Influence of Supplier Relationship Management on the Performance of Food and Beverage Manufacturing Firms in Kenya: A Survey of Kiambu County
Keywords:Supplier segmentation, supplier collaboration, information flow, supplier development, organizational performance
AbstractManaging purchasing and supply relations have had an enormous effect on performance of all aspects of the SC. Poor relationship management has led to generally low performance in the supply chain, hampered by extremely high acquisition costs, long lead times, lower materials, poor reputation, low sales, lower market share and low profitability. The purpose of this study was to investigate the influence of Supplier relationship management on the performance of Food and Beverage manufacturing firms in Kenya. Specifically, the study sought to find out the influence of Supplier Segmentation, Supplier Collaboration, Information Flow and Supplier Development on Organizational performance of Food and Beverage Organizations. The study adopted cross sectional survey design using both qualitative and quantitative approaches. The target population for this study was Officers working in procurement, Warehousing and Logistics departments in 63 Food and beverage organizations in Kiambu County. The study used Census and Purposive sampling to pick 189 Officers from procurement, warehousing and logistics department. Data was collected by using questionnaires. The study established that supplier relationship management influenced by the elements of supplier segmentation, information flow, supplier collaboration and supplier development have a positive influence on performance of food and beverages manufacturing firms in Kiambu County. Results from correlation analysis showed that, supplier segmentation, information slow, supplier collaboration and supplier development were positively and significantly correlated with performance of food and beverages manufacturing firms. The study also concluded that supplier segmentation, information flow, supplier collaboration and supplier development are embraced by the management of various food and beverages manufacturers in Kiambu county. The study recommends that managers in food and beverage manufacturing firms develop strategies for their relations with suppliers, which will improve firm performance.
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