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ROLE OF PROCUREMENT PLANNING ON PERFORMANCE: A CASE AT NYAYO TEA ZONES DEVELOPMENT CORPORATION


Ruth Muthoni Kihara

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Gordon Karanja Ngugi

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Procurement is generally the process of acquiring goods and services as well as hiring contractors and consultants to carry out works and services. Statistics from Republic of Kenya ROK (2012) show that Nyayo Tea Zone Development Corporation, (NTZDC) had entered into bankruptcy for an amount of over Ksh. 14 million in debt owed by supplies and other stakeholders. The general objective of the study is to establish the role of procurement planning on performance at Nyayo Tea Zones Development Corporation. The specific objectives of this study were to determine whether supplier participation affects the role of procurement planning on performance to investigate how ICT affects the role of procurement planning on performance. To find out how staff competency affects the role of procurement planning on performance and finally to investigate how operational cost affects the role of procurement planning on performance. The study adopted Descriptive Research Design to support and meet the objectives of the research. The study population to be used will be 600 employees and care was taken to ensure that the accessible population sampled was of a size able to inform the researcher on the research objectives. The researcher used both primary and secondary data. Primary data was collected using self-administered questionnaire. The researcher carried out a pilot study to pre-test and validate the questionnaire. The aim of the pilot study was to test the reliability of the questionnaires. Analysis was done using SPSS Version 20 software. The study also found that organization embrace the use of modern technology in procurement planning .New technologies are promising to save costs, to improve customer and supplier relationships, business processes and performance, and to open new business opportunities. The study also concludes that technologies allow organizations to respond better to existing challenges and improve the anticipation of future developments and that unified data gives you the information integrity required to develop compliance and procurement management practices.


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