EFFECTS OF DIRECT PURCHASING ON PERFORMANCE

OF STORE PERSONEL A CASE STUDY OF SONY SUGAR

COMPANY LIMITED

RESEARCH PROJECT
CANDIDATES NAME : WYCLIFE OTIENO ODOYO
INDEX NUMBER : ....................
SUBJECT CODE :
INSTITUTION : GODOMA TECHNICAL TRAINING
INSTITUTE

THIS PROJECT IS SUBMITED TO THE KENYA NATIONAL

EXAMINATION COUNCIL IN PARTIAL FULLFILLMENT FOR THE
AWARD OF CRAFT IN SUPPLY CHAIN MANAGEMENT

SERIES : NOVEMBER SERIES 2021

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STUDENTS DECLARATION
This project is my original work and has not been presented elsewhere for the purpose of examination.
STUDENTS NAME : WYCLIFE OTIENO ODOYO
SIGNATURE :
DATE :

SUPERVISORS DECLARATION.
The research project has been submitted for examination purpose with my approval as the college
supervisor.
SUPERVISOR NAME: RICHARD NGALA
SIGNATURE :
DATE :

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 DEDICATION
This project is dedicated to my parents, relatives, brothers, sisters and my friends for their concise and
unflinching financial support throughout the period of my project work.

iii
 ABSTRACT
The purpose of the project was to determine the efficiency of purchasing and supplies management
efficiency in organizations. The general objective of the study is to establish the ways in which the
organizations overcomes the challenges experienced in the purchasing of supplies and equipment. The
specific objectives were: determining the effects of quality, order quality, price and source location of
the materials and equipment purchasing by the organizations.
The minor significant of the study was to enable the researcher to fulfill the requirement for the award of
Craft in Supply Chain Management. The organization benefits from the research through the use of the
concluded information to determine their profitability of their organization.
The research was concluding by use of representatives sampling method in which there was a population
of 60 members and sample size of 35 respondents. The study was intended to achieve organizations
objectives. The instruments used in the study were questionnaires; both open and closed questions in the
collection of data. Data was analyzed and presented on frequency tables, figures and graphs.
The findings show that majority of the respondents believe that purchasing and supplies department is a
very important function in an organization. It shows that majority of the respondents believe that the
quality was not inspected in accordance with the International Standards of Organizations. The order
quality of materials and equipments was not purchased in accordance with the specifications. The
supplies of materials and equipments had been exaggerated by the suppliers leading organizations to
incur losses in delivery always. The recommendations show that there was need for the organization to
improve the quality systems that are in place. The right quality of materials should be ordered and
maintained. The selection of the supplies should be selected carefully so as to get the best suppliers and
market research should be done to get the right price of the materials in the market.

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 ACKNOWLEDGEMENT
My acknowledgement goes to the Godoma Technical Training Institute head of Business Department
Mr . John Muoki. My special thanks goes to my research teacher Mr. Ngala for guidance, advice and
encouragement they showed me in the course of preparing this project.
Special acknowledgements to my family members for the financial support they showed me and also for
my friends for the continued support they showed me in the process of writing this project.

ABBRIVIATIONS
AU African Union
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NYS National Youth Service
ERP Enterprise Resource Planning
ISO International Organizations Standards
EDI Electronic Data Interchange
EOQ Economic Order Quantity
WWW ISO World Wide Web International Organizations Standards

DEFINITION OF TERMS
Professionalism This is competence or skills expected of a professional
Supply Make goods and services available for someone

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Product Anything that can be ordered in the market to satisfy a need
Procurement Act of obtaining something somewhere including force
Quality This is the fitness to use or conformity to the requirement

LIST OF TABLES

Table 3.1 Target population in the study...............................................................................................15

Table 3.4 Sampling design.......................................................................................................................16

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Table 4.1 Ages of the Respondents.........................................................................................................18
Table 4.3 Represents Level of Education of the Respondents.............................................................19
Table 4.4 Represents the responses on years of the work experience.................................................20
Table 4.5 Represents the responses on job designation of the respondents.......................................21
Table 4.6 Represents responses and the importance of price to purchasing function......................22
Table 4.7 Represents response on the criteria of selecting suppliers..................................................23
Table 4.7 Shows percentage effect of material quality.........................................................................24
Table 4.8 Represents the effects of order quantity on purchasing and supplies function................25
Table 4.8 Represents the effects of the right source of the suppliers on the purchasing and supplies
function.....................................................................................................................................................26

LIST OF FIGURES

Figure 1 A SCHEMATIC CONCEPTUAL FRAMEWORK................................................................7

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Figure 2 Represents the Response of the Ages of the Respondents.....................................................18
Figure 3 Represents the responses of the years of experience of employees......................................20
Figure 4 Represents the responses on the job designation of employees in the organization...........21
Figure 5 Represents the response on importance of the price to the purchasing function...............22
Figure 6 Represents response and the criteria of selecting suppliers.................................................23
Figure 7 Represents the responses on the effects of the quality on the purchasing function...........25

