EFFECT OF SUPPLIER EVALUATION ON PERFORMANCE OF THE PROCUREMENT FUNCTION OF PRIVATE HEALTH INSTITUTIONS IN KISUMU COUNTY, KENYA

This study sought to determine the effect of supplier evaluation on performance of procurement function of the private health institutions in Kisumu County. This was cross sectional survey study where data was collected in private health institutions in Kisumu County at a single point in time. Population of the study was 75 procurement staff of the 25 private health institutions in Kisumu County while the sample size was all the 75 staff working in the procurement departments. Data was collected through structured questionnaires that was administered through drop and pick technique. The collected data was analyzed and mean and standard deviations used to describe the variables in the study while regression analysis was computed to determine the effect of supplier evaluation on performance of procurement function of the private health institutions in Kisumu County. Both descriptive and inferential statistics indicated that all the study’s conceptualized variables (supplier quality commitment, supplier financial stability and supplier competence) significantly influenced performance of procurement function of private health institutions in Kisumu County (dependent variable). The study concluded that one; supplier quality commitment is a mandatory requirement for boosting the procurement function; two, supplier financial stability boost procurement performance function by minimizing costs associated with re-advertisements of tenders due to prequalified supplier’s financial inability; and three, supplier competence is a significant determinant of procurement performance, since overall supplier capability in terms of product/service quality responsiveness guarantees customer satisfaction. The study recommended that one, the procurement office should consider supplier’s quality commitment to ensure that procured goods/services meet customer needs and standards, two, the procurement office should evaluate suppliers’ financial stability in determining suppliers’ financial capability of supplying procured goods/services; and three, to boost the procurement performance function, procurement officers should carefully assess supplier’s competence in supplying quality goods/services before being awarded bids. Key Words: Supplier Quality Commitment, Supplier Financial Stability, Supplier Competence, Procurement CITATION: Ouko, S., & Juma, D. (2020). Effect of supplier evaluation on performance of the procurement function of private health institutions in Kisumu County, Kenya. T he Strategic Journal of Business & Change Management , 7(2), 40 – 57.