EFFECT OF PROCUREMENT OPTIMIZATION ON PERFORMANCE OF COMMERCIAL STATE CORPORATION IN KENYA
Abstract
This study focused on determining the effect of procurement optimization on the performance of commercial State Corporation in Kenya. In many companies, there is great potential to increase efficiency by optimizing your procurement and supply chain processes. Increased efficiency, cost savings and quality improvements can all be achieved by optimizing existing processes and integrating new processes. Optimization of procurement activities generates efficiency improvements and increases effectiveness of procurement processes. Activities within each stage of procurement can be reprogrammed and executed in line with prevailing legal, regulatory and policy frameworks to improve performance. The study was limited to the following objectives; To establish the significance of sourcing optimization on the performance of commercial State Corporation in Kenya and to determine the effect of transport optimization on the performance of commercial state corporation in Kenya. This study adopted a mixed research design. Both qualitative data and quantitative data was collected. The target population was 561 respondents which comprised of the employees working at the finance, procurement, warehouse, contract management and transport units of the commercial state corporations. Proportionate stratified sampling technique was used to determine the specific sample size of each strata of the study. Data was obtained through questionnaire and annual reports. Data analysis was done through SPSS Version 24 and the analyzed data was presented in form of tables. The findings of the study were found to be in agreement with the past studies. Procurement optimization technique was found to be contributing towards customer satisfaction, return on investments and return on assets and thus overall improvement of performance of commercial state corporations in Kenya. The findings of the study were used to provide recommendations to the stakeholders at large on need for optimizing their procurement operations.
Key words; Sourcing Optimization, Transport Optimization, Performance
CITATION Oyoo, P. J., & Noor, I. (2020). Effect of procurement optimization on performance of commercial State Corporation in Kenya. The Strategic Journal of Business & Change Management, 7(3), 687 – 702.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i3.1701
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