Best-value Procurement Strategies and Supply Chain Performance of Large-scale Manufacturing Firms in Kenya

Abstract

The study sought to determine the influence of best-value procurement strategies on the supply chain performance of large-scale manufacturing firms in Kenya. The study used descriptive survey method research design to collect and analyze the data; the data was collected using questionnaires. The study population was 499 large-scale manufacturing firms in Kenya of which a sample of 125 firms was selected using Stratified random sampling method. Analysis and coding of data was done through SPSS. Descriptive statistics and regression analysis was used in the analysis and the data was summarized by use of tables and regression model. The study established that to a great extent most of the large-scale manufacturing firms in Kenya use Strategic e-procurement, Strategic supplier relationship management, Best-value spend and category management strategy, Weighted average supplier scoring strategy and Collaborative best-value sourcing strategy in an effort to improve their procurement processes. The study also established that best-value procurement strategies have great influence on the supply chain performance of large-scale manufacturing firms in Kenya. The study indicates that seventy seven point nine percent (77.9%) of the variation in supply chain performance were explainable by the five bestvalue procurement strategies. Therefore the study recommends that large-manufacturing firms in Kenya to adopt the Strategic e-procurement, Strategic supplier relationship management, Best-value spend management and category management strategy, weighted average supplier scoring strategy and Collaborative best-value sourcing strategy to improve their supply chain performance. The study further recommends that future research to consider additional variables like risk management strategies as a moderator on the relationship between best-value procurement strategies and supply chain performance to enhance the conclusions of this study’s findings.