TABLE OF CONTENTS
STUDENTS DECLARATION......................................................................................................................II
SUPERVISORS DECLARATION................................................................................................................II
DEDICATION..............................................................................................................................................III
ix
ABSTRACT..................................................................................................................................................IV
ACKNOWLEDGEMENT.............................................................................................................................V
ABBRIVIETIONS........................................................................................................................................VI
DEFINITION OF TERMS..........................................................................................................................VII
LIST OF TABLES.....................................................................................................................................VIII
LIST OF FIGURES......................................................................................................................................IX
CHAPTER ONE............................................................................................................................................1
INRODUCTION............................................................................................................................................1
BACKGROUND OF STUDY........................................................................................................................1
STATEMENT OF THE PROBLEM............................................................................................................2
OBJECTIVES OF THE STUDY...................................................................................................................3
1.4.1 GENERAL OBJECTIVES...............................................................................................................3
SPECIFIC OBJECTIVES.............................................................................................................................3
RESEARCH QUESTIONS...........................................................................................................................4
1.6 SIGNFICANCE OF THE STUDY..........................................................................................................5
1.6.1 THE RESEARCHER............................................................................................................................5
1.6.3 TO THE TOP MANAGEMENT..........................................................................................................5
1.6.4 TO THE PURCHASING STAFF.........................................................................................................5
1.6.5 TO OTHER RESEARCHERS.............................................................................................................5
1.7 LIMITATIONS OF THE STUDY...........................................................................................................6
1.8 SCOPE OF THE STUDY........................................................................................................................7
1.9 DEFINITION OF TERMS......................................................................................................................7
CHAPTER TWO...........................................................................................................................................8
2.0 LITERATURE REVIEW......................................................................................................................8
2.1 INTRODUCTION..................................................................................................................................8
2.2 PAST STUDIES.....................................................................................................................................8
THEORITICAL LITERARURE REVIEW.................................................................................................8
2.2.1 THE REASONS FOR THE DIRECT PURCHASING......................................................................8
2.2.2 EFFECTS OF DIRECT PURCHASING............................................................................................9
PROBLEMS AND CHALLENGES OF GLOBAL SOURCING...............................................................10
2.2.3 LITERATURE REVIEW OF REASONS FOR DIRECT PROCUREMENT.................................12
2.2.4 LITERATURE REVIEW ON EFFECTS OF DIRECT PURCHASING........................................12
2.2.5 LITERATURE REVIEW ON THE CHALLENGES OF DIRECT PURCHASING......................13
2.3 CRITICAL LITERATURE REVIEW................................................................................................13
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2.4 SUMMARY..........................................................................................................................................14
CHAPTER THREE.....................................................................................................................................15
3.0 RESEARCH DESIGN METHODOLOGY...........................................................................................15
3.1 INTRODUCTION..................................................................................................................................15
3.2 REAEARCH DESIGN...........................................................................................................................15
3.3 TARGET POPULATION......................................................................................................................15
3.4 SAMPLING PROCEDURES................................................................................................................16
3.5 DATA COLLECTION INSTRUMENTS AND PROCEDURES.........................................................16
3.5.1 QUESTIONNAIRE.............................................................................................................................16
3.5.2 RELIABILITY AND VALIDITY.......................................................................................................17
3.6 DATA ANALYSIS.................................................................................................................................17
CHAPTER FOUR.......................................................................................................................................18
4.0 DATA PRESENTATION, ANALYSIS AND INTERPRETATION.....................................................18
4.1 INTRODUCTION..................................................................................................................................18
4.2 RESPONSE RATE................................................................................................................................18
4.3 THE HIGHEST LEVEL OF EDUCATION.........................................................................................19
4.4 THE EXPERIENCE OF THE RESPONDENTS..................................................................................20
4.5 JOB DESIGNATION.............................................................................................................................21
4.6 QUANTITATIVE ANALYSIS..............................................................................................................22
4.7 CRITERIA FOR SELECTING SUPPLIERS.......................................................................................23
THE EFFECTS OF THE FOLLOWING FACTORS ON THE PURCHASING FUNCTION.................24
4.9 QUALITATIVE ANALYSIS.................................................................................................................27
THE IMPORTANCE OF THE RIGHT QUALITY...................................................................................27
CHAPTER FIVE.........................................................................................................................................29
5.0 FINDINGS, CONCLUSION, AND RECOMMENDATIONS..............................................................29
5.1 INTRODUCTION..................................................................................................................................29
5.2 SUMMARY OF THE FINDINGS.........................................................................................................29
5.3 CONCLUSIONS....................................................................................................................................30
5.4 RECOMMENDATIONS.......................................................................................................................31
5.5 SUGGESTIONS FOR FUTURE RESEARCH.....................................................................................32
APPENDIX I................................................................................................................................................33
QUESTIONNAIERE FOR PURCHASING/PROCUREMENT PERSONEL...........................................33
APPENDIX II..............................................................................................................................................36
ESTIMATED BUDGET..............................................................................................................................36
xi
APENDIX III...............................................................................................................................................37

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 CHAPTER ONE
INRODUCTION
The chapter is meant to give the overview of background of the study, statement of the problem,
objectives of study, research questions, significance of the study, scope and limitations of the study and
definition of terms.

BACKGROUND OF STUDY
Direct material purchasing is a basic function common to all types of organizations, it is a basic function
because no business can operate without it. The function contributes greatly to the efficiency of store
operations in organizations.
Dobbler et all (2000) observes that prior in the 1950s more often than not direct material purchasing was
a clerical order picking unit in ensuring year’s progressive firms shaped their direct material purchasing
with a managerial. Emphasise professionalism and contribute to company’s competitive edge.
According to British Chartered Institute of Purchasing and Supply (2003) and journals such as European
Journal of Purchasing and Supplies Management, defined material purchasing as the process undertaken
by the organization unit either as a function or as a part of an interlinked supply chain, it is possible for
procuring or assisting users to procure in the most efficient manner, the required supplies, at the right
time, quality, quantity and the right source. Therefore, contributes to the competitive advantage of the
organization and foster full achievement of cooperate strategy.
Purchasing in the modern world is a very important function in many organizations because it
contributes to the profitability of the organization. No business organization can operate efficiently
without the purchasing function aid organizational competitiveness by adopting purchasing techniques
and products that strengthens its competitive merits and fully participates in formulation of the strategic
plans.
Keong (2005) explains that primary goals and aims of purchasing are to ensure uninterrupted flow of
raw materials at a total minimum cost, to improve the quality of finished produce, and to optimise
customer satisfaction. The material purchasing department can contribute to the objectives below of the
organization by involving suppliers who can contribute to the improvement of quality of the raw
materials, and involving suppliers and purchasing personnel in the new product design and development
efforts, purchasing is a sensitive link between the sources of supply and the organization itself, with
support coming from overlapping activities to enhance manufacturability. In 1990s many organizations
became profitable largely through proper management of inventories and the evolution of materials
purchasing.
Data (2008) explains materials purchasing has a highly important demanding analytical capability and
intelligence. It is no longer considered a clerical activity consisting of receiving requisitions, consulting
catalogues and selecting of suppliers. It requires demanding knowledge of all kinds, and it also require
virtue and ability to cope along with all circumstances, honesty, ethics, integrity and excellent
economically performance.
Lyons (2005) claims efficiency management has being able to use resources well to achieve goals with
effectiveness as a measure of appropriateness of goals that the organization is purchasing to achieve

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STATEMENT OF THE PROBLEM
Many organizations have been facing problem of management of their functions because it was regarded
as a clerical function. The procuring of the materials from their suppliers, indeed efficient management
procurement management has been to various organizations, despite the measures have been set in place
by the management there is still many problems. The challenges which are still encountered in the units
of measure since clear specification and unambiguous specification are essentials and are vital in aid in
the assurance that the right quality will be provided.
Additional inventories have been difficult to determine the quantity needed when purchasing, like
carrying cost, the purchase cost, and even the administrative cost since the cost of issue of payment
terms and conditions arises when the organization prefer to pay for the goods after receipt and inspection
while supplier would prefer advance payment prior to commencing work hence purchasers’ capital is
tied up. The quality of the materials are requirements to be fulfilled by the suppliers but they are not able
to fulfil anyway. This has brought poor productivity in many organizations.
To overcome this problem, the research project I have done will be a base for the organizations to know
how to manage their departments often majorly procurement department. There should be rules set aside
to be followed by the procurement officers so as to improve immediately. The top management in
organizations should be the ones to be in spearhead training the employees on how to fasten efficient
management.

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OBJECTIVES OF THE STUDY
1.4.1 General objectives
The general objective of the research was to find out the effects of purchasing and supply management
in organizations.
Specific objectives

i. To find out reasons for direct purchasing in organizations.

ii. To establish effects of direct purchasing on the performance of store personnel.
iii. To identify challenges of using direct purchasing in the organizations.

