STRATEGIC PROCUREMENT SOURCING AND PERFORMANCE OF COFFEE COOPERATIVE SOCIETIES IN CENTRAL REGION, KENYA
Keywords:
Strategic Procurement Sourcing, Procurement Planning, Material Acquisition, Performance of Coffee Cooperative SocietiesAbstract
In Kenya, coffee cooperative societies play a critical role in supporting smallholder farmers by organizing the collection, processing, and marketing of coffee, thereby increasing efficiency and ensuring better prices through collective bargaining. However, coffee cooperative societies in Central Region, Kenya, face several challenges that impact their ability to thrive and support the local farming communities. The general objective of the study was to examine the influence of strategic procurement sourcing on performance of coffee cooperative societies in Central Region, Kenya. Specifically, the study sought to assess the influence of procurement planning on performance of coffee cooperative societies in Central Region, Kenya and to evaluate the influence of material acquisition on performance of coffee cooperative societies in Central Region, Kenya. This study was guided by Resource-Based View (RBV) and Supply Chain Management (SCM) theory. For this study, descriptive research design was utilized. According to CAK (2024) report, central region which comprises of Kiambu, Kirinyaga, Nyeri, and Murang'a counties has a total of 550 licensed and registered coffee cooperative societies. The total population in this study was therefore 550 procurement managers from the 550 coffee cooperative societies. The study’s sample size of 226 was reached at using Krejcie and Morgan sample size determination formula (Russell, 2019). The 226 respondents were chosen with the help of stratified random sampling technique. This study used semi-structured questionnaires and Secondary Data Collection Sheet to collect the primary data for the study. Data from questionnaires was coded and analyzed using the latest Statistical Package for Social Sciences (SPSS) computer software. Quantitative data collected was analyzed using descriptive statistics techniques. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. The study concluded that procurement planning has a positive and significant effect on performance of coffee cooperative societies in Central Region, Kenya. In addition, the study concluded that material acquisition has a positive and significant effect on performance of coffee cooperative societies in Central Region, Kenya. Based on the findings, the study recommends that the management of coffee cooperative societies in Central Region should prioritize and enhance their procurement planning processes. This can be achieved by adopting a more structured and forward-thinking approach to identifying material needs, forecasting demand, and aligning procurement strategies with the cooperative’s long-term goals.
Key Words: Strategic Procurement Sourcing, Procurement Planning, Material Acquisition, Performance of Coffee Cooperative Societies
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