Procurement Practices and Supply Chain Performance of Telecommunication Firms in Kenya

Abstract

The main objective of this study was to establish how procurement practices and supply chain performance relate. The study aimed to achieve the following specific objectives: to determine the extent which procurement practices are adopted by telecommunication firms in Kenya and to determine the relationship between procurement practices and supply chain performance of the telecommunication firms in Kenya. The study employed descriptive cross sectional survey design. Eight telecommunication firms were purposively sampled from all the players in the telecommunication firms in Kenya. Descriptive statistics and inferential statistics were used to analyze the data. The study established that all firms in the telecommunication industry employed the following procurement practices; Supplier partnerships, adoption of information technology, Contract monitoring and control and lean procurement. The practices were adopted to streamline and make procurement process more efficient and enhance centralized procurement system hence reducing costs. Rating of the procurement practices indicated that; contract monitoring and control was the most rated followed by adoption of information technology i.e. e-Procurement then supplier partnerships and lean procurement. The study concludes that out of the procurement practices discussed in this study notably; supplier partnerships, Information technology, contract monitoring and control and lean procurement, contract monitoring and control contributes highly to supply chain performance.. The study recommends that telecommunication should intensify contract monitoring and control to enhance supply chain performance.