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RESEARCH QUESTIONS
i. How does direct material purchase affect the operations of the organizations?
ii. What effect does direct material purchasing have on the operation of the organizations.
iii. What are the challenges of using direct material purchasing?

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1.6 SIGNFICANCE OF THE STUDY
1.6.1 The researcher
The minor purpose of the study was to enable the researcher to fulfil the requirement for award of
diploma in purchasing and supply chain management.
1.6.2 The organization
The organization benefits from the research by use of the concluded information to determine their
profitability through efficient purchasing of the materials. Other organizations who are interested in
venturing into provision of the same services, they use the research information as a benchmark for
improvement.
1.6.3 To the top management
The top management use the information concluded in the improvement of efficiency of material
purchasing and function. These are people who are concerned with more strategic issues, so it is
essential for them to understand and compile project in their operations.
1.6.4 To the Purchasing staff
It is vital to the purchasing staff since it provides them with knowledge to conduct out their programmes
and use information as reference to enable them eliminate chances of inefficiency for the betterment of
the organization.
1.6.5 To other researchers
Researchers who are interested in future research in the same problem uses it as a base of the study.
Furthermore, they only need to work and concentrate on the areas that I have not done in order to
enhance the organization to get more useful information on the purchasing and supplies function.

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1.7 LIMITATIONS OF THE STUDY
The feeling of the respondents is that the aim of the research was to victimise them because of
the weaknesses they may be having. The employees feared free exposure of their weaknesses to
the researcher because they thought by doing so they were terming it as confidential. They did
not allow the researcher to see the senior managers because they perceive it was a threat as the
researcher would use the information for bad intentions that can affect the organization
functions. Subsequently, the managers were not friendly all because they sealed away whenever
the researcher was to approach them, there was also unwillingness of some respondents to
answer the questionnaire terming it to be time consuming, lastly there was tight security and it
posed difficulties for the researcher to access some of the organizations documents, this made it
difficult to get all the right information from the respondents, inadequacy of money also posed a
challenge to the researcher to conduct his studies effectively.

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1.8 SCOPE OF THE STUDY
The research was conducted in Muhoroni Sugar Company in Kisumu county Muhoroni sub-
county. The study was to investigate the efficiency of purchasing and supply of materials and
equipment.
The target population of sixty members of staff was selected with a sample size of 35 members.it
was based on the departments including Muhoroni agro-chemicals, purchasing and information
technology which were each given chance for being sampled and other employees will be
sampled from administration section, who are the junior staff members and they include clerks
and secretaries. The researcher used the questionnaire and the instrument for collection of the
data. The research covered the required time.

Figure 1 A SCHEMATIC CONCEPTUAL FRAMEWORK

Independent Variables Dependent variables

Quality of materials

Quantity of materials
Direct Purchases
Price of materials

Source of location

1.9 DEFINITION OF TERMS

Professionalism This the competence or skill expected of a professional
Supply Make goods, works and services available to someone
Product Anything that can be offered to the market
Procurement An act or process of obtaining something in any way including
theft and
Donation.
Quality This is the fitness for use or conformity to the requirements.

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 CHAPTER TWO
2.0 LITERATURE REVIEW

2.1 INTRODUCTION
The chapter presents the various literatures existing in the subject in terms of introduction, past
studies, critical review, summary and conclusions.
2.2 PAST STUDIES
The purchasing and supplies management has been applied in many organizations. It has
occupied a lot of literature in today’s public sector and private sector.
THEORITICAL LITERARURE REVIEW
2.2.1 The Reasons for The Direct Purchasing
Direct exporting involves an organization selling goods directly to a customer in an international
market. According to Dawat (2005) international direct purchasing is viewed to have aided in
reduced dependence on your local market hereby resulting to an improvement in the market
product service offer.
Charles II CJ (2006) termed direct international purchasing as one of the most effective activity
that helps firms and organizations in increased chances of success has a lot of cost and legal
procedures are adversely reduced. David South Africa entrepreneur (2001) in his explanation
highlights that direct purchasing is an effective procurement method which organizations aiming
at maximization of cost should use as it greatly contributes to efficiency in the performance of
supply chain personnel.
Martin Dalop (2002) in explanation states that many organizations which need to optimize their
international procurement activities should opt for direct procurement, since it aims at enhancing
productivity in general. Garwin (1996) defines quality direct procurement as taking into account
all the dimensions of the quality products in the market which in turn help the organizations, in
gaining the economic advantages of market such as competitive price and value for money.
Lyons (2005) suggested the following reasons for the staff to have knowledge about
specifications, they are responsible for checking the accuracy of the products, service and work
specification which are raised from the user departments.
Data (2003) Africa stated that direct procurement in Africa is key in the achievement of the
organizations quality, quantity, right source, right place and time hence reduction of market risks
and losses associated with indirect, request for quotation and request for proposals forms of
purchasing.
Michael (1998) South Africa in his business journal book of principles of purchasing and supply
management highlighted that direct purchasing is key in promotion of economic growth in
developing African countries that are still behind in economic activities, since it does not use a
lot of legal procedures. Darmas (2008) Libya in his explanation of procurement methods
complements that direct purchasing is the reason for the development and growth of Libya in

8
economic activities and added that African business communities should adopt the similar policy
in aid of their economic increase performance.
Nderitu (2001) in a business summit held in nation center Nairobi in explanation he said that
Kenya likewise had been in top in terms of business performance due to minimal paperwork
involved in its business activities. Public procurement and disposal act recommends the use of
direct purchasing when itself does not aim at fighting out other suppliers in the market. Direct
procurement in Kenya had been as well seconded for issues of state security since some
procurement are of classified nature. Public procurement in Kenya-TI Kenya by D Gichio cited
in his statement to provide oversight on public procurement to build capacity and advice
procuring entities on public procurement.
David Momanyi (1999) in his journal business stated that other than other methods of
procurement direct purchasing are the most suitable method, where there is only one supplier in
the market who offers the specifications of the organization in specific and so help in reducing
down time for drafting and inviting other suppliers to submit their bids due to incapability to
supply the organizations needs and specifications.
Articles analysis of the purchasing arrangements in Kenya ha the case of bcm health servers by
K Munge (2009) the study aimed at examining the purchasing practices of direct supplies also
provided micro-health insurance under a direct agent. Kenya national assembly volume 27
magazine. Kenya farmer’s association- direct purchase of cement from Mombasa cement
company for the purpose of price increment was that the order for direct shipment of cement
from other known cement companies.
2.2.2 Effects of Direct Purchasing
The impact of global purchasing and supplier integration on product. By B Fynes (2015) cited by
33 related articles 7th September 2015, several studies of global purchasing have analyzed the
effects on product delivery (2011) developed a model of risk and the negative effects of global
purchasing, but their model does not include the direct effects on the innovation, as in indirect
effect. They include the potential loss of intellectual property rights. June 2013 in international
journal of logistics the explanation on the impacts of the direct purchasing Is seen as helping in
competitive advantage of direct purchasing internationally.
H Samuel India (2003) explains in his business quotes of the year that strategic direct purchasing
also influences organizations performance directly, and furtherly, performance in addition to its
direct impact. Procurement of goods, works and services international organizations in donor by
G Carbonnier (2013) the direct effect of bilateral ODA, resulting from expenditure in terms of
salaries and fees as well as the procurement of requirements.
Dawaat (2007) in explanation complements that when organizations are considering global
sourcing then they weigh the impacts on its competitive advantage. ILO (2004) the International
Labor Organization (ILO) and its constituents, not being able to secure prices that at least cover
production cost also has direct effects on wages.

