STRATEGIC PROCUREMENT AND PERFORMANCE OF TEA PROCESSING COMPANIES IN KIAMBU COUNTY, KENYA
Abstract
Tea processing companies play a vital role in the economy of Kenya, particularly in Kiambu County, which is one of the leading tea-growing regions in the country. However, tea processing companies in Kiambu County, Kenya, face a variety of challenges that significantly impact their performance. The general objective of the study is to examine the influence of strategic procurement on performance of tea processing companies in Kiambu County, Kenya. Specifically, the study sought to establish the influence of procurement planning on performance of tea processing companies in Kiambu County, Kenya and to assess the influence of supplier management on performance of tea processing companies in Kiambu County, Kenya. This study was guided by Transaction Cost Economics (TCE) and Social Exchange Theory. The study used a descriptive research approach. This study targeted tea processing companies in Kiambu County. This study therefore targeted the management employees in these companies. In every company, the study targeted 1 top manager, 3 middle level managers and 5 lower level managers. The total target population was therefore 594 respondents. The study used Krejcie and Morgan (1970) formula to arrive at the sample size. The study sample size was 170 employees. The study's primary data collecting tool was questionnaires, which included both open and closed-ended questions. The questionnaires were pre-tested by the researcher to evaluate the data's reliability and validity. The research yielded both quantitative and qualitative results. The Statistical Package for Social Sciences (SPSS) application version 21 was utilized for analysis. Correlation analysis was used to determine the link between the independent and dependent variables. The study concludes that procurement planning has a significant effect on performance of tea processing companies in Kiambu County, Kenya. Further, the study concludes that supplier management has a significant effect on performance of tea processing companies in Kiambu County, Kenya. Based on the findings, the study recommends that the management of tea processing companies in Kenya should enhance supplier relationship management. Establishing long-term partnerships with reliable suppliers can lead to better procurement outcomes by ensuring consistent quality, timely deliveries, and favorable pricing. In addition, the study recommends that the management of tea processing companies in Kenya should implement a comprehensive risk assessment framework that includes both internal and external risks. This framework should involve regularly identifying and evaluating potential risks, such as fluctuations in tea prices, climate change, supply chain disruptions, and labor shortages.
Key Words: Strategic Procurement, Procurement Planning, Supplier Management, Performance Of Tea Processing Companies
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