INFLUENCE OF SUSTAINABLE PROCUREMENT PRACTICES ON PERFORMANCE OF PROCUREMENT IN FOOD AND BEVERAGES MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

Abstract

The study sought to establish the influence of sustainable procurement practices on the performance of procurement in food and beverages manufacturing firms in Nairobi County, Kenya. Four specific objectives guided this study: to establish to establish the influence of reverse logistics on the performance of procurement in food and beverages manufacturing firms in Nairobi County, to assess the influence of green specification on the performance of procurement in food and beverages manufacturing firms in Nairobi County, to evaluate the influence of green inventory management on the performance of procurement in food and beverages manufacturing firms in Nairobi County and to establish the effect of green tendering on the performance of procurement in food and beverages manufacturing firms in Nairobi County. The research design used for this study was descriptive cross-sectional design. 217 food and beverage manufacturing firms formed the source from which the respondents were sourced. The study employed Stratified random sampling technique. The study further used simple random sampling within the different strata. 108 food and beverage manufacturing firms which was 50% of the target population was sampled. A questionnaire was the primary data collection instrument. Inferential statistics as well as descriptive statistics were both used to analyse data. The research revealed that majority of the manufacturing firms practiced reverse logistics, green specification, green inventory management and green tendering to a great extent. In addition, the study revealed that the companies had been able to reduce costs after adoption of sustainable procurement practices and that sales revenue had increased since the adoption of sustainable procurement. The study recommended that the companies consider the full adoption of remanufacture and recycling reverse logistics practices as well as adoption of reuse reverse logistics practice. They should fully develop and adopt virtual warehousing with the aim of optimizing production, reducing costs and providing supply chain channels with customer service that is of high-quality. The study also recommended that the organizations consider incorporation of environmental criteria into the process of selecting suppliers at all stages. Key Words; Reverse Logistics, Green Specification, Green Inventory, Green Tendering, Performance of Procurement CITATION: Nyaga, I. W., & Achuora, J. O. (2020). Influence of sustainable procurement practices on performance of procurement in food and beverages manufacturing firms in Nairobi County, Kenya. T he Strategic Journal of Business & Change Management , 7(1), 927 – 941.