Strategic Procurement Practices and Organizational Performance in the Construction Industry in Kenya: A Case Study of Allied Plumber Ltd
Abstract
The general objective of the study was to identify the importance of strategic procurement on organizational performance. The study used descriptive research design and a target population of 53 employees of Allied Plumbers limited drawn from planning and finance, human resource and administration, procurement, engineering and operations, tendering and contracts, and site and construction departments. The study used stratified sampling together with Yamane formula; a sample of 47 respondents was obtained from whom data was obtained using structured questionnaires. Data analysis involved use of descriptive statistics and inferential analysis. The research found out that strategic procurement plays a pivotal role in organizational performances. The study further found that the organization frequently executes a strategic procurement practice that is identification and selection of suppliers, procurement negotiation prior to procurement and contract management, good supply chain relationships with suppliers, good inventory management systems, but rarely delegate procurement authority. The study concluded that organizations that fashion prudent strategic management practices have an upper hand slithering through the dynamics of change and eventually emerging as a performer and successful organizations, and strategic procurement is a core capability of the organization. The study recommends that organization need to frequently delegate expertise procurement roles to technical team for quality purchases translating to quality and sustainable installations leading to gaining competitive advantage.
Key words; Strategic Procurement, Organizational Performance
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