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.