Supplier Evaluation Criteria and Procurement Performance in Parastatals in Kenya
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Date
2015-10Author
Chemjor, Robert K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Selection and maintaining competent suppliers is very essential in procurement. However,
many factors affect a firm's ability to choose the right supplier. However, less has been done
to investigate the supplier evaluation criteria and the influence to the procurement
performance in the Kenyan context. Therefore this study was undertaken with the main
objective to assess the supplier selection and evaluation practices in Parastatals in Kenya. The
study was guided by three specific objectives; to establish the criteria used for supplier
evaluation in Parastatals in Kenya; to find out the challenges of implementing Supplier
Evaluation in Parastatals in Kenya and to determine the relationship between Supplier
Evaluation Criteria and procurement Performance in Parastatals in Kenya. It employed a
descriptive research design. The target population for the study included all the 187
parastatals under the state corporations‟ act of Kenya as at September 2015. Out of these, a
sample of 53 was selected to give response to the study. However, 3 of these did not respond
to the study giving a response rate of 94%. Questionnaires were used to collect data which
was analysis through SPSS software version 22. Findings revealed that Parastatals in Kenya
base their selection on following criteria; quality of the supplier services during, financial
position of the supplier, flexibility of the supplier, supplier efficiency in service delivery,
supplier charges, constitution and the PPOA guidelines, information sharing between the
organization and supplier, supplier technical capability, supplier profile, ability of the
supplier to share confidential information, experience of the supplier in offering certain
services/products as well as compliance with procurement procedures. However, the supplier
evaluation in these organizations is faced by several challenges including corruption,
incompetent procurement officers, inefficiencies in procurement processes, lack of
incentives, pressure of implementing PPOA and PPDA guidelines, cost of implementing
procurement systems as well as maintaining procurement system greatly affects supplier
selection process. The study therefore recommended that the management and the supply
chain management for the Parastatals in Kenya need to effectively evaluate the most effective
evaluation criteria that would facilitate its procurement performance. There is need also to
ensure that competent personnel are in place to manage supply chain processes in the
organizations.
Publisher
University of Nairobi