9
Geography, demography and economic growth in Africa- Jastor by De Bloom (1998) cited by
1782 related articles demographic and geographical variables that have a large and direct effects
on economic performance. By R Clas Naire (2018) southern Africa stated that due to the increase
in the spread of the supermarkets in southern Africa this could lead to increase in use of direct
purchasing since there has been rise in increase customer’s product and services demand much
higher than expected rate.
Chung’u ching 14th October (2018) claims that through direct procurement activities have
positioned the country’s economy in a refined position since it cuts the total expenditure
involved in the whole purchasing cycle. Has the Africa benefitted from foreign direct economics
tutor 2u. 16th November 2014 suffer poor working conditions and health risks as well as low pay
“thus poor FDI can erode human capital, FDI can also enable countries in sub-Sahara Africa to
overcome their savings gaps, many African economies suffer from low savings. Analysis of
colonialism and its impact in Africa-Tralak by S Ocheni (2012) cited by 52 related articles
transformation and technology of the European countries hence direct control of the African
economy and political, sub-Sahara Africa regional economic outlook- International Monetary
Fund by RE outlook cited by related articles implications of the Afcfta for African countries:
welfare, income distribution, fiscal revenue, direct and spillover effects (weighted by GDP in
purchasing power parity). Factors affecting consumers purchasing decision in Kenya’s motor
industry.
Factors affecting consumers purchasing decision in Kenya’s motor industry by TM Wambua
(2018) consumers purchase decisions in Kenya’s motor industry also reveal the use of digital
marketing and its effects of purchasing of the parts of other fixtures of the vehicles.
Wahu (2015) procurement performance contributes to the overall performance of an
organization through cost saving, improved quality and reduced lead times, which leads to
internal customer satisfaction- the sought to analyze the factors affecting the performance of the
procurement function in Kenyan public secondary schools.
(2016) E Kuloba effects of procurement procedures on service delivery Kisii University library
23rd November 2016. The study focused on effects of procurement in Kenya which had a lot of
weaknesses. Direct procurement is done when there is pressing need of goods, works and
services whereby in such cases of emergency, calamities and urgent obligation of requirements
by either public or private sectors engaged in procurement duties.
RT Kipkemoi (2017) he sought that many private organizations for incidence resolve in use of
direct procurement in acquisitions of their works, goods and services with the aim to reduce lead
time and save on cost of acquiring such specifications.
Problems and challenges of global sourcing
Diva portal organization by C Jiang (2010) cited by 13 related subjects international purchasing,
global sourcing, supplier selection, Chinese manufacturing enterprises background scholars tend.
1999 by Borsch of southern Arabia he stated that the key problem of direct procurement in the
international market is difference in time zone.

10
Fynes (2015) the impact of global purchasing supplier integration on product the study shows it
is quite challenging to integrate trading partners due to problem in communication and language
barrier resulted from poor channel of communication system.
Retail global: the biggest challenges to overcome while selling internationally 23 rd April 2015
cited by Dawaat. He claims that direct procurement in the international market has been in threat
of logistics management across the global world.
Challenges with direct procurement processes – LinkedIn 13th September 2018 challenges with
direct global procurement processes set up and facilitated a global supply network comprised of
the technological upsurge problems and other related problems of legal handling and methods of
settled payments of requirements.
Main challenges included poor product specification, inadequate quantification of needs, long
supplier lead times, poor quality assurance systems, inadequate number and mix of human
resources and inadequate funding mechanisms in Africa.
A Dzuke (2017) according to UNDP/IAPSO (2006) public procurement has a direct effect on
government process is a problem to the successful implementation of public procurement in
Africa.
In some African countries cited by Dawaat (2002) inability to access the right quality and
quantity at the right time from the right place and right source at the right price for the direct
benefit challenges in public procurement information,
Strategic contribution contracting practices to improve procurement of health commodities by L
Arny (2014) public sector procuring entities face unique challenges and direct purchase and
distribution e.g. inflation in currency value, price fluctuations and unpredictable change in
political environment among African countries.
By L Arny. Address the challenges of market opportunities within emerging market economies,
flexible contracts with manufacturers and a direct purchase and distribution approach by erecting
a long lasting market flexible terms and procedures in sought of receipts of specifications and
services procured in African countries.
Challenges of direct procurement operation in Kenya in public and private sectors by BJ Koria
(2017) the challenges include poor planning, corruption, low knowledge on laws and regulations
and adequate resources. The study concludes that despite the challenges procurement department
is facing, it will remain to be the most important entity in the organization which need to paid
much attention.
Problems affecting the operational procurement process a study of Kenyatta university by A
Dzuke (2017) according to UNDP/IAPSO (2006) public procurement has a direct effect on
government on procurement performance in the public sector in Kenya a case of rural
electrification.
Factors affecting performance of the procurement function in Kenyan public by KE Wahu
(2015) this is the legal framework that governs procurement practice in Kenya today and it has

11
great extent addressed the issues that arose from the critical department of procurement in
relation to public organizations direct requirements procurement.
Constraints to foreign direct investments inflows to Kenya by BA Ateng 10 th august (2017)
problems/challenges they listed as the main hindrance to FDI. Direct investment in Kenya by
various foreign potential investors, current challenges by Kipkemoi (2016) in the department of
public procurement includes poor planning, corruption, low knowledge on laws and regulations
and adequate resources in many parts of the nations.
2.2.3 Literature Review of Reasons for Direct Procurement
International purchasing offices literature review and research. The foreign supply market, with
implications for global purchasing the structure of the paper is as follows, Monczka and Trent
(1992) argue that literature review on IPO as a stage of global sourcing and on IPO international
purchasing is initially carried out by designate activities and roles.
Global purchasing- core by A Lieven quintensa (2006) keywords literature review, global
purchasing future research although several reasons for initiating or intensifying direct
procurement cost that is the negotiation prices mechanisms.
Procurement reforms in Africa, the style challenges and aims, implementation of procurement
reforms in Africa has been fraught with incompetence I conducting a systematic review of
literature, the authors based their arguments to incompetence of the officials.
The influencing factors of public procurement policy development, by YIEL GAYED (2013) to
review the relevant literature on public procurement policy. Many public goods and services
have a direct or indirect impact on the trading nations. (2018) by P Trembley northern institute
report literature on public procurement, could be understood by digesting procurement training
manual, many direct extracts from their analysis.
2.2.4 Literature Review on effects of direct purchasing
Factors influencing the use of direct procurement of UON repository by SO Okonji (2011) the
study reveal that various factors influence use of direct procurement of chapter two literature
review supplies branch has not been able to perform its role effectively.
Literature review and research issues in e-procurement, the literature has finally and mainly
focused in the direct effect of web-enabled procurement on competitive advantages- web-based
IT can significantly benefit firm’s procurement processes through its flexible IT platform
(Ronchietal) (2010) Ranganathan et al (2011) Yu et al (2015).
Sourcing from Africa, a systematic review and research agenda by K Kaupi (2018) The authors
investigate the specific features that characterize supply chain management in Africa by
conducting a systematic review of the literature on sourcing in and from Africa. Their aim is to
help scholars direct their future research efforts.
Factors influencing the use of direct procurement of UON repository by SO OKONJI (2011) the
study also revealed challenges facing the government ministries while using direct procurement

