Lean procurement and supply chain performance at Safaricom limited

Abstract

In various organizations, lean has not only improved procedure, reduced inventory and enhanced ergonomics, but it has also allowed the company to fine-tune its chemistry and keep pace with changes in demand. However, despite its many benefits and continued implementation Safaricom Limited, the company has many times experienced challenges in relation to their service delivery. The study therefore sought to establish the lean procurement practices used in Safaricom Limited; to establish the relationship between lean procurement and supply chain performance at Safaricom Limited and to determine the challenges facing lean procurement in Safaricom Limited. This research study used a case study design. The target population of this study comprised of the staffs working in Safaricom headquarters. This research study used stratified random sampling to select 20% of the target population and the sample size was 37 team leaders. The study used both primary data and secondary data. Secondary data was obtained from the Safaricom annual reports and financial statements. Primary data was collected using questionnaires. The quantitative data in this research was analyzed by descriptive and inferential statistics using Statistical Package for Social Sciences (SPSS version 20). Descriptive statistics includes mean, frequency, standard deviation and percentages. Data was then presented in tables, charts and graphs. Content analysis was used in processing of qualitative data results were presented in prose form. Regression analysis was also used to establish the relationship between lean procurement and supply chain performance at Safaricom Limited. The study established that there is a positive significant relationship between lean procurement and supply chain performance. The study also established that Safaricom was lean procurement practices like involvement and empowerment of employees, supplier-firm relationship, pull system, total quality management, continuous improvement, e-procurement and 5S. The study recommends that telecommunication companies in Nairobi should ensure that they engage services of qualified individuals who have the required expertise in the implementation of lean procurement practices that can assist in making informed lean procurement. In addition, the government of Kenya should also formulate policies to improve e-procurement.