Influence Of Procurement Management On Performance Of Health Policy Plus Project In Western Kenya

Abstract

Procurement Management is an important and strategic function in every organization, since it forms a critical part of every project undertaken by the organization. The link between procurement management and project performance in particular, makes it important for organizations to adopt best practices in procurement to guarantee successful project completion. Therefore, this study sought to assess the influence of procurement management on project performance in Health Policy Plus in Western Kenya. Specifically, the study sought to determine the influence of procurement planning, vendor management, procurement monitoring and evaluation, eprocurement and inventory management on project performance. In Health Policy Plus, procurement has been faced with challenges spanning from counties complaining of frequent deferred procurement and supply of HIV related health commodities like ARVs and test kits; suppliers complaining of poor supplier management, delayed training of county health teams and poor monitoring and evaluation systems. The study adopted a descriptive research design. The target population of 106 consisted of top management and procurement staff at Health Policy Plus Project, County government supply chain officials and Health Facilities Managers. A sample of 84 out of 106 was established using the Nassiuma formula. Stratified and simple random sampling techniques were used in this study. Data was collected using a questionnaire and an interview guide. Data was classified and tabulated according to research objectives and analyzed using Statistical Package for Social Science version 25. The quantitative data was analyzed using descriptive statistics while content analysis was used for the qualitative data. Regression model was developed to show the relationship between variables. Data representation was done through tables. The study found that the acquisition is clearly planned in terms of time, scope, quality and quantity. Further, it was found that Health Policy Plus Project involves key suppliers on its entire project to ensure efficiency and effectiveness, quality compliance, effective product development and minimized costs due to innovation and economies of scale. The study also found that there is a functioning Enterprise Resource Planning System to facilitate electronic requisition and tenders are advertised through online system; deliveries are properly checked to ensure adherence to quality standards and as stated in the local purchase order, Health Policy Plus Project practices just in time inventory management and inventory is properly tracked to ensure its safe guarded against loss. The study concluded that procurement planning had the greatest influence on performance of Health Policy Plus Project in Western Kenya with a coefficient of 0.813 followed by inventory management with 0.789, then vendor management with 0.767, then e-procurement 0.701 while procurement monitoring and evaluation had the least influence with 0.598 on the performance of Health Policy Plus Project in Western Kenya. The findings are beneficial to the management of Health Policy Plus Project, Health Policy Plus Project stakeholders and academicians since it forms a basis for future reference The study recommends that Health Policy Plus project involves and conducts training of its relevant staff on developing quality procurement plans based on the approved work plan and budgets for effective procurement planning, fully integrate Vendor Managed Inventory to increase level of supplier relationship management and adopt effective Inventory control tools to determine inventory levels in order to guard against variability