12
of CUI. The challenges were common across all ministries and they included lack of transport
services to enable ease collection of procured CUI from supplies branch.
2.2.5 Literature review on the challenges of direct purchasing
Challenges facing procurement professionalism in developing economies 11 th November 2019.
Findings suggested that limited recognition, increasing unethical behavior, poor supplier service
delivery, poor regulatory environment, varying supplier standards and poor cooperate
governance are the main challenges faced by the procurement profession in these countries.
Challenges affecting procurement processes in public organizations in Africa. By SS Avambi
(2016) the aim of this study was to analyze challenges affecting procurement processes for 2.4.3
Empirical Literature Review in Tanzania.
Analysis of procurement issues in international OPOS at VTS by K Ahsan (2018) sought
literature review by identifying the critical challenges to procurement which differ from those of
beneficiaries receive direct or indirect beneficiaries from the project (Ahsan and Gunawan 2010).
Challenges facing procurement operations in the public sector by BJ Koria (2017) through the
literature review the knowledge gap on challenges facing the procurement department in
autonomous was identified. It has been noted that Kenya power has procurement unit which in
one way or another does not perform well due to challenges posed by inadequate raised material
requirement notes.
2.3 CRITICAL LITERATURE REVIEW
Factors influencing the use of direct procurement of UON repository. By SO OKONJI (2011)
director procurement open competitive processes for example, inviting quotes, tenders or
proposals from more than one supplier will not be applicable for all the procurement public
entity in some instances, a public entity may procure directly from a supplier.
Director procurement- office of the Auditor-General New Zealand. (2007) public entity should
ensure that it has robust policies and procedures around the use of the procurement cards, the
public entity should be well aligned with the policies of the public procurement before
commencing any public procurement activities.
Circumstances that allow the use of direct operations PNUD Chile, where the value of the
procurement is below USD 5000…conditions allow for the fast and easy generation of at least
two quotes.
procurement method NCA section (103) of the act states that direct procurement may be used if
the intention is not to avoid competition in addition to the following underlying conditions, either
when (I) there is only one person who can supply the goods, works and services being procured
and (ii) there is no reasonable alternative or substitutes in the market to opt for that is (iii) there is
a fully realized urgent or emergency circumstances posted in the environment of procurement.
Methods of procurement- ROGG Kenya reporting on good governance. (e) direct procurement
for the acquisition of goods, works and services provided by public entity provided that the

13
acquisition price is fair and reasonable and compares well with known prices of goods, works
and services in the circumstances outlined above.
E-procurement implementation critical e-procurement implementation critical analysis of success
factors. Impacts on project outcome both indirect and direct supply chain (e) Dai and e-
procurement in public sector so as to reduce the chances of paperwork and other additional
auxiliary transport costs.
Effects of procurement procedures on service Kisii university library. By E Kuloba (2016) the
study focused on effects of procurement countrywide, with the public sector system accounting
for about critical and essential part in efficient supply and development of the public
procurement sector.
Problems affecting the operational procurement process a study of the A Dzuke (2017) problems
in the Zimbabwean public procurement sector that direct from public procurement has a direct
effect on government performance which is measured as the service delivery.
2.4 SUMMARY
According to other researchers the right procedure of purchasing should always be followed by
avoiding un-recommended and un-strategized method. Technology changes should be adopted
and if updating is required then this is the purchasing manager. Both in internal and external
auditing should be done regularly to enhance improved efficiency by avoiding issues of
corruption and fraud.
It is the role of the purchasing manager to ensure that issues arise during and after the process of
purchasing are dealt with in order to avoid chances for and reasons which could amount to low
productivity hence better performance for the organizations. Apart from shortcomings of
purchasing and supply management, writers have done commendable jobs in criticizing the
importance or viral factors for forming a well-established procurement unit in the organizations.
Successful organizations of the future are those which overcome the problems cited in the
provisions chapter. Organizations maintaining competitive edge by understanding elaborate link
between procurement unit and other functional units in organizations that is through installments
of logistic management system. It should be an ongoing cycle and highly standardized for
consistent higher production. Finally, the study was seeking to encourage the organization to
adopt efficient purchasing and supply management since it is the major function where the
profits of the organization is measured and hence goal measurement achievement.

14
 CHAPTER THREE
3.0 RESEARCH DESIGN METHODOLOGY
3.1 INTRODUCTION
This chapter discusses the methodology adopted in the study. The chapter explains the
methodology adopted and tools employed in the study. It will be presented in terms of research
design, target population, sampling design, data collection instruments and procedures, data
analysis criteria and its reliability and validity.
3.2 REAEARCH DESIGN
Descriptive research will be used to investigate and establish factors hindering the efficiency of
purchasing and supplies management in the organization. According to Best and Kahn (1996)
descriptive research seek to establish factors associated with certain occurrences. This method
will be preferred because it allows for an in-depth study of cash. It enables the researcher to get
comprehensive response from the respondents and also ensure that there will be thorough
interaction between researcher and the respondents.
3.3 TARGET POPULATION
The target population of the employees in Muhoroni sugar Company were the senior and junior
staff in each department. This group will be chosen so as to represent the major level of
employees and hence avoid business interruption. The senior staff consisted of all heads of
department whereas the junior staff consisted of clerks and secretaries. Among the population of
235 members, 60 members were sampled. Below is an illustration of summary of the population
of interest.
Table 3.1 Target population in the study

Population Population size Population %

Junior staff 40 66.7
Senior staff 20 33.3
Total 60 100

15
3.4 SAMPLING PROCEDURES
Sampling is a procedure used in sample units from the population. Representative sampling
method will be used in the research project. This was because it was not possible to study every
member or element in the whole population. The researcher chose stratified random sampling
technique to obtain the required representative samples as shown below:
Table 3.4 sampling design

