INFLUENCE OF TRANSPORT MANAGEMENT PRACTICES ON PROCUREMENT PERFORMANCE OF MANUFACTURING FIRMS IN KENYA. A CASE STUDY OF BUTALI SUGAR COMPANY LIMITED
Abstract
Organizations in manufacturing sector have realized the importance of procurement performance with an essence of establishing and maintaining their competitive advantage. Manufacturing sector in any economy values the relevancy of warehousing since stocks of both raw materials and finished goods is of essence in the production system. Procurement performance is regarded as the efficiency and effectiveness of procurement processes in an organization. Warehousing practice is considered as one of the aspect that can enhance organization’s competitive advantage which at the end yields to effective organization performance. Transportation being one of warehousing Practices plays a role in procurement performance. The specific objective of this study was to examine the influence of transport management practices on procurement performance of Butali Sugar Company Limited, County Government of Kakamega; Kenya. This research problem employed descriptive research design. The target population of the study composed of employees of Butali Sugar Company Limited who were directly associated to decision making on procurement matters in the factory. Census technique was applied on the population and the entire targeted population was examined since it was manageable. The study used structured questionnaire as an instrument of primary data collection. Both descriptive and inferential statistics were focused on and the computation was done by use of SPSS version 24 to test the primary data that was collected to satisfy the objectives of study. Pilot study was conducted in West Sugar Company Limited to find out the validity and reliability of analysis of data for the study. Further, a structural regression equation model was developed to test the relationships between the variables. ANOVA was performed to analyze the effects of various relationships at the variables level as well as item level. The result after the analysis was, transport management practices had significant influence on procurement performance. The conclusion of the study embraced the use of Transport management practices since it improves procurement performance. The study recommended for further study on influence of transport management practices on procurement performance, especially in public sector.
Key words; Transport Management Practices, Procurement Performance
CITATION: Samita, M. N., Kadima, J., & Juma, D. (2020). Influence of transport management practices on procurement performance of manufacturing firms in Kenya. A case study of Butali Sugar Company Limited. The Strategic Journal of Business & Change Management, 7 (4), 1075 – 1085.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1843
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