Procurement Risk Control and Supply Chain Performance among Manufacturing Firms in Nakuru County, Kenya

Abstract

Procurement risk control within the domain of sustainable procurement enhances risk reduction within the supply chain. It supports the overall organization’s strategy upon which it drives its operations on sustainable policies to gain social and economic benefits among manufacturing firms. However, manufacturing firms in Kenya are grappling with inadequate supply chain performance. Some of the challenges facing the sector include high costs, improper procurement planning, and slow adoption to process innovation in procurement. Therefore, this study assessed the effect of procurement risk control on supply chain performance of manufacturing firms. The study was anchored on transaction cost theory. The target population was the manufacturing firms operating in Nakuru County. Questionnaire was used in data collection and adopted descriptive and inferential data methods in analysis Findings were presented through tables. The descriptive research findings show that procurement risk control affect supply chain performance. Correlation analysis reveals significant relationship between procurement risk control and supply chain performance (r=0.617**, p=0.000). Regression results indicate that sustainable procurement practices explain 38.1% (R²=0.381) of the variation in supply chain performance. The study concludes that procurement risk control within sustainable procurement improve order fulfillment cycle time and workflow efficiency, thereby enhancing supply chain performance.