Population Category size Sample size Percentage%

category
Junior staff 40 25 85
Senior staff 20 10 89
Total 60 35 175

3.5 DATA COLLECTION INSTRUMENTS AND PROCEDURES

Data was collected using questionnaires. Respondents were assured of anonymity and
confidentiality, the study employed use of structured and semi-structured questions, observation
and focussed group discussions. The secondary data was acquired from purchasing and supplies
department with assistance of the purchasing and supplies management inclusively.
3.5.1 Questionnaire
The self-administered questionnaire was designed on the study variables. These were framed
according to study objectives and addressed all issues that were needed for the purpose of giving
required information. The questionnaire had both structured and semi-structured questions.
These were pre-determined questions whereby respondents were served both closed and open
ended questions were used to ensure they give relevant answers. The questionnaire method was
preferred because it was familiar to majority of the people in the society. It also gave enough
time to answer the open ended questions, the space was provided for relevant explanation to be
provided by the respondents, thus giving them freedom to express their feelings. This method
was considered effective to the study in that it was economical in collection of data. The
presence of the researcher was not needed, questionnaire is self-administered. The researcher
phrased questions clearly to make clear dimensions along which response could be analysed.
Advantages of questionnaires
a) It is cost effective
b) It is time saving
c) The presence of the researcher is not required
d) Respondents have freedom to express their feelings
e) Framed in both closed and open ended questions
Disadvantages of questionnaires
a) Not applicable to the illiterate
b) High chances of irrelevant answers
c) Lack of confidentiality

16
3.5.2 Reliability and Validity
The questionnaire was taken to the research expert at the National Youth Service-Institute of
Business Studies established whether the instruments used were reliable and the objectives of the
study were valid. Validity and reliability of the research instruments showed that same method
can be applied elsewhere and similar answers are achieved.
3.6 DATA ANALYSIS
Before analysing the final data, it was summarised, edited, coded and entered in an excel
worksheet where the researcher used descriptive statistical analysis, to analyse data both
quantitatively and qualitatively. The results were presented by use of table and graphs to be
understood easily. Qualitative data was analysed by explaining to the respondent’s views about a
given problem and the views were interrelated and compared in order to generate an explanation
to the research problem which was under investigation. Qualitative data was analysed using non-
numerical methods of data obtained through discussions, reports and documentations.

17
 CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION
This chapter focuses on data presentation, analysis and interpretation. The main objective of the
analysis is to aid the research in conclusions and recommendations in the area under study.
4.2 RESPONSE RATE
The researcher sought to find out the background of the respondents, which was necessary to
facilitate better understanding of the organization. The information sought out included age, level
of education, work experience, and job designation of the respondents.
Table 4.1 Ages of the Respondents

Frequency Percentage
20-30 years 10 50
31-40 years 7 35
41-50 years 3 15
Total 20 100

Figure 2 Represents the Response of the Ages of the Respondents

70
Series 1
60

50

40
percentage

30

20

10

0
41-50 years 31-40 years 20-30 years
frequency

Source: Researcher (2020)

From the filled questionnaires, it was established that 50% of the respondents fall between 20-30
years. 35% of the respondents fall between 31 and 40 years and 15% fall between 41-50 years.
This shows that the organization employs young people who are conversant with current
technology and capability and can increase productivity.

18
The graph above shows that the highest percentage who are 50% of the respondents falls
between the ages 20 to 30 years, 35% falls under the age of 31-40 years while the rest of the
respondents who were 15% fall under the age of 41-50 years.
4.3 THE HIGHEST LEVEL OF EDUCATION
Table 4.3 Represents Level of Education of the Respondents

Level Frequency Percentage

Primary 0 0
Secondary 0 0
College 14 70
University 6 30
TOTAL 20 100

Source: Researcher (2020)

Most of the employee’s respondents which were 70% had attained college highest level of
education in accordance with the research findings. 30% of the respondents had attained
university education as their highest education level which means that they were significantly
able to contribute immensely to the performance of the organization because of their education
background. Those respondents who had attained their highest level of education is primary and
secondary education were not employed in the organization.

Series 2

70

60

50

40

30

20

10

0
primary secondary college university

Series 2

19
4.4 The experience of the respondents
Table 4.4 represents the responses on years of the work experience

Years of experience Frequency Percentage

1-2 5 25
3-5 8 40
6-10 6 5
11 and above 1 5

Source: Researcher (2020)

The researcher found out that majority of the respondents had an experience of 3-5 years
comprised of 40% of the respondents. The respondents who had an experience of 6-10 years in
the organization were 30%. This was a significant number which indicates that the organization
had experienced employees who can handle more technical issues arising. The respondents who
had an experience of 1-2 years were 25% and the respondents who had an experience of 11 years
and above was only one employee representing 5% of the total respondents.
Figure 3 represents the responses of the years of experience of employees

Series 2

40
35
30
percentage

25
20
15
10
5
0
1-2 years 3-5 years 6-10 years 11 and above
years of experience

Series 2

20
4.5 JOB DESIGNATION
Table 4.5 Represents the responses on job designation of the respondents

Designation Frequency Percentage %

Manager 2 10
Assistants 6 30
Subordinates 12 60
Total 20 100

Source: Researcher (2020)

The findings reveal that job designation in the organization showed 10% of the respondents were
managers, 30% were assistant managers and 60% were subordinate staff.

Figure 4 Represents the responses on the job designation of employees in the organization

Percentage%
70

60

50
percentage

40

30

20

10

0
manager asssistants subordinates
Axis Title

Series 2

21
4.6 QUANTITATIVE ANALYSIS
Is price an important factor?

The researcher found out that the findings that price is a factor which affect decision making on
the purchases to be made. Those who agreed that price was determining factor in purchasing and
supplies management efficiency were 65% and those who disagreed were 35% of the
respondents. This shows that the majority of the respondents believe that there was need to
determine the right price of the materials which reflects the right quality and value of the item.

Table 4.6 Represents responses and the importance of price to purchasing function

Response Frequency Percentage %

Agree 13 65
Disagree 7 35
Total 20 100

Figure 5 Represents the response on importance of the price to the purchasing function

Percentage

70
60
50
Axis Title

40
30
20
10
0
agree disagree
Response

Source: Researcher (2020)

The graph above shows the highest percentage of the respondents in the importance of knowing
the exact prices of the materials in the market by organization. It indicated that 65% of the

22
respondents agreed, 35% of the respondents believe it does not bring a significant effect to the
organization.

4.7 CRITERIA FOR SELECTING SUPPLIERS

The researcher sought out that organization employed the quotation and tender methods when
required to get the suppliers. The challenge was that they deal with capital equipment hence they
need to employ more in tendering process.

Table 4.7 Represents response on the criteria of selecting suppliers

Criteria Frequency Percentages %

Tenders 8 40
Quotations 12 60
Totals 20 100

Figure 6 Represents response and the criteria of selecting suppliers

70

60

50
PERCENTAGES

40

30

20

10

0
TENDERS QUOTATIONS
METHOD

Source: Researcher (2020)

The graph above indicates the highest percentage of the respondents who were 60% said they
used quotations in the selection of the qualified suppliers, 40% of the respondents indicated that
they used tenders.

