Effect Of Supplier Digitization On Organization Performance In The Public Sector In Kenya

Abstract

Supplier digitization is more than just a system for making purchases online. In today’s competitive market most organizations in the world are gradually transacting business using information technology. The aim of the study was to establish the effect of supplier digitization on organizational performance in Public Sector. The specific objectives of the study are to establish the effect of digital firm-supplier communication on organizational performance, to investigate the effect of digital order taking on organizational performance, to determine the effect of digital tendering on organizational performance and to establish the effect of digital contract management on organizational performance in Kenya Power which is a Public sector. The study adopted a descriptive approach in trying to establish the effect of supplier digitization on organizational performance in Kenya Power. A sample size of 30%which is162 respondents was selected from the target population of 10% which is 540 suppliers and supply chain officers. Data was collected from the respondents through a questionnaire. The collected data was analysed using Statistical Package for Social Sciences (SPSS) and presented in form of tables and figures while explanations will be given in prose. The study found that all independent variable of supplier digitization has effect on organizational performance in Kenya Power and hence play a key role in the supply chain of Kenya Power. The study recommends that for faster adoption of supplier digitization by suppliers and hence Kenya Power to have a smooth flow of processes, Kenya Power must ensure that their on-boarded suppliers and the ones that are on-boarding understanding benefits accrued from use of technology such as supplier digitization on procurement processes which incorporates digital tendering, digital order processing, contract management as well as digital firm -supplier communication which create efficiency and transaction effectiveness in the entire supply chain of the Organization. To the employees, the management must emphasise the importance of procure to pay perceptive through online process that enhances transparent processes.