AN ASSESSMENT ON EFFECTIVE PROCUREMENT TECHNIQUES IN RETAIL

SUPERMARKETS

(A CASE STUDY OF EASTMATT SUPERMARKET)-TOM MBOYA STREET-

NAIROBI, KENYA

NAME OF STUDENT:

REGISTRATION NUMBER:

A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOOL OF BUSINESS IN

PARTIAL FULLFILLMENT FOR THE AWARD IN BACHELORS OF COMMERCE IN
PROCUREMENT OPTION AT GRETSA UNIVERSITY-THIKA
 DECLARATION FORM

This proposal is my original work and has not been presented for an award of any degree or any
other purpose in any university or institution.

Signature Registration number

Date Name: ………………………………….

Supervisor

This proposal has been submitted with my approval as the university supervisor

Signature…………………………………………... Date…………………………

Supervisor………………………………………………………

Department……………………………………………………………………

Gretsa University-Thika
 DEDICATION

I wish to dedicate this research proposal to the Almighty God for his love and protection during
my life in the university.
 TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION..............................................................................................5

1.1Background of the study.............................................................................................................5

1.2Statement of the problem............................................................................................................6

1.3Purpose of the study....................................................................................................................6

1.4Conceptual framework................................................................................................................7

1.5Research questions......................................................................................................................8

1.6Research objectives....................................................................................................................8

1.6.1General objective.....................................................................................................................8

1.6.2 Specific objectives..................................................................................................................8

1.7Significance of the study............................................................................................................9

1.8Delimitations of the research study............................................................................................9

1.9Limitations of the study..............................................................................................................9

1.10Assumptions of the research study.........................................................................................10

CHAPTER TWO: LITERATURE REVIEW................................................................................11

CHAPTER THREE: RESEARCH METHODOLOGY................................................................12

3.0 Introduction..............................................................................................................................12

3.1 Research Design......................................................................................................................12

3.2 Study Area...............................................................................................................................12

3.3 Target Population.....................................................................................................................12

Table 3.1 target population............................................................................................................13

Procurement administrators and procurement officers..................................................................13

Administrative officers that deal with administrative affairs of the organization.........................13

Sub-total index number..................................................................................................................13

3.4 Sampling size and techniques..................................................................................................13

3.5 Description of Data Collection Instruments............................................................................14

3.6 Data Validity and Reliability...................................................................................................15

3.7 Data Analysis...........................................................................................................................15

3.8 Logical and Ethical consideration...........................................................................................15

References......................................................................................................................................16
 CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or

works from an external source, often via a tendering or competitive bidding process.

Procurement generally involves making buying decisions under conditions of scarcity. If sound
data is available, it is good practice to make use of economic analysis methods such as cost-
benefit analysis or cost-utility analysis.

Procurement as an organizational process is intended to ensure that the buyer receives goods,
services, or works at the best possible price when aspects such as quality, quantity, time, and
location are compared Corporations and public bodies often define processes intended to
promote fair and open competition for their business while minimizing risks such as exposure to
fraud and collusion.

Almost all purchasing decisions include factors such as delivery and handling, marginal benefit,
and price fluctuations. Organization’s which have adopted a corporate social
responsibility perspective are also likely to require their purchasing activity to take wider societal
and ethical considerations into account.

An important distinction should be made between analyses without risk and those with risk.
Where risk is involved, either in the costs or the benefits, the concept of best value should be
employed.

Procurement activities are also often split into two distinct categories, direct and indirect spend.
Direct spend refers to the production-related procurement that encompasses all items that are part
of finished products, such as raw material, components and parts. Direct procurement, which is
the focus in supply chain management, directly affects the production process of manufacturing
firms. In contrast, indirect procurement concerns non-production-related acquisition: obtaining
"operating resources" which a company purchases to enable its operations. Indirect procurement
comprises a wide variety of goods and services, from standardized items like office supplies and
machine lubricants to complex and costly products and services like heavy equipment,
consulting services, and outsourcing services.
1.2 Statement of the problem

There is less research, empirical studies and comprehensive literature carried out so far
pertaining the effective procurement techniques in retail supermarkets in Kenya. There is the
need for knowledge to understand and cogitate on the effects and contributions of procurement
techniques and retail supermarkets in Kenya

In Nairobi according to Nemis (2018) there are over seven thousand and ninety supermarkets so
far that carry out various procurement activities. All of this procurement activities carried out are
either on a digital technological system aspect or on the traditional basis of carrying out various
procurement activities.

