INFLUENCE OF PROCUREMENT OUTSOURCING PRACTICES ON PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA
Abstract
The general objective of the study was to examine the influence of procurement outsourcing practices on performance of manufacturing firms in Nairobi County, Kenya. It was notable that there existed a relationship between independent and dependent variable with a correlation coefficient of 0.871. The variables were very significant and they therefore needed to be considered in any effort to boost supply chain performance in the county government of Kenya. 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 managers should monitor the supply chain to ensure that vendors familiarize themselves with the company's operating activities and manufacturing with their own organizational requirements and priorities. The study recommended that given the rapid changes in taste, technology and competition; organization should not rely solely on its existing supplier but look forward to get better sources of materials. The study recommended that there is need to enhance logistics outsourcing practices 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 recommended that the firm’s warehouse management should focus on coordination of the movement and storage of materials within a warehouse and processes associated and transactions, including shipping, receiving, put-away and picking. The firms should continue to seek to reduce the number of stocking locations and drive more productivity from the remaining distribution centers
Key Words: Supplier, Material, Logistics, Warehouse Outsourcing, Manufacturing Firms Performance
CITATION: Chepwogen, B, H., & Moronge, M. (2019). Influence of procurement outsourcing practices on performance of manufacturing firms in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (1), 410 – 417.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i1.1065
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