Influence of Adopting Electronic Procurement Practices on Performance of Supply Chain Management for Hospitals in Kenya

Abstract

Technology has become an integral part of modern business, facilitating transactions and operations in many areas, including procurement. Businesses, clinics, and hospitals in Kenya have been quick to embrace E-Procurement strategies. In Kenyan hospitals, where e-procurement accounts for as much as 30% of operational expenses, this study seeks to evaluate the effect of this trend on supply chain management success. Companies that want to survive in today's cutthroat healthcare market must embrace e-procurement strategies if they want to keep up with the ever-changing industry. By facilitating more efficient inventory management, faster purchasing cycles, increased transparency, and higher quality services, e-procurement practices are essential for improving performance and competitiveness in the market. The health industry is facing severe competition and financing constraints, making it imperative that it reorganizes its service delivery system to adapt to the complicated business climate. The purpose of this empirical study is to investigate how hospitals in Kenya are using electronic tendering and electronic invoicing to improve their supply chain management. The study found that Kenyan hospital administrators have a highly positive perception of electronic procurement practices, with e-tendering scoring an average mean of 4.75, significantly enhancing SCM performance through efficiency and cost savings. The findings concluded that e-invoicing also positively impacts procurement processes, promoting transparency and operational effectiveness. The study further recommended that legislators integrate these electronic procurement practices into healthcare policies, provide financial assistance and training, and encourage hospitals to invest in robust systems and strategic partnerships to improve patient care and system efficiency.