EFFECT OF SUPPLY CHAIN PRACTICES ON PROCUREMENT PERFORMANCE OF STATE CORPORATIONS IN KENYA
Abstract
The main objective of the study was to establish the effect of supply chain practices on procurement performance of state corporations in Kenya. The study adopted a descriptive survey research design. The study target population was 152 heads of procurement form the state corporations in Kenya. The study used questionnaires as the main data collection instrument. The findings of the study revealed that the four supply chain practices of outsourcing, distribution management, inventory management and procurement planning positively and significantly influenced procurement performance of state corporations in Kenya. The study concluded that an improvement in various indicators of outsourcing would significantly improve the procurement performance of state corporations in Kenya. The study also concluded that a positive change in various indicators of inventory management practices will significantly improve the procurement performance of state corporations in Kenya. The study recommended that in order for the state corporations in Kenya to improve their procurement performance, there is need to focus on outsourcing practices such as outsourcing of some of the services, outsourcing personnel who have a remarkable focus on core competencies, embracing technical capacity in outsourcing to reduce spending on staff, emphasizing technical capacity to develop business relationships and become competitive, and playing a key benchmarking role to other players in the market through risk transfer. The study also recommended that state corporations in Kenya should strive to adopt distribution management practices such as proper product tracking to reduce warehousing costs, product labeling for high valued inventories, ensuring that there is the use of warehouse management system to improve cost reduction, adopting FIFO system to enhance timely deliveries and improve customer satisfaction and using automated tools and techniques for order processing to enhance timely deliveries in the corporation. The study also recommended that state corporations in Kenya should pay close attention to inventory management practices such as ensuring that there is tracking of inventory to enhance coordination of materials accessibility, controlling, utilization and procuring of materials, having correct forecasting methods thus reduction of stock outs, ensuring that there is no obsolete and excessive inventory to reduce operational costs.
Key Words: Outsourcing, Distribution Management, Inventory Management, Procurement Planning, Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.878
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