Category management and procurement performance among commercial banks in Kenya

Abstract

A study was conducted to establish the relationship between category management and procurement performance among commercial banks in Kenya. The study had three objectives: to determine category management practices implemented by commercial banks in Kenya, to establish the relationship between category management and procurement performance among commercial banks in Kenya and to establish the challenges faced in the implementation of category management philosophy among commercial banks in Kenya. The research design involved a cross sectional survey of all commercial banks in Kenya. Data was collected using a questionnaire that was administered through drop and pick later method. Descriptive statistics were used to analyze objective one and objective three whereas correlation and regression analysis was used to analyze the relationship between category management and procurement performance. The findings were presented in tables and charts. The study established that most of the commercial banks in Kenya have implemented category management for more than five years. It was also evident that there was a very significant relationship between category management and procurement performance represented by an R2 value of 0.764 which translates to 76.4% variance explained by the independent variables namely; spend analysis, aggregation and standardization, market analysis, supplier relationship management and category strategy. The findings of this study and application thereof are limited commercial banks in Kenya and can only be used for comparative purposes and not any direct application in another industry or country. Further research on the same study can be done in other sectors and industries to establish whether category management is able to yield the same effect on procurement performance of commercial banks. It has also been recommended that all banks and other organizations be advised to embrace category management to enable them reap the benefits of the philosophy.