STRATEGIC PROCUREMENT PRACTICES AND PERFORMANCE OF PROFESSIONAL BODIES IN NAIROBI CITY COUNTY, KENYA

Abstract

Strategic procurement is essential for competitiveness of procurement function in any organization. The major objective of strategic procurement is to engage with suppliers who align with the strategic business and operational goals. The general objective of this study was to assess the effect of strategic procurement practices and performance of professional bodies in Nairobi City County, Kenya.  The specific objectives were; to determine effect of strategic contract management and strategic inventory management on performance of professional bodies in Nairobi City County, Kenya. The study was guided by contract theory and inventory control theory. The study employed descriptive research design. The target population was 81 management staff of the professional bodies from the procurement, finance, and ICT departments. Census was used hence all 81-management staff was sampled. Primary data was collected using questions. A pilot was conducted with 10% of the sample hence 8 management staff. Validity was  tested using content and construct validity. Cronbach's Alpha Coefficient was used to measure questionnaires’ reliability. Data was analyzed with descriptive statistics (frequency, percentage, mean) and inferential statistics (correlation, regression) and tabulated. Findings show that; there is a moderate significant relationship between strategic contract management and performance (r=0.388, r=0.001), a strong significant relationship between strategic inventory management and performance (r=0.515, r=0.000). The conclusions are; the institutions ensure that obligations and responsibilities are well defined and contract management teams are well informed on the contract terms. The institutions have good inventory management practices but they have failed in automation of the inventory management systems which would help to improve the levels of service delivery. The researcher recommends that the management should; implement strategic contract management practices within the existing legal framework provided by public procurement acts and regulations, they have put in place an inventory management systems achieve accurate demand forecasting so as to keep appropriate stock levels.