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ROLE OF E-PROCUREMENT STRATEGY IN ENHANCING PROCUREMENT PERFORMANCE OF SAVING AND CREDIT COOPERATIVES IN KENYA: CASE OF KITUI TEACHERS SACCO LIMITED


Charles Mutua Muinde

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

Noor Ismail Shale

PhD in Procurement and Supply Chain Management, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

The benefits of e-Procurement have been verified by many leading companies worldwide, and e-Procurement is a significant tactic in most companies’ e-Business strategies. The consensus is that e-Procurement benefits organizations with respect to procurement cost and process efficiency associated with procurement activities. This is due to web-based e-Procurement solutions can support four major B2B tasks in organizations: search, processing, monitoring and control, and coordination. Since the internet arrived on the scene as a supply management tool in the mid-2009 enterprises have tried to gain the benefit e-procurement can deliver: cost reduction, process streamlining, improved contract compliance, increased spend under management, and more. However many challenges stood in the way and only in the recent years have leading enterprises taken full advantage of the value of e-procurement systems. The overall objective of this study was to examine the role of e-procurement strategy in enhancing   procurement performance of Saccos in Kenya. A descriptive research design was used in this study. The study targets the entire 1000 staff working for Kitui teachers Sacco Limited. A descriptive research design was used in this study aided by Statistical Package for Social Sciences (SPSS). It established that majority of the employees from procurement departments in Saccos in kenya possess adequate skills and competence to conduct e-procurement for innovations. The study concluded that SACCOS can employ effective customer service level on e-procurement for long term SACCO success and the ability to expand and maintain a large and loyal customer base by implementing the use of technological innovations and ICT. The study concluded that e-business, electronic data interchange transaction costs management, and good governance and internet control application affects the procurement of SACCOS in Kenya. The study showed that audits and compliance of SACCOS in Kenya affect their procurement performance.


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