Influence of Supplier ICT Integration on Procurement Performance of Pharmaceutical Manufacturing Firms in Nairobi County
Author(s)
Ann Wanjiku Ndungu , Dr. Denis Chege ,
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Abstract
This paper assesses the influence of supplier ICT integration on the procurement performance of pharmaceutical manufacturing firms in Nairobi County, Kenya. The pharmaceutical manufacturing companies are among the integral part of the country’s economy. In addition to these companies being part of the large pillar of manufacturing sector, they as well support the country’s healthcare, another critical pillar of the country’s socio-economic prosperity. It is therefore prudent that the suppliers of these pharmaceutical manufacturing companies be managed so as to obtain quality drugs and reliable services. Despite supplier’s contribution to the success of pharmaceuticals, there is scant evidence on how they have been brought closer in the decision making to determine the collective success of the entire sector. Available evidence shows the integrating information technology would a be a great move towards enhancing management of the suppliers. The paper was anchored on the Technology Acceptance Model. Descriptive survey research design was adopted for the study. The target population of the study was all the employees in the procurement department of the 110 pharmaceutical manufacturing firms in Nairobi County. Target respondents were the procurement managers of the pharmaceutical manufacturing firms in Nairobi County. A census was used where all the 110 firms were surveyed. Data collection instrument was a structured questionnaire which was used to collect primary data. Analysis of the collected data was done with the help of Statistical Package for Social Sciences (SPSS) The findings revealed that supplier ICT integration through inventory control, information exchange and coordination of functions significantly influenced the procurement performance in the pharmaceutical manufacturing companies. It was concluded that procurement performance in most of the companies was affected by inadequate embrace of ICT in managing the suppliers, thus it is recommended that the procurement managers in these companies ought to embrace ICT integration as one of the aspects of effectively managing suppliers
Keywords
Supplier Management, Supplier ICT Integration, Procurement Performance, Pharmaceutical Manufacturing Firms
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