23
The effects of the following factors on the purchasing function
The ability of the quality of the materials purchased and its effects on purchasing and supplies
management efficiency was found to be 80% of the respondents thought it affects at a very high
rate, 10% at a high rate and 10% at a low rate. This means that they need to know more on the
quantity ordered because it may be less or more which in turn may affect the organizations
operations.

Table 4.7 Shows percentage effect of material quality

Response Frequency Percentage %

Very high 16 80
High 2 10
Low 2 10
Very low 0 0
Total 20 100

24
Figure 7 Represents the responses on the effects of the quality on the purchasing function

80

70

60
PERCENTAGES

50

40

30

20

10

0
very high high low very low
RATE

Series 3

Source: Researcher (2020)

The graph above shows the quality of materials and its effects on the purchasing function with
very high percentage rate being 80%, 10% thought that it affects at a high rate while 10%
indicates that it affects at a low rate.

Table 4.8 Represents the effects of order quantity on purchasing and supplies function

Response Frequency Percentages

Very high 7 35
High 9 45
Low 3 15
Very low 1 5
Totals 20 100

Source: Researcher (2020)

25
The ability of the quantity of materials ordered will affect purchasing decisions was found to be
35% of the respondents thought it affects at a very high rate, 45% at a high rate, 15% at a low
rate and 5% at a very low rate, this means that they need to know and thought more on the
quantity ordered since it may be less or more hence affect the organizations operations.

45
40
35
30
PERCENTAGE

25
20
15
10
5
0
high very high low very low
RESPONSE

Series 1

Table 4.8 Represents the effects of the right source of the suppliers on the purchasing and
supplies function

Response Frequency Percentage

Very high 9 45
High 6 30
Low 5 25
Very low 0 0
Total 20 100

Source: Researcher (2020)

26
The effects of the source selection to the purchasing function in accordance to the researcher’s
conclusion is that, 45% of the respondents thought that it affects at a very high rate, 30% at a
high rate while 25% at a low rate.

45

40

35

30
PERCENTAGE

25

20

15

10

0
very high high low very low

RESPONSE

Series 2

4.9 QUALITATIVE ANALYSIS

The Importance of the Right Quality
Majority of the respondents were aware of the importance of the quality of the materials on the
purchasing decision. The researcher found out that the right quality of materials is achieved
through proper quality management system set in place and accountability by the entire
management system unit. Hence, improvement in the organization’s production and customer
satisfaction was also improved because materials met the specifications. The findings showed
that if the quality of materials ordered by the organization was in accordance with the
specifications then, it indicated that the purchasing and supplies departments were very efficient
in their management. It was significant to order the right quality because it fasten consistency in
the operations of the organizations. In making sure that the budgeted quality of the materials and
equipment were ordered hence reduces overstocking and prevent capital tie-up and obsolescence.

27
The respondents indicated that the challenges facing quality control was due to lack of adequate
quality management systems. The organization had not adopted international standards (ISO)
which enhances attainment of quality materials. The selection of the source supplies was a
challenge because it was quite difficult to find reliable suppliers who were committed to supply
the right materials to the organization consistently. A supplier who meets the organization’s
specifications might not be available and who have advanced technology is a challenge due to
ever-changing technology. Sometimes conflict of interests from employees can be a challenge to
the organization.

The researcher sought out that majority of the respondents were aware of challenges encountered
in determining the price of the materials. The major challenge was the negotiation for the price
of materials and equipment by the buyers and supplier had never been carried out fairly due to
poor planning and preparation. The skills and strategies for negotiation by the buyers on the price
were necessary to give her strength were not in the tips of the buyers. The respondents indicated
that the specification given to the suppliers were not accurate which communicate wrong
information to suppliers, hence supplied the wrong quantity of the materials and equipment. The
user department was not very aware of the required quantity over a given period of time due to
adverse challenges in demand in the market. Poor budgeting may also result in overstocking or
understocking which affect the performance of the organization negatively.

28
 CHAPTER FIVE
5.0 FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.1 INTRODUCTION
The cumulative data was analysed using quantitative analysis and was presented in form of
tables and graphs. Recommendations were made to the general public and especially to the
organization under auspices of Africa union in Kenya on how to improve on the management of
purchasing and supplies function, so that it can be competitive like other organizations around
the world.
Through this research, the researcher has established the causes of inefficiencies in purchasing
and supplies management function. It was recommended that the purchasing and supplies
function should adhere to the attainment of the right quality, right quantity, right price, right
source and right time and source of materials in order to be efficient.
5.2 SUMMARY OF THE FINDINGS
The researcher found that the majority of the respondents believe that the quality of the materials
had either positive or negative effects in the purchasing and supplies function in the accordance
to how it was managed. So if well managed in which the systems are established it affects
purchasing and supplies positively. If the right procedure of purchasing was allowed in
accordance with the public procurement and disposal act there was achievement of the right
quality and also in the adoption of international organization of standards improves quality. The
right quality materials enhance higher production and customer satisfaction.
Majority of the respondents believed that the order quality was a determining factor in efficient
management of purchasing and supplies function in the organization. Some of them indicated
that the quantity ordered had very low effects on purchasing and supplies function. This was
significantly a small number of the respondents. The conclusions indicated that the quantity
ordered was a major issue of the inefficiencies of the organization and it must be seriously
considered by the purchasing and supplies team, at its efficient management of the materials and
equipment by producing the clear specifications.
The respondents believed that the effects of the materials and equipment purchased by the
organization is affected by the pricing system in which It affects at a very high rate. So the
management efficiency of the purchasing and supplies function was determined by competitive
price of the materials to be purchased in comparison to other factors including quality. The
lowest price of the materials with consistent quality was the right price according to the
respondents’ response. Market research should be established in order to know the exact price of
the materials to avoid exploitation by the sellers.
The purchasing and supplies function was affected by the organization choice of suppliers.
The selection and evaluation of the suppliers determines the ability of the purchasing and
supplies function to undertake its daily functions efficiently. The choice of the best suppliers
who are committed in improvement of the lead time and consistency of quality was difficult and
needs effective management. The researcher found that majority of the respondents believe that
the quality of the materials had either a positive or negative effects on the purchasing and

