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THE ROLE OF STRATEGIC PROCUREMENT APPROACHES IN INTERNAL SUPPLY PERFORMANCE: A CASE STUDY OF KENYA VEHICLE MANUFACTURERS LIMITED IN KENYA


Mathias Nzomo Muinde

Jomo Kenyatta University of Agriculture and Technology, Kenya

Zakary Muchiri Njoroge

Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Strategic procurement is the development of a true partnership between a buying company and a supplier of strategic value, based on embracing long-term plans for ensuring timely supply of goods/services that are critical to firm’s ability to meet its core business.  This study was primarily based on finding out the role of strategic procurement approaches in internal supply performance of Kenya Vehicle Manufacturers limited. The overriding philosophy which agitated the researcher to pick this particular organization for the study was because the company in question (KVM) invariably purchases high volume of goods and services both locally and internationally an attribute that gave the researchers a broad perspective of examining the degree of strategic procurement approaches in the company. Over the years, the procurement function has remained passive in regard to the acquisition of high value goods and services an attribute that cause long lead times and also high costs of purchased goods. This perennial problem has precipitated a decline of procurement/supply performance of enormous companies. The study sought to obtain more literature pertaining issues on strategic procurement and the researcher came up with conceptual framework based on how different variables affect the internal supply performance. In gathering out the data the researchers used descriptive research method. This involved use of simple and easily understandable questions. An analysis of data obtained from the company’s Procurement and Supply reports enabled settle a conclusion that: (1) There have been numerous strides made towards provision of procurement approaches in KVM; (2) There are a couple of challenges which hamper full implementation of these attributes. The noticeable challenges include; Lack of clear communication; Lack of full support by suppliers; inadequate technical support; Lack of proper policies and also less training forums.


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