ASSESSMENT OF SUPPLIER APPRAISAL INFLUENCE ON PERFORMANCE OF PROCUREMENT FUNCTION

Abstract

The rise of global sourcing has led organizations to seek effective ways of coordinating material flow and quality improvement particularly when appraising suppliers for non-standard products. Supplier appraisal is a business practice that measures, analyzes, and manages vendor performance in order to reduce costs, minimize risks and promote continuous improvement. The intention is to predict challenges and their main causes so that the unforeseen risks can be dealt with at the initial stages of purchasing. This study focuses on due diligence, communication and supplier commitment as key dimensions to give more insight into the study. Survey was used as the research design. Target population included respondents from service state corporations in Kenya. Stratified random sampling technique was used to attain the study sample size. For data collection, questionnaire was used. The ANOVA findings as explained by F(1, 156) = 138.317, P<0.05 (sig. =0.000) is an indication that Supplier Appraisal is a significant Predictor of performance of procurement function. The study concludes that firms which practice supplier appraisal will gain from improved quality, customer satisfaction, and reduction in acquisition costs.