a role on procurement performance in State Corporations in Kenya. Recommendations of the study included; assessment of supplier financial capability, return on assets, the profitability and the relationship between supplier’s gross and net profits and turnover of the supplier during supplier evaluation in the organization as a measure to improve the procurement performance and integration of quality management techniques in the firm’s supply chain.
Key Words: Suppliers Finances, Quality Management, Supplier Evaluation
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.373
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