INFLUENCE OF INFORMATION COMMUNICATION AND TECHNOLOGY ON PROCUREMENT PERFORMANCE IN COMMERCIAL STATE CORPORATIONS IN KENYA

Abstract

The study sought to examine the influence of information communication and technology on procurement performance in the commercial state corporations in Kenya. The study used 195 respondents who were involved in the procurement related activities in the organization. The study used a structured questionnaire to collect data from the key informants in the organizations. The collected data was analyzed using both quantitative and qualitative data analysis methods. The study applied the statistical package for social sciences (SPSS V. 22) to compute the measurements of the multiple regressions for the study. From the study results it was established that there extisted strong positive relationship between the indepedent variables and depedent variable. The study identified the variables as critical factors of inventory management systems to enhance procurement performance in the commercial state corporations in Kenya . The study recommended for firms to put in place ERP systems to ensure that there was planning for inventory to improve decision making for the timely delivery of goods. The connectivity with the suppliers of the firms is important as it enhances reduction of stock out costs and inventory accuracy facilitates flow of information for timely delivery of goods. The study recommended E-procurement in the public organizations is an important element in its supply chain. The E-procurement can be done through digitalization of information and data, rationalization to improve efficiency in administration process. The success of E-procurement depends on the increase of bidders (suppliers) that participate to procurement auctions to enhance service delivery in the public organizations in Kenya. The study recommended for the Vendor Managed Inventory systems in the organizations that has a stock management system to minimize the total holding and ordering costs annually thus leading reduction of stock out costs. The study recommended for a Radio Frequency Identification system which ensure that there is a reduced machine setup time for the reduction of stock out costs. Keywords: E-procurement, Vendor Managed Inventory systems, Enterprise Resource Planning Systems, Radio Frequency Identification, Procurement Performance