Role of Supply Base Rationalization Techniques on Procurement Performance in Public Sector: A Case of Lake Basin Development Authority, Kenya.

Abstract

Supply base rationalization is concerned with determining a strategy that will identify the optimal number of suppliers required to fulfill the requirements to supply all purchase category. The general objective of this study was to assess the effect of supply base rationalization techniques on procurement performance at Lake Basin Development Authority. The study used descriptive and correlation research design and targeted a population of 150 employees attached to procurement, administration and finance departments thereafter 50 were sampled for the study. Data was collected using questionnaires having both open and closed-ended questions. The data was analyzed using SPSS. The findings revealed that competency staircase and triangle approach had a moderate positive relationship with procurement performance (r=0.357) and (r=0.312) respectively. The findings led to the conclusion that procurement performance at Lake Basin Development Authority was measured with regard to the role of supply base techniques. Based on the findings, the study recommended that individual firms should adoption supply base rationalization techniques to effectively manage their supply base and promoted procurement performance in the Authority.