INFLUENCE OF VENDOR RATING ON PROCUREMENT PERFORMANCE OF PUBLIC HOSPITALS IN KENYA: A CASE OF KENYATTA NATIONAL HOSPITAL
Abstract
The objective of the study was to find out the influence of vendor rating on procurement performance of public hospitals in Kenya with specific reference to Kenyatta national hospital. The study would be of significance to the management of Kenyatta National Hospital, suppliers and the government of Kenya. The study used descriptive research design. The target population of the study comprised of employees of Kenyatta National Hospital, managers and their assistants from different departments. The census was carried out for the 111 respondents. Questionnaires were used to collect data. The data analysis was carried out using SPSS. According to the study findings, the correlation coefficient was 0.783. This indicates a very strong positive relationship between the independent variable and dependent variable. The data showed that the high R square was 0.613. It showed that the independent variables in the study were able to explain 61.30% variation in the procurement performance in the organization while the remaining 38.70% was explained by the variables or other aspects outside the model. This implied that these variables were very significant and they therefore need to be considered in any effort to boost procurement performance in the organization. The study therefore identified variables as critical determinants of procurement performance in the organization. The study recommended that inspection methods for supplier to be included in the approved list and assessed on quality aspects. It was also vital to establish which of the supplier knows about and was ready to implement the concept of total quality policy. The study recommended that the order handling time for goods and services should be always short as possible for the order fulfillment. It can provide the basis for integrating the manufacturing and distribution planning for the inventory control policy. The organization should ensure that the production costs should be continuously pursued by the organization. The transaction costs should continue to be relatively low and variations in prices across the organization are substantial. There is need to ensure that those who finance purchasing services have taken inefficiency that inflates procurement costs. The supplier financial stability and fiscal outlook enhance timely deliveries. The supplier bankruptcy distracts procurement process thus affecting timely deliveries of goods. The organization should ensure that there is financial soundness of the supplier contributing to a lasting partnership thus reduction of costs.
Key Words: Quality of Supplies, Lead Time, Cost Of Supplies, Supplier Financial Capacity, Procurement Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i2.738
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