The research study seeks to investigate on the various procurement techniques that have so far
been carried out in the retail supermarkets in Kenya specifically in Nairobi commercial city in
Kenya.

1.3 Purpose of the study

The purpose of the research study is to carry out an assessment on effective procurement
techniques in retail supermarkets (a case study of Eastmatt Supermarket)-Tomboya street-
Nairobi, Kenya

1.4 Conceptual framework

INDEPENDENT VARIABLE DEPENDENT VARIABLE

OUTSOURCING

E-PROCUREMENT RETAIL SUPERMARKETS

TECHNOLOGY EASTMATT
SUPERMARKET
SELECTION AND
TENDERING
 1.5 Research questions

The research questions are as follows:

I. Are there any contributions of effective outsourcing on retail supermarkets in Eastmatt

supermarket Nairobi

II. Are there any contributions of effecting e-procurement systems on retail supermarkets in
Eastmatt Supermarket-Nairobi?

III. Are there any contributions of effective selection and tendering on retail supermarkets in
Eastmatt Supermarket- Nairobi?

1.6 Research objectives

1.6.1 General objective

The general objective of the research study is to carry out an assessment on effective
procurement techniques in retail supermarkets (a case study of Eastmatt supermarket)-Tom
mboya street- Nairobi, Kenya

1.6.2 Specific objectives

I. To investigate the contributions of effective outsourcing on retail supermarkets in Eastmatt

supermarket Nairobi.

II. To find out the contributions of effecting e-procurement systems on retail supermarkets in
Eastmatt Supermarket-Nairobi.
III. To assess the contributions of effective selection and tendering on retail supermarkets in
Eastmatt Supermarket- Nairobi.

1.7 Significance of the study

If by any chance the research study becomes published, the research study will be of great
significance since future international scholars and researchers may use or account as reference
the various empirical literature, theoretical literature, qualitative factual findings, and the
quantitative variances as literature that may be the backbone for future research findings.

The literature review may be a source of research gap review that may issue out a suggestion for
further studies upon the identification of a knowledge gap and a research gap by international
research scholars. This is important in the framework analysis of a statement of the problem.

1.8 Delimitations of the research study

The research study will only be limited on investigating on the topic of study stated in the
research study and it will assess on the various variables that are addressed in the conceptual
framework below:

1.9 Limitations of the study

The research study limitations that were anticipated were as follows:

1. Legislative managerial frameworks by the organization

The research study shall focus the challenge whereby the researcher frequently engaged in
visiting the case study organization frequently to obtain a permit authorization by the
management of the company. This may be challenging since there may be no mitigating factor to
this prospect and there may be a significant loss of time in undertaking this aspect.

2. The response rate of the research instruments (Questionnaires)

Historically, questionnaires are bound not to be answered by everybody in a fieldwork study.

This may occurre whereby not all the sampled respondents in a research study may be able to
answer the questionnaires and therefore it may resulted in the analysis of data of the
questionnaires that are only returned with successful answering by the respondents.

1.10 Assumptions of the research study

It was assumed that there was a contribution on the effective procurement techniques in retail
supermarkets
 CHAPTER TWO: LITERATURE REVIEW
2.1Introduction
This section contains the various literature materials present in the research study

2.1.1 Theoretical literature review

Theories are important in predicting, explaining and mastering phenomenon (behavior of
systems, events, activities of employees and time). Generalizations about observations are made
in theories (Matalanga, 2014). A theoretical framework explains the existence of the problem
under study. It mainly guides how the research will be conducted. It is important to the
researcher because it provides a general framework of the study. The current study was guided
by the game theory.

2.1.2 Game theory

Game theory is the formal study of decision-making where several players must make choices
that potentially affect the interests of the other players; it is official study of conflict and
cooperation (Xu, Pan & Ballot, 2013). Game theoretic concepts apply whenever the actions of
several agents are interdependent (Dai & Chen, 2012). These agents may be individuals, groups,
firms, or any combination of these. The concepts of game theory provide a language to formulate
structure, analyze, and understand strategic scenarios (Dai &Chen, 2012). According to (Xu, et
al., 2013) the game theory is divided into two main approaches: the non-cooperative and the
cooperative game theory.