29
supplies function in accordance to how it was managed. So if well managed in which the systems
are established it affects purchasing and supplies unit positively. If the right procedure of
purchasing was followed in accordance with ye public procurement and disposal act there was
achievement of the right quality and also in adoption of the international organization of
standards improves quality. The right quality materials enhance higher production and customer
satisfaction.
The researcher found out that 35% of the respondents believed that quantity was a determining
factor in efficient management of purchasing and supplies function in the organization, 5% of the
respondents argued that quality ordered had very low effect on purchasing and supplies function.
This a significantly small number of respondents.
The conclusion indicated that the quantity ordered was a major issue of inefficiencies of the
organization and it must be seriously considered by the purchasing and supplies function to its
efficient management of the materials and equipment by producing clear specifications.
The researcher found out that the price of the materials and equipment had an effect on the
purchasing and supplies function. 70% of the respondents believed that the effect of price of
materials and equipment was at a very high rate in comparison with their quality.
So the management efficiency of the purchasing and supplies function was determined by the
competitive price of materials to be purchased in comparison to other factors like quality. The
lowest price of the materials with consistent quality was the right price according to the
respondent’s response.
Market research should be conducted in order to know exact price of the materials so as to avoid
exploitation by the sellers.
The purchasing and supplies function was affected by the organizations choice of suppliers. The
selection and evaluation of suppliers determines the ability of purchasing and supplies function
to undertake their daily activities efficiently. The choice of the best suppliers who are committed
in improvement of the lead time and consistence of quality was difficult and needs effective
management.
5.3 CONCLUSIONS
Based on the study, the facts reveal that most of the respondents believed that quality, quantity,
price, source and time of the materials affects the efficiency management of the purchasing and
supplies function in the African union organizations. The right purchases result into higher
productivity of the organization. In addition, the findings showed that the challenges of
managing quality, quantity, price and source selection of the materials were believed by the
respondents that there was need to be very serious in the management of those factors, indeed it
needs professionals so as to increase effectiveness of purchasing and supplies function. The top
management in the purchasing and supplies department, should ensure that the deviation was
handled properly to enhance improvement of the function.
The findings finally concluded that effective management of the purchasing and supplies
function relies on their team accountability and commitment. As the organization engage in

30
efficient purchasing and supplies management there will be achievement of customer satisfaction
and higher productivity.
5.4 RECOMMENDATIONS
The purchasing and supplies team should be well trained on matters concerning international
standards (ISO) to improve on the quality. This should be adopted to enhance production of
materials with no defects. Also thorough inspection of incoming materials and equipment should
have been done critically. The organization must be in the understanding of the needs of the
customers through efficient management of the purchases in the organization to satisfy customer
needs and expectations. For this to be achieved, the purchasing department and its entire team
should enhance improvement in the efficient management of the materials and equipment to be
purchased. The whole staff should be aware that purchasing department is a profit determining
centre rather than clerical function. There was also need to avoid shortages by thoroughly
specifying the right quantity of materials and equipment required by the user department.
The recommendations on the order quantity purchased is that the purchasing officer concerned
with the raising of the purchase order should adhere to the specification from the user units, by
doing so there is no overstocking and understocking of the materials. The suppliers also should
be accountable on the wrong quantity delivered and make sure that they deliver the promises.
The organization should put in place transparent inspection officers to deal with quantity
delivered before storage and use.
The organization needs to focus on the right price by exercising thorough market research to
increase their capability of getting the right price of the materials and equipment. When the
organization has done that, there are high chances of doubling their profits and indeed retaining
their customers because some customers are price sensitive.

31
5.5 SUGGESTIONS FOR FUTURE RESEARCH
The researcher was then able to recommend the following topics for further study to assist
enhancing the efficiency of purchasing function.
 The quality control systems for effective material handling in an organization.
 Order quantity and its effects on materials purchased in stores operations.
 The methods to be used for proper allocation of right sources.
 The right time of materials purchased and how to manage them to improve the efficiency
of purchasing and supply function.
 How to establish the materials market right price?

32
 APPENDIX I
QUESTIONNAIERE FOR PURCHASING/PROCUREMENT PERSONEL
I am a student at NYS Institute of Business Studies pursuing a Diploma course in Purchasing and
Supplies Management. As part of requirement for the course, I am expected to undertake a
research project and the title of the project is: Materials purchasing and its impact on stores
operation in Organizations. Case of Ministry of Youth Affairs and Sports, Nairobi. I kindly
request you to assist me in the answering of the questionnaires, the information provided will be
used for academic purposes only and will be treated with confidence it deserves. Please tick the
right answer where necessary.
God bless you.
SECTION A
Backgroundj

 41 – 50 years

1. What is your highest level of education?

 Primary

 Secondary

 College

 University

Any other, specify

……………………………………………………………………………………………………
………………………………………………………………………………………
2. How many years have you worked in your organization?
 1 – 2 years

 3 – 5 years

 6 – 10 years

 11 and above

33
 3. What is your age designation in your organization?
 Manager

 Assistant Manager

 Subordinate

SECTION B
1. Give the importance of adopting the right quality

2. What are the effects of ordering the right quantity in the organization?

3. Is the price an important factor in purchasing of the material?

Agree

Disagree

4. In your opinion give reason why source selection is a very important factor to efficiency
of purchasing the right materials?
………………………………………………………………………………………………
…………………………………………………………………………….

5. State the extent to which the following factors affect the purchasing and supplies
function?
[ Tick in the boxes the right answer]

34
Factor Very high High Low Very low

 Quality of materials

 Order quantity

 Price of the materials

 Source location

6. Give the challenges you face when undertaking the following functions.

I. Quality control
………………………………………………………………………………………
…………

II. Source selection

………………………………………………………………………………………
……….

III. The price determination

………………………………………………………………………………….

IV. Getting the right order quantity

……………………………………………………………………….

35
 APPENDIX II
ESTIMATED BUDGET
The table below shows the estimated amount of money that the researcher used to carry out his
study.

ACTIVITY COST ( KSHS )

Stationery 1,000

Travelling 500

Computer printing and binding 1,500

Library 800

Lunch 500

Telephone 200

Miscellaneous 500

TOTALS 4000

36
 APENDIX III

ACTIVITY DURATION
NOV DEC JAN FEB MAR APR MAY JUN JUL
Presentation XXX
of proposal
to knec
Presentation XXX
of research
instruments
Data XXX
collection
Data analysis XXX

Report XXX
writing
Printing and XXX
binding
Project XXX
submission
to knec

REFERENCE

37
Dawat (2005) introduction to materials management; 6thEdition
Martin Dalop (2002) purchasing and supply chain management; 6th Edition
Garwin (1996) and Lyons purchasing and supply management; 5thEdition
Charles CJ II (2006) purchasing and supplies management simplified, 1stEdition Nairobi
Publishers
David South African Entrepreneur (2001) purchasing principles management, 8thEdition
Published South Africa
Michael (2005) principles of supplied chain management, Publishers; Thomson Corporation.
(4thedition)
Darmas (2008) Quality Tears, published New York, McGraw-Hill. (2ndEdition)
David Momanyi (1999) purchasing management. (7thEdition)
B Fynes (2015) Website of International Control for Standardization.
H. Samuel India (2003) purchasing principles management (1st Edition)
G. Carbonnier (2013) purchasing and supply management van schalk publishers: Pretoria (S.
Africa)
R Clas Naire and Chungu’ Ching (2018) storage and material purchasing 5thEdition

38