E-Procurement Adoption and Supply Chain Performance in Homa Bay County Government: A Case Study.

Abstract

In the today’s technological world, it is almost obvious that electronic procurement systems play a vital role in the management of the supply chain. This paper examined how adoption and use of electronic procurement systems in Homa Bay County Government contribute to value creation, reduction of overhead costs incurred during procurement processes as well as its contribution to the performance of their supply chain network. Primary data were gathered using questionnaires from all the 14 procurement personnel in the County Government and a sample of 81 supplies from their supply base. Regression results indicated that adoption and use of electronic procurement systems greatly improves performance of the supply chain partners (R2 = .835, p < .05) while resulting into procurement cost reduction, increased effectiveness among other benefits. From the findings, the study recommends full adoption and use of electronic procurement systems by the devolved governments to improve on procurement and supply chain performance.