The impact of strategic procurement in Communications Commission of Kenya
The impact of procurement m government procurement units is driven by the contribution of the function to overall corporate performance and its interface relationships; much has been written about procurement strategy, but the actual impact of procurement strategy on corporate performance in Kenyan government has been neither empirically substantiated nor rigorously examined. The purpose of this study was to establish the impact of strategic procurement in the Kenyan service sector with a specific focus on CCK. The specific objectives of the study were; to establish the impact of procurement in organizational performance in Kenyan government procurement units, to determine the major challenges affecting procurement in government and to find out effective measures that can be employed to address the procurement challenges in government. This research problem was solved through the use of a case study. The target population of this study was all the employees in the procurement department and the user departments of CCK situated in CCK's Centre in Nairobi. For the purpose of this study the primary target was be 38 employees who have the knowledge of procurement in terms of being the users or in procurement department. The research employed a census method due to the small size of the population, The study used both primary and secondary data. Primary data was collected using semi-structured questionnaires. The questionnaires correctly filled were coded and all the data entered into statistical package for social sciences and analyzed based on descriptive statistics. Study findings indicated that strategic procurement at CCK has brought with it benefits such as reduced costs, continuous and meaningful engagement with procurement professionals and partners to inform strategy and drive quality, promoted and specified continuous improvements in quality and outcomes through provider innovation and configuration and has stimulated coordination of the sourcing and other departments of the organization. Challenges facing procurement at CCK, included unprecedented changes and volatility in the technological environment, lack of requisite skills in employees to undertake strategic procurement, lack of management commitment to strategic plans and inadequate adherence to formulated strategies. Lack of cooperation and teamwork during implementation, misalignment of strategic procurement plans with the company culture and non-alignment of the strategic plans to the leadership were other major challenges. The study recommends that procurement should always be considered as a strategic player in the value chain as it usually represents one of the largest expense items in a firm's cost structure especially government agencies. The study also recommends that organizations should ensure they have competent employees in procurement and strategic management to chart a way forward for the procurement function. The organization should analyze how effective its staff development plan is at increasing the professional competence and standing of the supplies management function. Successful implementation of value-based management in this complex procurement function requires well-trained and educated employees. The study also recommends a review of the public procurement and disposal Act 2005. This should be reviewed to ensure that it is aligned with the values and practicalities of the procurement function in Kenya.