Influence of Strategic Procurement Policies on Supply Chain Performance of County Governments in Kenya; A case of Nairobi County
Abstract
Strategic procurement is the process of creating alignment and consistency of action that establishes the long-range objectives and overall strategy by which the procurement function fulfils its mission. Strategic procurement entails the transformation of an organization's mission, goals, and objectives into measurable activities to be used to plan, budget and manage the procurement function. As county governments respond to demands to become more efficient and effective, procurement professionals are expected to focus primarily on the strategic aspects of procurement and less on routine transactions. A company procurement strategy can be defined by its sourcing concepts, portfolio approaches, process approaches and task-focus. It crafts sourcing procedures for goods and services at right price, time, the right source, the right quality and quantity for the enhancement of business growth. The structured procedures for strategic procurement consult the market for the purchase of goods and services to guarantee the widest possible participation of economic operators, ensure the transparency of operations, and obtain the desired quality of services, supplies and work at the best possible price. In Kenya, County governments have been losing a lot of public funds through poor procurement practices which are a result of the failure of the county governments to comply with the procurement policies in place (AG, 2018). This has resulted in a poor performance recorded by the counties since 2013. The study was guided by three objectives; to establish the effect of adherence to strategic procurement policy on the performance of County governments in Kenya, to establish the influence of strategic acquisition procedures on the performance of County governments in Kenya and to recommend the best strategic procurement practices to the County governments in Kenya. The study was informed by institutional theory and game theory. The paper used a desk study review methodology where relevant empirical literature was reviewed to identify the main themes. The study concluded that strict adherence to procurement policies results in improved performance. The study recommended that to boost the performance of the supply chains of County governments in Kenya, there is a need to invest in various strategies.
Keywords: Strategic, Procurement, Policy, Acquisition & Performance.
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