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An effective supplier assessment is necessary and crucial for the success of public
organizations in today's competitive environment to improve the efficient and
reliable supply of service delivery to people, such as education, health, security, and
infrastructure, and ensure the best value for money for each shilling of taxi payer
money spent. Choosing the right suppliers in public organizations is a challenging
task as the wrong supplier leads to a delay in delivery, an unsatisfactory output.
Theoretical, the study involved three main theories, which guide the entire study;
those theories include partner selection theory, network theory and quality
management theory. The conceptual framework was developed to reflect the specific
objectives mentioned in chapter one. Both dependent and independent variables are
cleared stipulated to show the relationship. Using a survey method, primary data was
collected using a questionnaire instrument. Data was analyzed using Statistical
Package for Social Science (SPSS) version 25 for quantitative analysis. Descriptive
statistics, reliability analysis, factor analysis, and regression analysis were used to
analyze and determine the keys factors and association in relation to dependent
variable.
The regression results show that there are significant and positive effects of supplier
evaluation on procurement function performance. The supplier capacity (β=.196,
t=1.735, p=.089), supplier financial capacity (β=.512, t=3.606, p=.001), and supplier
quality management (β=.402, t=3.554, p=.001) were all found significant and positive
effects on procurement function performance. The study recommended that
organization should focus on various dimension of supplier capacity like production,
delivery and commitment during evaluation process. In addition, the organization
should evaluate the supplier cash flow and cost. On quality aspect, the organizations
need to focus on quality assurance and supplier relationship in assessing effective
supplier. |
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