Sub-Optimal Performance of Enterprise Resource Planning Systems in Non Governmental Organizations in Kenya: A Case Study of AMREF Kenya

Abstract

The Non-Governmental Organizations play a key role in Kenya’s development. Many NGO’s have deployed Enterprise Resource Planning (ERP) systems in their management of the supply chain. There is a problem with Non-Governmental Organizations’ (NGO) ERP systems: they experience varying degrees of inefficiencies with the deployment and application of the e-procurement software.  This research had the overall objective of investigating the factors contributing to the sub-optimal performance in the ERP performance in the NGO’s in Kenya. The choice of AMREF is that it is one of the largest and oldest NGO’s in the medical sector in Kenya which recently implemented ERP systems. It is facing inefficiency issues with its ERP system. The research applied descriptive research design and used random sampling technique. The data collection was done with the aid of questionnaires. The key finding was that the Enterprise Resource Planning (ERP) training is wanting in terms of relevance and appropriateness.   The study recommends inter alia that training be made more involving by incorporating the stakeholders from other departments to participate in the training exercise other than to leave it to the supplies unit and the consultant.  It also recommends that the procurement procedures be enhanced in order to reduce on the number of signatories required and thus hasten the decision making process.

Keywords: Enterprise Resource Planning, Non-Governmental Organizations, Sub-Optimal Performance