INFLUENCE OF SUPPLIER APPRAISAL CRITERIA ON PROCUREMENT PERFORMANCE OF PETROLEUM COMPANIES IN KENYA: A CASE OF DALBIT PETROLEUM LIMITED

Lucy Kavinya Philip

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Dr. Allan Kihara

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

CITATION: Philip, L., K., & Kihara, A. (2017). Influence Of Supplier Appraisal Criteria On Procurement Performance Of Petroleum Companies In Kenya: A Case Of Dalbit Petroleum Limited. International Journal of Human Resources and Procurement. Vol. 6 (5) pp 660 - 678

ABSTRACT

In the Kenyan, constant oil shortages are normally experienced from time to time and as the Petroleum Institute of East Africa (2016) report indicate, the problem of fuel adulteration, fluctuations in price, high demand and supply in Kenya remains a challenge where complains on the quality of products received is questionable. This places a question as to whether a good supplier appraisal system has been put in place by the 100 oil marketing companies in Kenya of which Dalbit is a member. The study focused on the influence of supplier appraisal criteria on procurement performance of petroleum companies in Kenya with reference to Dalbit Petroleum Limited. Specifically the study seeks to establish how supplier’s financial status, supplier’s capacity, supplier’s quality of goods and services and supplier’s technical capability influence procurement performance of oil marketing companies. The study adopted a descriptive research design. The target population for this research study was 120 respondents in management positions at Dalbit Petroleum Limited comprising of directors, managers, assistant managers, supervisors, team leaders and assistant team leaders. Descriptive statistics such as, mean and frequencies and inferential statistics (regression and correlation analysis) were used to perform data analysis. A multiple linear regression analysis model was used to test the hypotheses and link the variables. The findings indicated that appraisal of supplier’s financial status and quality of goods has a significant influence on procurement performance while technical capability and capacity has a positive but insignificant influence on procurement performance. The study recommends that the petroleum companies should increase the frequency of conducting appraisal of financial status of the supplier’s, appraisal of the capacity of the suppliers, Storage capacity and suppliers quality of goods.

Key Words: Supplier’s financial status, Supplier’s technical capability, Procurement performance, Petroleum companies in Kenya

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