Download This PaperRole of Strategic Procurement Practices On Procurement Performance in State Corporations in Kenya
American Based Research Journal, Vol. 7 Issue 05, May 2018
11 Pages Posted: 12 May 2020
Date Written: May 1, 2018
Abstract
The purpose of this paper was to investigate the effect of strategic procurement on the performance of geothermal development corporation. The researcher collected both primary and secondary data during the researcher. Primary data was collected using a questionnaire covering the strategic role of procurement in organizational performance. Quantitative data was analyzed by employing descriptive statistics and inferential analysis using statistical package for social science (SPSS) version 24. The findings have shown that cost Management on strategic procurement has a positive and significant effect on Procurement Performance, β1 = 0.550, p < 0.000. Furthermore, Supplier Relations do not have a significant effect Procurement Performance, β2 = 0.030, p = 0.656. Further focus on cost management strategies such as purchasing at a more centralized divisional level, cost analysis prior to approving purchases, contract reviews, supply chain mapping, and adequate human resource can go a long way in further improving procurement practices in the company. There is the specific focus that needs to be placed on cost reduction and how the competency of the suppliers can be further improved through training and resource provision that is critical to ensuring effective and efficient procurement processes.
Keywords: Supplier Relations, Strategic Procurement, Performance, Procurement, Cost Management
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