Procurement Planning and Performance of Building, Mining and Construction Manufacturing Firms in Machakos County, Kenya

Abstract

This study sought to investigate the influence of procurement planning on performance of building, mining and construction manufacturing firms in Machakos County, Kenya. The specific objectives were to determine the procurement planning activities in the building, mining and construction manufacturing firms in Machakos County, Kenya. To establish the relationship between procurement planning and performance of building, mining and construction manufacturing firms in Machakos County, Kenya. To establish challenges faced in the implementation of procurement planning by manufacturing firms in Kenya. A descriptive research design was adopted targeting building, mining and construction manufacturing firms in Machakos County where procurement managers were the respondents. Census was used and data was obtained from first hand sources supported by the questionnaire. The analysis of the findings was done by SPSS and presented through tables. On the first objective, study established that building, mining and construction manufacturing firms in Machakos County did practice procurement planning activities that include supplier evaluation followed by cost estimation, procurement scheduling, and identification of needs and lastly hierarchy of plans. The results of the second objective showed that supplier evaluation had the greatest significant contribution towards performance of building, mining and construction manufacturing firms in Machakos County, Kenya followed by hierarchy of plans, procurement scheduling, cost estimation and identification of needs. On the last objective, there were underlying challenges in procurement activities in the building, mining and construction manufacturing firms in Machakos County, Kenya. The study concludes that the relevant procurement planning activities in an organization that significantly enhance performance include supplier evaluation, cost estimation, procurement scheduling, and identification of needs and lastly hierarchy of plans. It further concludes that implementation of procurement planning activities require the firm to overcome some underlying challenges like the constantly changing technologies. The study recommends that procurement managers working in building, mining and construction manufacturing firms in Machakos County should formulate relevant strategies in light of the changing technologies that pose a challenge in procurement planning processes. The finance managers of the building, mining and construction manufacturing firms in Machakos County should accurately carry out budgeting processes. The policy makers among building, mining and construction manufacturing firms in Machakos County should come up with relevant policies with regard to procurement planning activities that would improve performance.