EFFECT OF STRATEGIC SOURCING PRACTICES ON SUPPLY CHAIN PERFORMANCE OF RETAIL SUPERMARKETS IN NAIROBI CITY COUNTY, KENYA

Simon Thiong’o King’ori, Dr. Nelson Lambaino

Abstract


Retail supermarkets continually evaluate new methods on how to improve their performance. They achieve these improvements by increasing their revenue and decreasing cost. The study analyzes how retail supermarket can significantly enhance their performance by implementing strategic sourcing practices. The study majorly focused on effect of strategic sourcing practices on supply chain performance of retail supermarket in Nairobi City County. The study was guided by the following objectives: supplier collaboration relationship, E-procurement, procurement plan, strategic inventory management. The study employed descriptive statistics method in as a research design method. The study employed a census approach in data collection and targeted population of 60 made up of personnel from procurement /commercial department and branch management department from major retail supermarkets in Nairobi City County, where the whole population was included in the study. Data was collected by use of questionnaire and secondary data was obtained from retail supermarkets’ websites, published materials and journals. Reliability of the study instrument was enhanced by carrying out a pilot study. Data analysis was done through descriptive statistics while employing frequency and percentage in presentation. The study concludes that supplier collaboration relationship has a positive and significant effect on supply chain performance of retail supermarkets in Nairobi City County, Kenya. In addition, the study concludes that e-procurement has a positive and significant effect on supply chain performance of retail supermarkets in Nairobi City County, Kenya. Further, the study concludes that procurement plan has a positive and significant effect on supply chain performance of retail supermarkets in Nairobi City County, Kenya. The study also concludes that strategic inventory management has a positive and significant effect on supply chain performance of retail supermarkets in Nairobi City County, Kenya. Based on the findings, this study recommends that the management of retail supermarkets in Nairobi City County should continue embracing strategic sourcing practices to enhance supply chain performance.

Key Words: supplier collaboration relationship, E-procurement, strategic sourcing practices, supply chain performance


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References


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