Effect of Material Control Practices on Financial Performance of the Kenya Meat Commission in Kenya

Abstract

Effective implementation of material control practices significantly improves the effectiveness of purchasing decisions and thus improved firm performance. To achieve this goal, material control practices must be fair, competitive and must control costs. However, in spite of the immense attention given to procurement practices and financial performance and the relationship that exist between the two constructs many organisations both private and public continue experience mixed performance. Anchored on the resource based theory the study sought to determine the effect of material control on financial performance of the Kenya meat commission. Descriptive Research Design was used. The study population comprised of Kenya Meat Commission headquarters in Athi River, Ladhies branch in Nairobi, Mombasa deport and the user department in Athi River. Since the population was small and of manageable sizes, a census study was done. Semi structured questionnaires was used to collect primary data. The respondent argued that the inventory quantities are very important in ensuring that these effective and efficiency in the operation of Kenya meat commission and ensuring that there is constant supply of meat to the users in Nairobi and its environment. It was evident that material planning control system (mean of 4.75) greatly affected the performance of Kenya meat commission. The finding on distribution material in Kenya meat commission as indicated by a mean of 4.00 presented that it greatly affected the financial performance of Kenya meat commission. The study concluded that the relationship between material control and financial performance of meat commission was positive and significant.