Effect of E-Procurement on Lead Time in the Public Health Sector in Kenya: A Case of Public Health Facilities in Nairobi County

Abstract

In Kenya, statistics indicate that more than 50% of procurement processes in health institutions in Kenya are still being carried out manually. Despite all of the efficiencies that can be realized through public e-procurement, most public health facilities have not transitioned to full-fletch operationalization of e-procurement processes for reduction in lead time. Despite well outlined medical supplies policies, there are cases where health facilities run short of drugs and it takes long durations before replenishment is done. The main objective of the study was to determine the effect of e-procurement practices on lead time in public health facilities in Kenya by taking the case of public health facilities in Nairobi County. The specific objectives of the study were: to determine the effect of e-catalogue, ERP integration, e-invoicing and e-sourcing on lead time. This study adopted a descriptive survey research design. The target population was 97 public health facilities in Nairobi County whereas study respondents were 97 administrative staff of these health facilities. The study collected data using structured questionnaires. Descriptive as well as inferential statistics were used to establish the influence of e-procurement on lead time. Data analysis was carried out using statistical package for social sciences (SPSS) version 21. The results of the study were presented in form of tables and charts. The findings of the study revealed that the four e-procurement practices had a positive significant influence on lead time among public health facilities in Nairobi County.  The study concluded that an improvement in indicators of e-procurement processes will positively and significantly influence lead time in the public health sector. The study recommends that in order for the public health facilities to improve lead time during procurement, there is need to focus on key electronic catalogue indicators such as online placement of purchase orders, online creation of purchasing requisition, approval of purchasing requisition online, online comparison of products before bidding and using online tender requisitions in procurement process.

Keywords: E-Catalogue, ERP Integration, E-Invoicing, E-Sourcing, Lead Time