Electronic Sourcing and Procurement Cost of Commercial State Corporations in Kenya

Abstract

The study looked at electronic sourcing and procurement cost of commercial state corporations in Kenya. The specific objectives that guided the study were to determine electronic sourcing practices commonly used by Commercial State Corporations in Kenya and determine relationship between electronic sourcing and procurement cost of Commercial State Corporations in Kenya. The study adopted a descriptive research design and 33 commercial state corporations were targeted. The respondents included supply chain/procurement officers and finance managers of these 33 organizations. The study used a census and information was gathered with aid of questionnaires. The analysis was done descriptively and inferentially. It was established that e-supplier identification, e-supplier selection, e-prequalification and e-supplier evaluation as key e-sourcing practice are the key e-sourcing practices among most commercial state corporations and all of them have a postive and significant effect on procurement costs. The study concludes that e-sourcing has postive and significant effect on procurement costs. The study recommends that the Public Procurement and Oversight Authority (PPOA) should effectively play its role as far e-sourcing practices among commercial state corporations in Kenya are concerned.