DETERMINANTS OF THE PURCHASING FUNCTION IN THE MOTOR INDUSTRY: A CASE STUDY OF SIMBA CORPORATION LIMITED MOTOR DIVISION

Abstract

The study aimed at finding out the determinants of the purchasing function in the motor industry with special reference to Simba Corporation Limited in Nairobi, Kenya. The study dealt with four objectives which determine the effects of purchasing regulations on the purchasing function in the motor industry, to investigate the effects of information technology on the purchasing function in the motor industry, to examine how the purchasing ethics affects the purchasing function in the motor industry and lastly to determine how supplier management affects the purchasing function in the motor industry. The study employed a descriptive research approach because its goal is to identify the variables linked to certain events, results, circumstances, or behavioral patterns. The top-level management, middle level management, and supportive staff constituted the study's target group. A stratified random sample strategy was employed by the researcher. Tables, charts, and graphs were used to display the data after it had been analyzed using both qualitative and quantitative methods. The research found out that 77% of the respondents in Simba Corporation Limited embraced purchasing regulations as a means to better management of purchasing activities in the motor industry. 87% of those surveyed said that technology for information had improved communication among employees and is a means of reaching the set goals of the firm in the purchasing function. 87% of the respondents were of the view that purchasing ethics has had a great impact on the improvement of performance in the purchasing function in the motor industry. 73% of the respondents greatly believed that supplier management improves good service delivery to customers since the company is able to purchase their goods from reliable suppliers. The study recommended that purchasing regulations are vital in any organization that wants to ensure an improved management of the purchasing function, the use of IT in carrying out of purchasing activities must be embraced. Employees in the purchasing function must be encouraged to follow the purchasing code of conduct when carrying out purchasing activities. Supplier relationships must be well maintained to ensure the motor industry ability to purchase their products with ease.