SUPPLIER RELATIONSHIP MANAGEMENT AND PERFORMANCE OF FOOD AND BEVERAGES MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Ramla Dagane, Prof. Guyo Wario

Abstract


The general objective of this study was to establish the influence of supplier relationship management on performance of food and beverages manufacturing firms in Nairobi City County, Kenya. Specifically, the study sought to examine the effect of supplier selection on performance of food and beverages manufacturing firms in Nairobi City County, Kenya and to assess the effect of strategic collaboration on performance of food and beverages manufacturing firms in Nairobi City County, Kenya. The descriptive research design was employed where data was collected one point in time. This study therefore targeted senior management employees (1 top management employee, 2 middle level management employees and 3 lower management employees) in all the 105 firms. The total target population was therefore be 630 employees. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 239 respondents were chosen with the help of stratified random sampling technique. This study relied on both primary and secondary data. Primary data was collected through use of semi structured questionnaires. The study also conducted pilot test to test the validity and the reliability of the data collection instrument. The data collection instrument generated both qualitative and quantitative data. The study used both descriptive and inferential statistics for data analysis with the aid of Statistical Package for Social Sciences (SPSS version 25). Descriptive statistics such as mean, standard deviation, frequency and percentages were used in this study. In relation to inferential statistics, the study used correlation analysis. This was used to establish the relationship between the independent and the dependent variables. Data was then presented in a tables, bar charts and pie charts. The study concludes that supplier selection has a positive and significant effect on performance of food and beverages manufacturing firms in Nairobi City County, Kenya. The study also concludes that supplier collaboration has a positive and significant effect on performance of food and beverages manufacturing firms in Nairobi City County, Kenya. Based on the findings, the management of manufacturing firms in Kenya should develop a comprehensive set of criteria for evaluating and selecting suppliers. Further, the management should foster collaboration between the company and its suppliers by creating platforms for open communication, idea exchange, and joint problem-solving

Key Words: Supplier Relationship Management, Supplier Selection, Strategic Collaboration, Food and Beverages Manufacturing Firms


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References


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