Effect of Procurement Planning on Suppliers Performance in Public Institutions: A Case of Moi University (Published)
Supplier performance has become a critical factor for the organization’s success. In this regard, many firms and researchers have attempted to find out variables that affect either positively or negatively on supplier performance. However, very few studies have been carried out on procurement procedures in developing countries like Kenya. Public procurement system in Kenya has been characterized by a weak legal framework and lack of professionalism among public procurement practitioners. The study adopted an explanatory research design. The target population was 119 suppliers in the list of pre-qualified suppliers. The study adopted census for the suppliers to collect data; self administered questionnaires together with interviews schedule guides were used. Data was analyzed using descriptive statistics. The findings indicated planning enhances value for money, enhance quality, encourages proper utilization of resources, planning enables quick decision making and encourages innovations as it is a problem solving technique and saves time. Therefore procurement planning enhances supplier’s performance in service delivery.
In developing countries, public procurement is increasingly recognized as essential in service delivery and it accounts for huge proportion of total expenditures. However, there is a growing recognition that, despite significant increases in resource, public service delivery is falling in many developing countries. Poor service delivery of electricity can be justified by ineffective procurement systems within an organization. The purpose of this study is to evaluate procurement practices influencing service delivery in the public sector with focus on the provision of electricity: A case study of Kenya Power. The study is based on the socio-economic and institutional theories. The objectives of the study; to establish the influence of procurement policy on service delivery, to evaluate how procurement planning influence service delivery, and to evaluate sustainable procurement practices influence on service delivery. Methodology used in the study is a case study with a focus on Kenya power. Stratified sampling technique was used to select a representative sample from a target population of 160 employees with a sample size of 100 respondents. The respond rate is 71%. A mixture of Interview and Likert- Scale questionnaire were employed. The collected data was further analyzed using SPSS and excel computer software as well as descriptive statistics. The findings revealed that: Procurement rule and regulation lack flexibility and it is hampering the procurements operations as revealed by 77.5%; Procurement planning does not take long term cost of ownership into consideration as also revealed by 39.4%; the findings also revealed 59.1% agreed that there is no Sustainable procurement practice by the company even though it has Green policy in places but, the implementation is hampered by organizational culture as well as budgetary constraint. The followings are major Recommendations: The National procurement policy or rules and regulations should be review to put into place clauses that will lead to flexibility and inclusion of emerging trends in the procurement process as procurement is an involving profession; The top management should ensure that the procurement departments are involved in all procurement and contract related activities as a result of the decentralize nature of the company’s procurement system; The planning process for electricity expansion should involve all concern departments so that planning can be done in advance before budgets are approved; Government should increase it subsidy to the company’s operation; The company should include sustainable procurement criteria within its procurement and contracting decisions.