Challenges of e-procurement implementation among multinational tea companies in Kericho county, Kenya
Abstract
Electronic Procurement is the use of electronic computer systems to manage the entire
procurement process Francois (2012). While this system can deliver significant cost
savings to business, a number of innovative companies and marketplaces are now
looking at other appropriate areas of their business to drive forward their business
performance throughout the value chain - both supply and demand. The objective of
the study was to assess the challenges facing implementation of e-procurement by
multinational tea companies in Kericho County. The target population was the heads
of procurement departments and two employees drawn from each of the three
companies. Questionnaires and interview guide was used as the instrument for
collecting data since both primary and secondary data was collected. Data was
analyzed using qualitative and quantitative techniques. Qualitative data was analyzed
using content analysis. Linear regression model was used. According to data findings;
all the four independent variable ; cost, legal, security and supplier enablement were
found to have correlation coefficients of 0.49, 0.575, 0.506 and 0.552 respectively
with the implementation of e-procurement among the multinational tea companies
involved in the study. Conclusions are that the entire four variables that were
identified for analysis namely; cost, legal infrastructure, security and supplier
enablement were found to be key impediments to the implementation of eprocurement.
Recommendations are; As much as resources are always limiting,
multinational tea companies should look at e-procurement as a critical investment and
set aside adequate financial resources in their budgeting process. Furthermore only the
initial investment in procurement of the necessary hardware, software and training of
require personnel is resource intensive while the subsequent maintenance and
operation cost are substantially low in comparison to the streams of benefits that will
accrue from such investments
Citation
Master of Business AdministrationPublisher
University of Nairobi