Effects Of Electronic Procurement On Supply Chain Performance In Food Manufacturing Firms In Nairobi County, Kenya

Abstract

Through digitizing of information and data, and opportunities that are provided by the internet, it creates a foundation to rationalize and improve efficiency in the processes of administration of the organization. Based on the character of product and service, e- procurement may not suit all goods where there is need for a very strong association between the buyer and the supplier. This established the effects of e-procurement on supply chain (SC) performance in food manufacturing firms in Nairobi City County. The study specifically sought to determine the effect of tendering, e-invoicing and e-payment on SC performance in food manufacturing firms. The methodology guiding the study constituted descriptive research design; the target population was selected 78 staff from the food manufacturing firms. The sampling design was census. The data collection techniques involved questionnaires while data was analyzed quantitatively aided by SPSS software. The presentations of findings involved use of frequency distribution tables and graphs. The study found that e-tendering significantly and positively related with SC performance in food manufacturing firms; e-invoicing significantly and positively related with SC performance in food manufacturing firms; and e-procurement significantly and positively related with SC performance in food manufacturing firms. The study recommends management of the food manufacturing companies should ensure that the technological architecture used in electronic procurement is compatible; management of the firms should have financially viable e-invoicing solution through creation of critical mass through alliance partners an providers of technology to add the necessary desirables of e-invoicing adding necessary invoicing; Also, management of the firms should integrate e-payment in their business transactions.