Examination of Effects of Internal Procurement Processes on Performance of Dairy Producer Co-operative Societies in Kenya
Keywords:
Procurement processes, requisition procedures, ordering procedures, inspection procedures and performance.Abstract
Procurement is the nerve center of performance in every institution and therefore requires adoption of a strict system. Kenyan dairy Co-operative societies lose about 4 billion shillings every year due to inflated procurement quotations and post–harvest losses brought about by inadequate facilities. Efficient integration of internal procurement processes can contribute greatly in eliminating these challenges but no Co-operative has strongly been able to integrate procurement processes in their systems. This study examines effects of internal procurement processes on performance of dairy producer Co-operative societies in Kenya. Specifically, it examines effect of requisition procedures on performance of dairy producer Co-operative societies in Kenya, to determine effect of ordering procedures on performance of dairy producer Co-operative societies in Kenya, and establish effect of inspection procedures on performance of dairy producer Co-operative societies in Kenya. A descriptive correlational design was adopted and target population comprised of 72 dairy producer co-operative societies involved in production and processing of dairy products in Kenya. Census technique was employed for sampling. A questionnaire was used as the main data collection instrument and were reviewed for validity and reliability through a pilot study. Data collected was analyzed through descriptive and regression methods. The study established that requisition procedures, ordering procedures and inspection procedures had significant positive relationship with performance of dairy producer co- operative societies in Kenya. Findings revealed that requisition procedures (p=0.001), ordering procedures (p=0.0041) and inspection procedures (p=0.0015) had significant positive effects on performance of dairy producer co-operative societies in Kenya. Therefore, the study recommends that for better performance of dairy producer Co-operative societies in Kenya, the co- operatives should integrate efficient requisition procedures, ordering and inspection procedures in their procurement functions.
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