Abstract:
Electronic Procurement is the use of electronic computer systems to manage the entire procurement process Francois (2012). While this system can deliver significant cost savings to business, a number of innovative companies and marketplaces are now looking at other appropriate areas of their business to drive forward their business performance throughout the value chain - both supply and demand. The objective of the study was to assess the impact of e-procurement on strategic sourcing in the banking sector at KCB bank Narok branch. The interviewees comprised of the bank employees working at the procurement department both at the central procurement department and in other bank units. Questionnaires and interview guide was used as the instrument for collecting data since both primary and secondary data was collected. Data was analyzed using qualitative and quantitative techniques. Qualitative data was analyzed using content analysis. Linear regression model was used. Conclusions are that the entire four variables that were identified for analysis namely; cost, legal infrastructure, security and supplier enablement were found to be key impediments to the implementation of procurement. Recommendations are; As much as resources are always limiting, KCB bank Narok branch should look at e-procurement as a critical investment and set aside adequate financial resources in their budgeting process. Furthermore only the initial investment in procurement of the necessary hardware, software and training of require personnel is resource intensive while the subsequent maintenance and operation cost are substantially low in comparison to the streams of benefits that will accrue from such investments.