The cooperative game theory can be applied to the case where players can achieve more benefit
by cooperating than staying alone (Xu, et al., 2013). The gain sharing issue was intensively
investigated in the cooperative game theory; therefore we adopted cooperative game theoretic
approaches in constructing the hypothesis on transport management and firm performance.
Today cooperation is becoming more and more crucial to improve the global performance of
logistics (Drechsel & Kimms, 2010). As the complement of traditional vertical cooperation, a
new cooperation model, the horizontal cooperation was proven efficient to reduce global cost
and improve service rate in logistics (Drechsel & Kimms, 2010).
In game theory, horizontal cooperation in logistics was proved efficient to reduce global cost and
improve the performance level (Cruijssen, Cools, &Dullaert, 2007; Pan, Ballot, Fontane
&Hakimi, 2012). However, despite these advantages, horizontal cooperation is not considerably
employed in logistics (Muir, 2010). One main obstacle in the implementation of horizontal
cooperation is the absence of an appropriate cooperation decision making model (Xu, etal.,
2013).

In regard to the present studies, the game theory is applicable in that, Kibos Sugar Company and
Allied Industries can decide to work hand in hand with their distributors. That is, they can
outsource transportation services from their own distributors. Besides, they can also decide to
empower one major distributor who can in most cases act as their point of sale so that at all
times, the market is serviced and goods are at the reach of the customers

products with small volume, low weight and high value, distribution cost simply occupies a very
small part of sale and is less regarded; for those big, heavy and low- valued products, distribution
occupies a very big part of sale and affects profits more, and therefore it is more regarded.

The demand for products can only be satisfied through the proper and cost-effective delivery of
goods and services of which the present study sought to establish, that is, if there was proper and
cost effective mode of delivery of goods and services to clients of Kibos Sugar Company. The
performance of any distribution company is strongly dependent on application of proper
information systems and applying proper distribution structure. Kibos sugar should not be an
exception to applying the latter. However, according to Stank and Keller (2001) in their study,
they did not find any relationship between information systems and distribution performance
which the present study sought to find out at Kibos sugar Company and Allied Industries. Kahia
(2014) on his study on factors affecting performance of distribution logistics in Bata shoe
Company in Kenya, he noted that availability of regional depots refers to whether a
manufacturing firm has set up depots in various regions so as to bring distribution near the
customers. However, the findings of Kahia (2014) were specifically in regard to the Bata shoe
company which may not necessarily apply to the present study which was based in a different
sugar manufacturing industry
 CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
This chapter discusses the research methodology that shall be used in the study. It provides a
general framework for this research. The chapter presents details of the research design, target
population, sample and sampling procedures, description of research instruments, validity and
reliability of instruments, data collection procedures, data analysis techniques and ethical
considerations while conducting the study.

3.1 Research Design

The research study shall be a case study research design. According to Orodho (2005) survey
research methodology is mainly used by the researchers in order to comprehensively gather
information, summarize information, present and interpret the research for the aim of the clear
clarification.

3.2 Study Area

The study will be carried out in Eastmart Supermarket in Nairobi

3.3 Target Population

The population study shall mainly be concerned with all the relevant procurement staff and
administrative individuals that are in the organization.

The study respondents must be individuals with a respective understanding on the various
information regarding the aspects and knowledge of procurement.
Table 3.1 target population
Number of respondents Respective role they play
5 Procurement administrators and procurement
officers

15 Administrative officers that deal with

administrative affairs of the organization

20 Sub-total index number

3.4 Sampling size and techniques.

Sample size (Sample length) refers to the number of individuals or observations protected in
observational research analysis. This wide variety is usually represented by employing n. the size
of a sample influences and the power of a research at to conclude. Sample size are important
since a researcher takes a small portion of the research study to infer meaningful respondents
who may issue verifiable and optimal findings

According to Karenge (2018) he defines sample size as the activity and the precision measure of
taking a smaller group of individuals, characters or outcomes from a larger complex and
complete measure of individuals, characters or outcomes. This aspect is important since it gives a
representation of the larger complex group of respondents, characters and outcomes.

Sample size is professionally competent and acceptable in the field of analysis research, since it
helps in working with smaller measures of representation and thereby excluding the activity of
working on with larger complete measures.
 Figure 3.1 shows a diagram of the meaning of a sample size.
A sample is a smaller group or sub-group obtained from the accessible population (Mugenda and
Mugenda, 2006). This subgroup will be carefully selected so as to be representative of the whole
population with the relevant characteristics. Each member or case in the sample is referred to as
a subject, respondent or interviewees.

