EFFECT OF REVERSE LOGISTICS ON PROCUREMENT PERFORMANCE AMONG STATE CORPORATIONS IN KENYA: CASE OF KENYA MEDICAL SUPPLIES AUTHORITY
Anne K. Manyaga
Msc Procurement and Logistics,
Jomo Kenyatta University of Agriculture and Technology
Dr. David Kiarie Mburu
Department of Procurement and Logistics,
Dedan Kimathi University of Technology
CITATION: Manyaga, A., K. & Mburu, D., K. (2018). Effect of Reverse Logistics On Procurement Performance Among State Corporations in Kenya: Case of Kenya Medical Supplies Authority. International Journal of Human Resources and Procurement. Vol. 7 (3) pp 1 – 36.
ABSTRACT
The general objective of the study was to determine effects of reverse logistics on procurement performance among state corporations, case of Kenya Medical Supplies Authority. Public procurement is subjected to dynamic changes and trends of the market and interests because of growing government expenditure and funding from development partners. Cost effective management of the procurement process can significantly influence the growth and development of the Kenyan economy. A survey conducted by Synovate on procurement performance in outsourcing efforts among state corporations, 66 percent of the logistics efforts was considered failure and 34 percent was considered successes. The study was guided by the following research objectives: to determine the effect of third party logistics; to establish the effect of information management; to assess the effect of lean agile manufacturing; and to evaluate the effect on waste management in procurement performance in Kenya Medical Supplies Authority. The study will adopt a descriptive survey employing cross sectional survey design aimed at establishing the effects of reverse logistics on public procurement performance among state corporations in Kenya. The design seeks to capture both qualitative and quantitative aspects. The target population of this study were 240 employees in Kenya Medical Supplies Authority, as at 31st May 2015. The sampling Frame will consist of managing director, employees in accounts department, employees in purchasing, transport and warehouse departments since they have accurate information on the topic under study. A sample of 150 respondents were picked using stratified random sampling techniques based on strata in the management level. Data was collected using a structured questionnaire. Completed questionnaires were edited for completeness and consistency, checked for errors and omissions and then coded and analyzed qualitatively and quantitatively. Multiple Linear Regression Analysis was used to determine the relationship between the variables and the procurement performance of state corporations in Kenya. The coefficient of determination (R-Square) resulting from the linear regression was used to determine the goodness fit of the model. From the findings the respondents agreed that third party logistics, information management, lean agile manufacturing and waste management affect procurement performance of Kenya Medical Supplies Authority. 3PL help concentrate firm’s resources to their core-competence and creating value by having flexibility and adaptability against changing market environment. The study recommend practices should be improved on provision of dependable services, quality outsourced services, reduction of fuel consumption, sharing of information through information technology, reduction of pollutant emissions and prequalification of suppliers that are aware of environmental issues
Key Terms; Information Communication Technology, Information management, Lean agile Manufacturing, Reverse Logistics, Third Party Logistics, Waste management
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