INFLUENCE OF STRATEGIC PROCUREMENT PRACTICES ON PERFORMANCE OF LOGISTICS FIRMS IN NAIROBI CITY COUNTY

Abstract

The purpose of the study was to assess the influence of strategic procurement practices on the performance of logistic firms in Nairobi City County. The study specifically sought to establish how supplier relationship management, and global sourcing influence performance of logistics firms in Nairobi City County. The study adopted descriptive research design. The target population for this study was 575 comprising of senior and mid-level staff from the following departments; procurement, logistics, warehouse and finance, of 575 logistics firms headquarters offices in Nairobi City County. The study used a sample size of 10%, which is 58. The study used primary data which was collected using close ended questionnaires. The assistant researcher officers assisted the researcher to drop and collect the questionnaires to and from the respondents and where there was need an extension was given to allow the respondents to fill the questionnaires. A pilot test of 10% was done to confirm reliability and validity of the instruments prior to the actual collection of data. Statistical package for social sciences (SPSS) computer software for data analysis was used to conduct the data analysis task. The statistics generated include descriptive statistics and inferential statistics. Microsoft excel was used to complement SPSS especially in production of diagrams and tables. A multiple linear regression model was used to evaluate the relationship of independent variables against the dependent variables to obtain inferential results. The study concludes that supplier relationship management has a positive and significant influence on performance of logistics firms in Nairobi City County. Also, global sourcing has led to the firms achieving strategic advantage and increase in profits made. The study recommends that heads of supply chain in logistics firms in Nairobi City County should adopt strategic procurement practices.