Abstract
This study sought to determine the effect of supplier evaluation on performance of procurement function of Public Universities. The Public Universities campuses in Kericho County were involved in the survey. To achieve the objective of the study, the researcher tested three hypotheses; supplier quality commitment does not have significant effect on performance of procurement functions of public universities campuses in Kericho County, financial stability of supplier does not have effect on the performance of procurement function of public universities campuses in Kericho County and supplier competence does not have significant effect on performance of procurement function of public universities campuses in Kericho County. This was a cross sectional survey study where data was collected in public universities campuses in Kericho County at a single point in time. Population of the study was the employees in the public universities’ campuses in Kericho County while the sample was selected employees in finance and procurement and accounts and finance departments. Data was collected through structured questionnaires that were administered through drop and pick technique. The collected data was analyzed through SPSS version 21. Mean and standard deviations were used to describe the variables in the study while regression analysis was conducted to determine the effect of supplier evaluation on performance of procurement function of the public universities campuses in Kerico County. The findings of the study revealed that suppliers’ quality commitment, suppliers’ financial capacity and suppliers’ competence have significant effect on performance of procurement of procurement function of public universities campuses in Kericho County individually with t=3.144; p=0.003, t=1.101; p=.046 and t=4.335; p=0.000 respectively and collectively with R-square value of 0.661. From the findings, the study recommends that experts who are knowledgeable and have expertise should be consulted in conducting supplier evaluation. Supplier evaluation criteria should focus on suppliers’ quality commitment, financial capacity and competence should be considered when awarding supply contracts to suppliers. The study suggests that a comparative study should be conducted to establish if there is difference in the effects of supplier evaluation on procurement performance between physical product organizations and service organizations. Further studies should be conducted to relate supplier evaluation and procurement performance in private universities in Kenya to establish whether there is any difference. Lastly, further study may also be conducted on the application of seven progressive steps of supplier evaluation.
Highlights
Organization’s ability to offer consistent quality and compete largely depends on its access to quality products and services (CIPS, 2013)
According to Nadir (2012) supplier evaluation is perceived as a tool which provides the buying firm with a better understanding of ‘‘which suppliers are performing well and which suppliers are not performing well’’ but studies reveal that even after having carried out an in-depth supplier evaluation plus appraisal coupled with the enactment of Public Procurement and Disposals Act (PPDA) of 2005 and other policies on supplier evaluation, inefficiencies still exist ranging from
According Pamela (2013) in her study on the determinants of supplier selection and evaluation in Pakistan Telelecom industry, supplier financial capacity expertise is one of the key factors which determine the eventual performance of both the supplier and procurement performance, the study depicted high correlation between the financial capacity of supplier and ability of supplier to deliver which in turn enhances procurement performance indicating a need for a strategic alliances for improved performance of the parties
Summary
Organization’s ability to offer consistent quality and compete largely depends on its access to quality products and services (CIPS, 2013). This is true in competitive and globalized markets. Organizations are constantly under pressure to find ways to cut material and production costs through engaging in strategic supplier selection process and evaluation (Weber, 2008). Any organizational success often hinges on the most appropriate selection of its partners and suppliers. Appropriate suppliers selection is one of the fundamental strategies for enhancing the quality of output of any organization, which has a direct influence on the company’s competitiveness and reputation (Adamyan, 2002).One of the techniques used by organization to select best suppliers is supplier evaluation. To sustain effective and reliable sources of supplies, buyers should select their suppliers carefully and evaluate them regularly (Humphreys, 2003)
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