INFLUENCE OF PROCUREMENT MANAGEMENT SYSTEMS ON PERFORMANCE OF MOTOR INDUSTRY IN KENYA

Eric Mwiti Kamathi, Dr. Charles Ndeto

Abstract


Procurement management system manages the evaluation, selection, and creation of formal agreements with suppliers. In Kenya, there has been complains regarding delayed consumer connection beyond expected time which is mostly caused by ineffective procurement management system which leads to delayed delivery of material, material stock out, lack of qualified personnel in procurement department, issues ethical behavior among the employees when dealing with the clients and lack embracing and adopting the modern technology all these stems from procurement principles that mostly the organization has failed to follow. This study therefore sought to establish the influence of procurement management system on performance of motor industry in Kenya. Specifically, the study sought to determine the influence of strategic sourcing and supply management on performance of motor industry in Kenya. The study utilized a descriptive research design. The unit of analysis was 225 registered motor vehicle importers operating within Nairobi (Registrar of businesses 2018). On the other hand the unit of observation was 225 managers of the registered motor vehicle importers operating within Nairobi. The study used census sampling method. This implies that all the 225 respondents participated in the study. In this study, questionnaires were used in the collection of primary data. Semi structured questionnaires were used for generation of qualitative and quantitative data which separately was analysed using different techniques. Descriptive and inferential statistic were used in analyzing quantitative data with the help statistical software known as SPPS version 21. Descriptive statistic entails calculation of percentage, frequencies and measurement of mean as well as measurement of dispersion. The final results were presented by use of figures (pie charts and bar charts) and tables. The relationship between dependent and independent variable(s) was determined through regression analysis. The study concludes that strategic sourcing and supply management has a significant effect on the performance of motor industry in Kenya. From the results, this study recommends that the management of motor industry in Kenya should formulate and implement effective strategies to enhance contract management.

Key Words: procurement management system, strategic sourcing, supply management, performance of motor industry 


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References


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