According to Mugenda & Mugenda (2006) she asserts that 30% of the total targeted population
is considered adequate for the significant aspect of sampling in the research study. Therefore the
sample size that shall be settled shall be 30% of the total target population.
Total target population Sample size accrued(30% of the total target
population)
20 6

3.5 Description of Data Collection Instruments

The main data collection instruments that were used in the study include questionnaires. The
questionnaires had both close ended questions and some open ended questions that would give
respondent an opportunity. There comments were captured in close ended questions. They were
used for the purpose of collecting primary quantitative data.
3.6 Data Validity and Reliability
It was made sure that the validity and reliability of the questionnaire used in the research work
were good. Analyzed and summarized frequency tables, pie charts and figures were used to look
at the questionnaire items in relation to its ability to achieve the stated objectives of the research,
level of coverage, comprehensibility, logicality and suitability for prospective respondents.

3.7 Data Analysis

Both quantitative and qualitative approaches were used for data analysis. Quantitative data from
the questionnaire were coded and entered into the computer for computation of descriptive
statistics. The Statistical Package for Social Sciences (SPSS version 22) was used to run statistics
such as frequency and percentages so as to present the quantitative data in form of tables and
graphs based on the major research questions. The qualitative data generated from open ended
questions were categorized in themes in accordance with research objectives and reported in
narrative form along with quantitative presentation.

3.8 Logical and Ethical consideration

Logical and ethical considerations were highly regarded in the sense that proper authorization
and permission was soughed from the relevant authority.
 References
Ducoffe, R.H. (1996), Advertising value and advertising on the web. Journal of

Advertising Research, 36: 21-35.

Edwards, J., (2005), Pharma formulates plans to move marketing from TV.

Brandweek, 46: 5.

Faber, R.J., Lee, M. and Nan, X., (2004), Advertising and the consumer information

Environment online. American Behavioral Scientist, 48: 447-466.

Goldsmith, R.E. and Lafferty, B.A., (2002), Consumer response to Web site and their

Influence on advertising effectiveness. Journal of Internet Research: Electronic

Networking Applications and Policy, 12: 318-328.

Gong, W. and Maddox, L.M., (2003), Measuring web advertising effectiveness,

Journal of Advertising Research, 43: 34-49.39

Kent W., Ian, F., (2010), The Essential Guide to New Media &

Digital Marketing

Ko, H., Jung, J., Kim, J.Y. and Shim, S.W.,( 2004). Cross-cultural differences in

Perceived risk of online shopping.

Journal of Interactive Advertising.

Kotler, P., (2004), Marketing management, 11th International edition– Prentice-Hall,

pp 706.

Korgaonkar, P. and Wolin, L.D., (2002), Web usage, advertising, and shopping:

Relationship patterns. Internet Research: Electronic Networking Applications

 and Policy, 12: 191-204.

Faber, R.J., Lee, M. and Nan, X., (2004), Advertising and the consumer information

Environment online. American Behavioral Scientist, 48: 447-466.

Goldsmith, R.E. and Lafferty, B.A., (2002), Consumer response to Web site and their

Influence on advertising effectiveness. Journal of Internet Research: Electronic

Networking Applications and Policy, 12: 318-328.

 APPENDIX ONE

RESEARCH QUESTIONNAIRE

RESEARCH QUESTIONNAIRE

Instructions
Follow the given instructions as indicated below:
a) Kindly do note indicate your name on the research questionnaire
b) Answer the questions by putting a tick on the right answer
SECTION ONE: BACKGROUND BIO-INFORMATION
Information on literacy level
A. What is your most recent top academic achievement?
a. Doctorate of Philosophy (Ph.D.) ( )

b. Master’s degree ( )

c. Post graduate diploma ( )

d. Bachelor’s degree ( )

e. Diploma ( )

f. Certificate ( )

g. K.C.S.E certificate ( )
B. Kindly give us name of the learning institution under which you were able to
achieve the above merit of academic qualification.
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Information on gender composition
C. Kindly tick your preference gender category
Male ( )
Female ( )

Information on age bracket composition

D. Kindly tick your preference age bracket category
20-25 years ( )
26-30 years ( )
31-35 years ( )
36-40 years ( )
40-45 years ( )
46-50 years ( )
SECTION B: RESEARCH QUESTIONS

a. Are there any contributions of effective outsourcing on retail supermarkets in Esstmart

supermarket Nairobi

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b. Are there any contributions of effecting e-procurement systems on retail supermarkets in

Esstmart Supermarket-Nairobi?

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c. Are there any contributions of effective selection and tendering on retail supermarkets in
Esstmart Supermarket- Nairobi?

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