Impact of procurement policies and procedures on supply chain performance of commercial banks in Kenya
This research was conducted to find out if Commercial Banks in Kenya had aligned their policies, processes and procedures with their modernization agenda and commitments to enhance supply chain performance. It was guided by three main objectives that sought todetermine the extent of adherence of procurement policies and procedures, to determine the relationship between procurement policies and procedures on supply chain performance and to determine the challenges faced in the implementation of procurement policies and procedure in commercial banks in Kenya. The research design involved a cross sectional survey of all commercial banks in Kenya. Data was collected using a questionnaire that was administered through drop and pick later method. Percentages and frequencies were used to analyze objective one whereas regression analysis was used to analyze the relationship between business integration and supply chain performance. The findings were presented in tables and pie charts. The study established that most of the commercial banks in Kenya have in place procurement policies and procedures that have enabled them achieve transparency, efficiency and accountability in their operations. It was also clear that there was no significant relationship between procurement policies and procedures and supply chain performance represented by R2 value of 0.449 which translates to 44.9%.Thus a large unexplained variance of 55.1% meaning there are a number of significant predictors not included in the model. It proved to be a challenge in getting respondents. Most of the respondents thou agreed to participate on condition that the information will not be divulged to any other party other than for academic purposes only. Further research on the same topic can be conducted in commercial banks and other industries using more predictor to establish if procurement policies and procedures has an impact on supply chain performance. It is also recommend that in order to boost the performance of supply chains of commercial banks in Kenya, there is need to invest in various strategies. This therefore calls upon the management of various banks to come up with a procurement policies and procedures which outlines the strategies and guidelines in detail and ways of operationalization. This should be done in a consultative approach so as to smoothen the process.