Procurement Practices and Financial Performance of Kenya Meat Commission
Aminazahra, Mohamud Sigat
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Effective implementation of procurement practices significantly improves the effectiveness of purchasing decisions and thus improved firm performance. To achieve this goal, procurement Practices must be fair, competitive and must control costs. if procurement is well managed, it adds value to an organization and save time and money as well. Key benefits of proper procurement management include value for money, protection and enhancement of the environment, more efficient use of resources, greater social inclusion improved supplier relationships. 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 to experience mixed performance. Anchored on the balanced score card, the resource based theory and agency theory the study sought to determine the effect of procurement practices on financial performance of the Kenya meat commission. Descriptive Research Design was used. The study population comprised of 71 employees working in 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 were used to collect primary data. A multiple regression model was used to present the relationship between the dependent and independent variables. It was established that in Kenya meat commission, majority of the department and branches used open tendering method. It was an indication that majority of the tenders were open to the public to participate in. The findings indicated that the consistency of suppliers was vital at explaining the performance of Kenya meat commission. It was evident that material control practices significantly affected the performance of Kenya meat commission. The study concludes that the relationship between tendering practices and the financial performance of Kenya meat commission was positive and significant. The supply assessment relationship with financial performance in Kenya meat commission was insignificant and positive. The relationship between material control and financial performance of meat commission was positive and significant. The study suggests that further research to be done on inter-organizational factors affecting success of KMC.