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INFLUENCE OF PROCUREMENT METHODS ON SUPPLY CHAIN PERFORMANCE IN DEVOLVED GOVERNMENTS IN KENYA: A CASE 0F SELECTED COUNTY GOVERNMENTS

 

Nehemiah Kimani Kamau

M.Sc (Procurement and Logistics),

Jomo Kenyatta University of Agriculture and Technology,

Kenya

 

Dr. Dr. David Kiarie Mburu

Lecturer,

Jomo Kenyatta University of Agriculture and Technology,

Kenya

 

CITATION: Kamau, N., K., & Mburu, K., D. (2016). Influence of Procurement Methods On Supply Chain Performance In Devolved Governments In Kenya: A Case 0f Selected County Governments. International Journal of Human Resources and Procurement . Vol 6 (2) pp 38 - 57

 

ABSTRACT

This study sought to establish the influence of procurement methods on supply chain performance in devolved governments in Kenya The study was guided by the following specific objectives: to assess the influence of open tendering on supply chain performance in devolved governments, to determine whether restricted tendering affect supply chain performance in devolved governments, to establish whether single sourcing influence supply chain performance in devolved governments and to explore whether request for quotations affect supply chain performance in devolved governments. Descriptive research design was used for the study. The target population for this study was supply chain personnel from the six counties. There are 90 employees working in supply chain department as they were arguably in a better position to answer the question in order to address the research problem. The respondents included supply chain managers, supply chain officers, procurement assistants and clerical officers in the department. Primary data was collected using questionnaires by use of the census survey technique. The quantitative data was entered into SPSS for analysis. Factor analysis was then applied to reduce the data which was finally used for analysis. Both quantitative and qualitative data analysis techniques were used. Quantitative data was analyzed using descriptive statistics while qualitative data was analyzed thematically. Descriptive statistics such as percentages, means and standard deviations were used to analyze the data while inferential statistics such as correlation and regression analysis were used to test on the relationship between the variables of the study where multiple regression model was used at 5% level of significance Tables, graphs and charts were used to present the findings of the study. It is notable that there exist strong positive relationship between the independent variables and dependent variable as shown by R value (0.852). The coefficient of determination (R2) is used to measure how far the regression model’s ability to explain the variation of the independent variables. The data showed that the high R square is 0.726. It shows that the independent variables in the study were able to explain 72.60% variation in the supply chain performance in devolved governments while the remaining 27.40% is explained by the variables or other aspects outside the model. The study recommends for open tendering in the devolved governments as it allows for fairness and transparency. Restricted tendering as a procurement method can limit the request for tenders to a selected number of service providers, suppliers or contractors. Single sourcing should be enhanced in the devolved governments especially when the tighter the coordination between procures in County Government and supplier required for Just in time (JIT) stock initiatives encourages the County to shift supply relations towards single sourcing. The county government can benefit from single sourcing in terms of reduced order lead times, quantity discounts from order consolidation and logistical cost reductions and this influences supply and processing of goods and services and achieve cost efficiency due to quantity discounts involved in this method. The findings have demonstrated role of procurement methods on the supply chain performance in devolved governments to include; open tendering, single sourcing, restricted tendering and request for quotations. The current study should therefore be expanded further in future in order to determine the effect of public procurement legal framework on supply chain management practices. Existing literature indicates that as a future avenue of research, there is need to undertake similar research in other devolved governments and national government in Kenya and other countries in order to establish whether the explored factors can be generalized to affect supply chain performance.

 

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