Information Technology and procurement process in Kenya

Abstract

The main objective of the study is to asses’ the impact of information technology on procurement process in Kenya. Organizations today continue to face business related problems like collection of timely reliable and accurate information, processing, storing, and retrieval for decision making and control of the organization. The application of information technologies to procurement processes will change the way work is performed, the number and skills of contracting personnel, and the procurement organization's structure. Procurement plays a major role in organizations, which can significantly influence a company’s success. As a core function it is, however, subjected to the mega trends of the market. Its day to day existence is very much defined by growing procurement volumes due to greater concentration of business on core competences, globalization of procurement markets, growing market dynamics as well as the ever shorter product lifecycle. For a procurement organization to operate both efficiently and effectively in such a complex environment useful structures need to be created and suitable instruments put to use. Information technology can have an important function in this regard. Used appropriately it can offer: smoother and faster process flow, efficient distribution of information, decentralization of tasks and decisions, increased transparency and better control. In addition, information technology helps not only to support internal processes, but also those involving business partners. The research design used descriptive survey method aimed at establishing the impact of information technology on procurement process in Kenya for companies listed in Nairobi Securities Exchange. The study used stratified random sampling technique to select a sample of 37 employees from a population of 124. Questionnaires were distributed and 30 were fully completed and returned. This formed 81% of the population and it was found to be sufficient for the study. The study concludes that, the ability to use technology to improve the contracting process depends in part upon co-operation between the organizations that maintain data and organizations that use the data. Procurement systems promise to bring organizations one step closer to a scenario of integrated, yet modularized systems, which are flexible enough to handle all the different kinds of purchasing routines an organization usually has in place.