Learning Outcome 1: Understand and analyse the added value that can be achieved through procurement and supply chain management.

The document discusses business needs in procurement and supply from the perspective of a business seeking inputs. It covers topics like the development of procurement functions, different types of purchases, capital procurements, and linking procurement objectives to corporate objectives.

This document discusses key concepts in procurement and contracting including approaches to tendering, effective specifications, supplier performance measurement, and elements that make a contract legally binding. It provides examples of performance indicators and terms that are commonly included in procurement contracts such as delivery schedules, health and safety commitments, and non-disclosure agreements. Risks of oral contracts and factors that determine whether a statement becomes a contractual term are also examined.

general objective of the study was to establish the factors affecting e-procurement in tea processing factories and it was guided by the following objectives; to establish the extent to which system security affects e-procurement implementation, to find out the extent to which cost affects e-procurement implementation, to determine the extent to which legal requirements affects e-procurement implementation in Tea Processing Factories In Nyamira County. This study employed a case study research design to assess e-procurement implementation in Tea Processing Factories in Nyamira County. This study targeted 50 individuals from Tea Processing Factories in Nyamira County. The heads of procurement and stores department and employees among other departments which work with procurement function will be targeted. This study adopted a stratified sampling technique whereby the researcher will carry out a simple random selection of five respondents from the procurement departments and 5 from given sections in finance, marketing and production functions giving a sample size of 40. From the findings it was revealed that; Legal protection of confidential information and the ability to authenticate and enforce electronic contracts were clearly the most cited challenges. Lack of support from the existing legal infrastructure and means for protecting and safeguarding business interest legally while using electronic platform was also seen to be a key challenge. This is clearly corroborated by the fact that currently the ICT policy in existence has not fully created a supportive legal framework where related issues are addressed. The integration of suppliers into a seamless procurement platform as a key objective of any e-procurement system was also noted. Notably internet connectivity and system integration with those of suppliers were key impediments. Lack of trained personnel and necessary support hardware were still key impediments just as was in the case of cost consideration. I recommend that, Supplier enablement to be considered since it might be a component that requires both the firms and its suppliers to work together and create a system that is efficient and mutually integrated. It is Is recommendation as well that both the company should look at a means of working together as a team and build systems that will allow easier e-procurement functionality. More so each party must solicit the support of the other either by sharing related costs, IT platform and resources. Despite internet connectivity being currently a challenge it may not last due to the advent of the fiber optic cable spreading across the country.

Empirical studies have shown that there is considerable evidence that public procurement performance in the country is deficient, as evidenced by poor allocation of resources, inefficiency in the process, gross negligence, non-adherence to procedures, untimely deliveries, unqualified personnel and incompetence of public administrators in Kenyan corporations. This study sought to examine how institutional factors influence procurement performance in parastatals. The study examined the impact of structure, management style, systems and staff on public procurement performance. The study was anchored on the Higgins model and institutional theory. The study was based on a positivist research philosophy with a descriptive research design. The population for the study was the 33 commercial and manufacturing state corporations in Kenya. The unit of observation was 165 respondents drawn from the strategy managers, finance managers, IT managers, human resource managers and procurement managers of each of the institutions. The study used a census survey of all respondents. The study used a structured research questionnaire. The research data was collected using physical questionnaires and Google forms. The research data collected was analysed using quantitative approaches such as descriptive and inferential analysis. The analysed research data was presented using graphs and tables. The findings revealed that there was a response rate of 95% (n= 114) between April and June 2022.Most of the respondents were procurement managers (26%) and finance managers (23%) in the companies. The results indicate that there was a statistically significant weak and positive association between structure, leadership style, staff and procurement performance within the state corporations. The correlation also showed a statistically significant moderate and positive association between system and procurement performance within state corporations. The results of the regression showed an R2 = .531 which indicates that at least 53.1% of the changes in the dependent variable (procurement performance) are determined by staff, leadership style, system, structure. The study also concluded that structure, system and staff of state owned commercial and manufacturing enterprises have a significant and positive effect on public procurement performance. The study further revealed that leadership style has a positive but insignificant effect on public procurement performance. Therefore, the results of the study indicate that institutional factors are key determinants of public procurement performance. Accordingly, a major focus should be placed on internal issues based on the factors examined in this study. However, more explanation is needed to further identify the specific issues in each organisation and possible structural patterns of problems.

This study was conducted with an objective of identifying the effect of supply chain management on performance of an organization in the case of East African Bottling Share Company. Supply chain management has become a valuable way of securing competitive advantage by improving organizational performances since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of supply chain management practices which are strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and internal lean practices and tests the relationships between supply chain management practices and organizational performance. The researcher used descriptive and explanatory research design. The data for the study was collected from 97 employees of East African Bottling Share Company. The relationships proposed in the framework were tested by Pearson correlation and the causal relations were analyzed by ordinary least square regression method by using SPSS Software. From the result of the analysis it is concluded that there is a strong relationship between supply chain management practices and organizational performance. Supply chain management practices have shown a positive and significant effect on performance of organization, all except internal lean practices. Therefore, in order to achieve growth in organizational performance, it is frugal for the organization to give due emphasis to the constructs of supply chain management practices.

These notes outline the full course content for DBM3109 – Negotiation in Procurement offered at Mount Kenya University, School of Business and Economics. The document is a comprehensive study resource covering theory, techniques, and practical applications of negotiation within purchasing and supply management. It begins with the course purpose, learning outcomes, and assessment structure, then expands into detailed modules addressing the entire negotiation process — from preparation to execution. Key areas covered include: Negotiation concepts and dynamics — defining negotiation, understanding BATNA, positions, interests, and needs. Formulating objectives and strategies — setting goals, prioritizing issues (price, quality, service levels, contract terms), and developing negotiation plans. Five-phase negotiation framework — identifying requirements, determining when to negotiate, planning, conducting, and executing agreements. Negotiation planning — analyzing strengths and weaknesses, gathering data, recognizing counterpart needs, and developing tactics. Sources of power — informational, reward, coercive, legitimate, expert, and referent power. Concessions and tactics — principles of give-and-take, practical negotiation ploys, and ethical considerations. Win-win negotiation — fostering collaborative outcomes and maintaining long-term supplier relationships. International negotiation and e-procurement — the impact of globalization and technology on negotiation methods. Case studies — such as Mack Trucks and American Airlines, demonstrating real-world application of negotiation principles.