TECHNICAL UNIVERSITY OF MOMBASA
SCHOOL OF BUSINESS
DEPARTMENT OF MANAGEMENT SCIENCE
UNIVERSITY EXAMINATION FOR:
FIRST YEAR FIRST SEMESTER EXAMINATION FOR DEGREE OF MASTER OF
SCIENCE IN PROCUREMENT AND SUPPLIES MANAGEMENT
BPC 5105: STRATEGIC PROCUREMENT AND SUPPLY MANAGEMENT
END OF SEMESTER EXAMINATION
SERIES:DECEMBER,2016
TIME:3HOURS
DATE: Dec2016
Instructions to Candidates
You should have the following for this examination
-Answer Booklet, examination pass and student ID
This paper consists of Choose No questions. Attempt question ONE (Compulsory) and any other TWO
questions.
Answer question ONE Compulsory and any other THREE questions
Do not write on the question paper.
Question ONE (25 MARKS)
Public procurement in Kenya faces many challenges today and the procurement professional as
employees of the government has borne the brunt of these challenges. The professional faces a
very competitive tenderes who are ready to do anything they can to win bids while the Public
Procurement and Asset Disposal (PPAD) Act 2015 must be adhered to the letter. A senior
official in the Ministry of Treasury recently contacted the Public Procurement Regulatory
Authority(PPRA) about how due process can be used to aid in the turning a round of the fortunes
of this very crucial tendering process towards value for money. After some preliminary analysis
towards proactive strategic purchasing, the authority in collaboration with private sectors player
floating the idea of developing criterion with clear requirement solution for all bidders/tenderers
Page 1 of 5
, that could provide them with comprehensive guidelines. The analysis revealed that the current
purchasing strategy across the country was very inefficient since it exposed the purchasing to
being encroached by interested parties, the purchasing professional were unaware about the new
guidelines required to conduct strategic procurement e.g the new Act PPAD 2015 as well as the
chapter6 of the constitution of Kenya about the techniques of strategic evaluation of bid
documents, followed by professional recommendation and finally the approval by the
Accounting Officer of a procuring entity. The proposed strategy (system) would be piloted in
one procuring entity whereby all the professional employees will be provided with guidelines of
strategic procurement and other techniques to help them to achieve objective of the proposed
guidelines.
Required:
a).Describe the potential bottlenecks of public procurement and suggest remedies to those
bottlenecks. 15 marks
b).In conceptualizing the above challenges facing procurement professional and the new PPAD
2015, how many methods can you identify to improve the inefficient tendering process?
10 marks
Question TWO
a).Explain how you would characterize the completion strategy of a high end department store
chain such as TUM and what are the key customer needs that TUM stores endeavor to satisfy.
10 marks.
b).Mr. Wamono argues that strategic procurement is a collective pattern of coordinated decisions
that act upon the formulation, reformation and deployment of procurement resources to provide
support to the overall strategic initiative directed towards achieving goals. In view of this explain
the benefits of strategic procurement management. 15 marks
Question THREE
Discuss how strategic purchasing and supply function could assist in the strategic requirements
of closer link with major vendors and finally developments in the field of Electronic Data
Interchange (EDI) . 25 Marks
Question FOUR
The relationship between a procurement entity and a vendor is of considerable strategic
importance. In view of this, justify this statement and explain the implications of this in respect
to purchasing strategy. 25 marks
Question FIVE
Page 2 of 5
SCHOOL OF BUSINESS
DEPARTMENT OF MANAGEMENT SCIENCE
UNIVERSITY EXAMINATION FOR:
FIRST YEAR FIRST SEMESTER EXAMINATION FOR DEGREE OF MASTER OF
SCIENCE IN PROCUREMENT AND SUPPLIES MANAGEMENT
BPC 5105: STRATEGIC PROCUREMENT AND SUPPLY MANAGEMENT
END OF SEMESTER EXAMINATION
SERIES:DECEMBER,2016
TIME:3HOURS
DATE: Dec2016
Instructions to Candidates
You should have the following for this examination
-Answer Booklet, examination pass and student ID
This paper consists of Choose No questions. Attempt question ONE (Compulsory) and any other TWO
questions.
Answer question ONE Compulsory and any other THREE questions
Do not write on the question paper.
Question ONE (25 MARKS)
Public procurement in Kenya faces many challenges today and the procurement professional as
employees of the government has borne the brunt of these challenges. The professional faces a
very competitive tenderes who are ready to do anything they can to win bids while the Public
Procurement and Asset Disposal (PPAD) Act 2015 must be adhered to the letter. A senior
official in the Ministry of Treasury recently contacted the Public Procurement Regulatory
Authority(PPRA) about how due process can be used to aid in the turning a round of the fortunes
of this very crucial tendering process towards value for money. After some preliminary analysis
towards proactive strategic purchasing, the authority in collaboration with private sectors player
floating the idea of developing criterion with clear requirement solution for all bidders/tenderers
Page 1 of 5
, that could provide them with comprehensive guidelines. The analysis revealed that the current
purchasing strategy across the country was very inefficient since it exposed the purchasing to
being encroached by interested parties, the purchasing professional were unaware about the new
guidelines required to conduct strategic procurement e.g the new Act PPAD 2015 as well as the
chapter6 of the constitution of Kenya about the techniques of strategic evaluation of bid
documents, followed by professional recommendation and finally the approval by the
Accounting Officer of a procuring entity. The proposed strategy (system) would be piloted in
one procuring entity whereby all the professional employees will be provided with guidelines of
strategic procurement and other techniques to help them to achieve objective of the proposed
guidelines.
Required:
a).Describe the potential bottlenecks of public procurement and suggest remedies to those
bottlenecks. 15 marks
b).In conceptualizing the above challenges facing procurement professional and the new PPAD
2015, how many methods can you identify to improve the inefficient tendering process?
10 marks
Question TWO
a).Explain how you would characterize the completion strategy of a high end department store
chain such as TUM and what are the key customer needs that TUM stores endeavor to satisfy.
10 marks.
b).Mr. Wamono argues that strategic procurement is a collective pattern of coordinated decisions
that act upon the formulation, reformation and deployment of procurement resources to provide
support to the overall strategic initiative directed towards achieving goals. In view of this explain
the benefits of strategic procurement management. 15 marks
Question THREE
Discuss how strategic purchasing and supply function could assist in the strategic requirements
of closer link with major vendors and finally developments in the field of Electronic Data
Interchange (EDI) . 25 Marks
Question FOUR
The relationship between a procurement entity and a vendor is of considerable strategic
importance. In view of this, justify this statement and explain the implications of this in respect
to purchasing strategy. 25 marks
Question FIVE
Page 2 of 5
