INFLUENCE OF SUPPLIER SELECTION CRITERIA ON PROCUREMENT PERFORMANCE IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS) IN KENYA: A CASE OF AMREF HEALTH AFRICA IN KENYA

Muga Erick Otieno

Jomo Kenyatta University of Agriculture and Technology

Dr. David Mburu Kiarie (PhD)

School of Business Management and Economics,

Dedan Kimathi University of Technology, Kenya

CITATION: Otieno, M., E. & Kiarie, D., M. (2017). Influence of Supplier Selection Criteria on Procurement Performance in Non-Governmental Organizations (NGOs) in Kenya: A Case of AMREF Health Africa in Kenya. International Journal of Human Resources and Procurement. Vol 6 (3), 19- 37.

ABSTRACT

Objective of this study is to establish the influence of supplier selection criteria on procurement performance in non-governmental organizations in Kenya. To achieve this objective of the study, a descriptive design was adopted. The target population of the study consisted of all 250 employees of Amref Health Africa. A Sample of 167 employees was drawn from the population using simple random sampling method. The study used primary data which was collected by a semi-structured questionnaire. The data was collected from sampled employees using a drop and pick- later method. Data was analyzed using descriptive statistics and inferential analysis. It was found that a unit increase in product quality analysis, Purchase price analysis, lead time analysis and supplier financial assessment leads to an increase in the procurement performance. Further a significant positive correlation was found between; Procurement Performance and product quality analysis (r=0.693, n=154, p=0.003), Procurement Performance and Purchase price analysis (r=0.661, n=154, p=0.000), Procurement Performance and lead time analysis (r=0.612, n=154, p=0.001) and Procurement Performance and supplier financial assessment (r=0.594, n=154, p=0.013). It further established that product quality analysis is important for the procurement performance of the organization. The study also established that Amref Health Africa carry out purchase price analysis before supplier selection. Further the study established that checking on quality of the items before purchase is important. Checking on quality of items before purchase enable organization to avoid being supplied with poor quality items, lead time analysis helps procurement to verify the integrity, reliability of the supplier and the suppliers’ capability of delivering. Supplier financial performance assessment helps to know the financial capability of the supplier. The study also recommended that the management of Non-Governmental Organizations should ensure that quality assessment is carried out during supplier selection in their organization. The management should also carry out Purchase price analysis before supplier selection this will enable the organization to identify who supplies at the competitive price for the benefit of the organization, to ensure organization gets value for money and prevent wastage where the price of a product is cheaper. Other researcher may focus on the relationship between procurement performance and supplier selection criteria in public institutions in Kenya.

Key Words: Supplier Selection Criteria, Procurement Performance, Non-Governmental Organizations and Amref International

Full Text PDF Format