E-procurement and Supply Chain Performance in the Sugar Factories in Kenya
Abstract
Electronic Procurement is an important business avenue for lowering purchasing price and
enhancing process efficiency. E-procurement as enabled by ICT development is believed to
make procurement more efficient and competitive in the changing manufacturing sector by
adding value to processes and thus reduce costs. The purpose of the study was to establish the
influence of electronic procurement on the supply chain performance of the sugar factories in
Kenya. This study was guided by two theories namely: Technology, Organization and
Environment Theory and Technology Acceptance Model (TAM). The research used a
descriptive research design. The study was carried out in both public and private sugar
factories in Kenya. The Target population for this survey included all the 12 sugar companies
in Kenya, both Public and privately owned. Census sampling was used to select the sample
because the factories are few. Purposive sampling was used to select 12 procurement
managers from the 12 factories. The main data collection instrument was structured
questionnaires that were sent through email. The data collected was analyzed through
descriptive statistics and inferential statistics. Descriptive statistics involved frequencies,
percentages, mean and standard deviation. Inferential statistics used multiple regressions. The
study concluded that electronic procurement had influence on supply chain performance of
the sugar factories in Kenya (R=.902; p value < 0.05). Based on the findings the study
recommended the following: That management of the sugar factories in Kenya should
embrace electronic procurement components (e-sourcing, e-ordering, e-material management
and e-informing) in order to improve supply chain performance. The sugar factories in Kenya
should adopt e-procurement in order to enhance profitability, transparency, improve quality
of supply chain, cost reduction and increased information sharing.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1552]
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