PROCUREMENT MANAGEMENT AND PERFORMANCE OF SUGAR MANUFACTURING COMPANIES IN KENYA

Reginah Nyambura Mungai, Dr. Charles Ndeto

Abstract


Sugar manufacturing companies play a vital role in Kenya’s economy, contributing significantly to employment, food security, and industrial development. However, despite its importance, sugar manufacturing companies face numerous challenges that affect their performance. The main objective of the study is to determine the influence of procurement management on performance of sugar manufacturing companies in Kenya. Specifically, the study sought to determine the influence of procurement planning on performance of sugar manufacturing companies in Kenya and to establish the influence of inventory management on performance of sugar manufacturing companies in Kenya. The study used a descriptive survey research design. This study focused on sugar manufacturing companies in Kenya. According to KAM report (2024), there are 16 sugar companies in Kenya whereby 5 of them are public companies while 11 are private companies. The study therefore targeted all the 16 companies and focused on the management employees. The sample frame for this study consisted of 144 employees consisting of management employees. The sample for this study was drawn using the census method. Therefore, this study was a census of 144 employees. The study collected primary data using semi-structured questionnaires. Specifically, respondents were targeted to provide information needed for the study. Collected data was analyzed using both quantitative and qualitative techniques. In qualitative technique, the researcher performed content analysis on the findings collected from the open ended questions and presented in prose form. SPSS (version 22) was applied in analysing quantitative data where descriptive statistics was computed and presentations done in percentages, means, standard deviation and frequencies. Inferential data analysis was conducted by use of Pearson correlation coefficient, and multiple regression analysis. The study findings were presented through use of figures and tables. The study concludes that procurement planning has a positive and significant effect on the performance of sugar manufacturing companies in Kenya. The study also concludes that inventory management has a positive and significant effect on the performance of sugar manufacturing companies in Kenya. Based on the findings, the study recommends that the management of sugar manufacturing companies in Kenya should implement integrated Enterprise Resource Planning (ERP) systems. An ERP system centralizes data and streamlines key business processes such as procurement, inventory management, production planning, and financial reporting.

Key Words: Procurement Management, Procurement Planning, Inventory Management, Performance of Sugar Manufacturing Companies


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References


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