Abstract: The central theme of the CPFR guidelines was to align processes and standardize technologies to share forecast and other planning information securely, simultaneously, globally, and in real-time. In order to increase the accuracy of forecasts and to improve the ability of retailers to quickly respond to changes in market conditions, the Voluntary Inter-Industry Commerce Standards association (VICS) first proposed the collaborative, planning, forecasting and replenishment (CPFR) model in 1998.The purpose of this study was to investigate the role of collaborative planning, forecasting and replenishment adoption on procurement performance in retail sector in Kenya, a case of Nakumatt holdings. This study evaluated how ICT integration, Organizational policy, Cost reduction and Lead time in CPFR affect procurement performance in retail sector. The theoretical review constituted of Diffusion of Innovation Theory, Institutional Theory, Transaction Cost Theory and Theory of Constraints. This study adopted a descriptive research design. The target population was 450 consisting of a sample frame of directors, head of departments, procurement and supply chain officers, logistics officers and ICT officers. Using Masuria formula, a sample size for the study was determined. The study used stratified sampling where proportionate sampling was used to determine the specific sample size of each stratum. Self-administered questionnaires were used to obtain primary data while journals, books and e-resources were used to obtain secondary data. Data analysis was done using SPSS V21. Descriptive data was presented using frequency distribution tables and percentages. The study established that there was a very strong positive correlation (r = 0.79, p< 0.05) between ICT adoption and procurement performance at Nakumatt holdings, very strong positive correlation (r = 0.61, P<0.05 ) between organizational policies and procurement performance at Nakumatt holdings, a very strong positive correlation (r = 0.73, P<0.05 ) between top management support on CPFR and procurement performance at Nakumatt holdings and a strong positive relationship (r= 0.68, p<0.05) between CPFR in procurement and reduced lead time. It was also revealed that, 43.3% of the respondents strongly agreed that CPFR adoption increased customer satisfaction and that 31.7% strongly agreed that CPFR adoption increased profit.
Keywords: Forecasting, Replenishement and Performance.
Title: ROLE OF COLLABORATIVE PLANNING FORECASTING AND REPLENISHMENT ADOPTION ON PROCUREMENT PERFORMANCE IN RETAIL SECTOR IN KENYA: A CASE STUDY OF NAKUMATT HOLDINGS
Author: JACKSON MUNYASYA MUNYOKI, DR. NOOR ISMAIL
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
