Electronic Procurement Practices and Business Efficiency among Petrol Stations in Nyanza Region, Kenya

Abstract

The Oil Sector over the centuries has remained a predominant player in the world’s economy. This sector is known for its great contribution to many nations. National Oil states that consumption of Oil and petroleum products is projected to grow from 4.5 million Metric Tonnes to 12 million Metric Tonnes by 2030 and yet currently petroleum products procured face challenges. This research looks into the influence of electronic procurement practices on business efficiency in Petrol Stations in Nyanza region, Kenya. Recent detections have shown a low efficiency in the procurement process in Petrol Stations in Nyanza region. The study conspicuously looked at the influence of electronic sourcing on business efficiency in Petrol Stations in Nyanza region, Kenya; influence of electronic supplier selection on business efficiency in Petrol Stations in Nyanza region, Kenya; influence of electronic ordering on procurement efficiency in Petrol Stations in Nyanza region, Kenya and to establish the influence of electronic payment on business efficiency in Petrol Stations in Nyanza region, Kenya. This study employed descriptive study design, target population of 134 and a sample of 100 employees of petrol stations in Nyanza region, Kenya. The study used closed ended Likert scale questionnaires in data collection. Data was analysed using both descriptive and inferential statistical where descriptive statistics involved frequencies and percentage. inferential statistics based on Pearson correlation and simple linear regression. SPSS software version 23 was useful in the analysis. The findings were that based on the first intent, the study found out that electronic sourcing had a significant influence on business efficiency among Petrol Stations (t statistic=13.003, p-value=0.000< 0.05). In regard to the second intent, the study findings indicated that electronic supplier selection had a significant influence on business efficiency among Petrol Stations (t-statistic=10.638, p-value=0.000< 0.05). Based on the third intent, the study found out that electronic ordering had a significant influence on business efficiency among Petrol Stations (t-statistic=6.720, p value=0.000< 0.05). Finally, the fourth objective study findings confirmed that electronic payment had a significant influence on business efficiency among Petrol Stations (t-statistic=10.209, p-value=0.000< 0.05). The study recommends that electronic sourcing should be prioritized since it enhances business efficiency. Online requisition sourcing should be practiced to make operations effective. Petrol stations should search for suppliers online based on capabilities so as to improve efficiency within the firm. This would lead to efficient supplier selection practices within Petrol stations. Petrol Stations should plan and schedule orders, placing orders, order requisitions and tracking orders so as to ease time taken to place orders among Petrol stations. Finally, the study recommends that Petrol stations should adopt electronic payment practice to decongest queues on physical payment. Furthermore, electronic payment eases audit and minimises cases of corruption.