EFFECT OF SUPPLIER APPRAISAL POLICY ON PROCUREMENT PERFOMANCE IN STATE CORPORATIONS IN KENYA; A CASE OF KENYA MEDICAL SUPPLIES AUTHORITY
Abstract
The general objective of the study was to assess the effect of supplier appraisal policy on procurement perfomance in state corporations. The study was significant to the public sector, KEMSA, researcher as well as other scholars. The study used descriptive research design. Data was collected through self-administered questionnaires procedure, the drop and pick method was used to collect information from the selected respondents. A sample size of 72 respondents was drawn from the sample frame using stratified random sampling procedure. Pilot testing was conducted using 7 respondents from the sample size to test validity of data collection tool. Reliability of the data collection instrument was conducted using alpha Cronbach analysis. The collected data was then analyzed using descriptive and inferential analysis and the data presentation was done using frequencies and percentages. The findings of the study confirmed that supplier appraisal policy had a positive impact towards procurement perfomance. Quality management is an integral element towards sustaining competitive procurement perfomance. Procurement costs do share a large portion of total expenditure and thus measures should be put in place to ensure cost reduction, sustainability and value for money. Supplier competency was evidently a major determinant of procurement perfomance. Effectiveness, efficiency and consistency of the suppliers should be well monitored and managed to enhance overall perfomance in procurement. Ethical practices were found to be key towards enhancing competitive advantage in an institution. Through managing transparency levels, integrity and accountability of all the stakeholders’ involved, tangible results can be realized in an organization. The study recommended that further studies should be conducted so as to assess the factors that hinder implementation of sustainable supplier appraisal policy in the public sector and how it affects the overall procurement performance.
Key Words: Quality Management, Procurement Costs, Supplier Competency, Lead Time, Procurement Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.669
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