Effect Of Electronic-Purchasing on Organization Performance In Fast Moving Consumer Goods Companies In Nairobi, Kenya. A Case of Selected Firms

Abstract

It is becoming increasingly necessary for organizations to provide cost-effective solutions to satisfy the customer needs using innovative methods. It is against this backdrop that this study sought to establish the effect of electronic purchasing on selected Fast Moving Consumer Goods organizations performance within Nairobi Kenya. The objectives of the study were objectives to; identify the electronic purchasing application deployed to manage the procurement to pay process, establish the level of organization performance, investigate the utilization level of the electronic purchasing application functions and find out the effects of electronic purchasing on selected FMCG organization performance. The study used a descriptive research design and sampled a total of 96 respondents. Data was collected using the questionnaire and the analysis of data was done by SPSS (Version 21) software. The study found out that the electronic purchasing applications currently employed by selected FMCG organisations included SAP ERP 61.44%, SAP ERP & Ariba E- sourcing together 28.9% and other Enterprise Resource Planning systems 9.6% as noted by the respondents respectively. There was a high level of utilization of electronic purchasing application in the select organizations. The study also found out that there was a 3.6% relationship between utilization level of electronic purchasing application and organisational performance. From these findings, the study concluded that there was an effect of electronic purchasing application on organisational performance. The study recommended that more emphasis be placed on the implementation of electronic purchasing systems in the organization.