Supplier Relationship Management and Organizational Performance of Food and Beverage Manufacturing Companies in Nairobi County, Kenya

Mukalai Kabana Joel, Dr. Millicent Mboya

Abstract


Supplier Relationship Management (SRM) is a strategic approach to managing a company's interactions with organizations that supply the goods and services it uses. Despite growth, challenges like high costs, competition from imported goods, compliance issues and access to financing hinder the full potential of the Kenyan food and beverage manufacturing sector. The general objective of the study was to examine the influence of supplier relationship management on the performance of food and beverage companies in Nairobi County, Kenya. Specifically, the study sought, to establish the influence of supplier strategy development on the performance of food and beverage companies in Nairobi, Kenya and to establish the influence of supplier strategic collaboration on the performance of food and beverage manufacturing companies in Nairobi, Kenya. The study adopted a descriptive research design. The study focused on 16 top food and beverage manufacturing companies located in Nairobi County, targeting 2 financial managers for each manufacturing company, 2 operations managers, 2 customer service managers, 2 marketing managers, and 2 supply chain officers, giving us a target population of 192. To determine the sample size, the Slovin formula was used. By applying the formulae, from a population (N) of 192, the desired sample for the study accurately is 130 samples. The study mainly used questionnaires as data collection tools. The data was analysed using SPSS version 26 and was presented in form of pie charts, graphs, tables, and figures. The study concludes that supplier strategy development has a positive and significant effect on performance of food and beverage companies in Nairobi, Kenya. The study also concludes that supplier strategic collaboration has a positive and significant effect on performance of food and beverage manufacturing companies in Nairobi, Kenya. Based on the findings, the study recommends that the management of food and beverage manufacturing companies in Kenya should establish long-term partnerships with local suppliers. This approach can enhance supply chain reliability, reduce costs associated with transportation and importation, and foster better communication and collaboration. Further, the study recommends that the management of food and beverage manufacturing companies in Kenya should implement a robust supplier performance management system. This system should include regular assessments based on key performance indicators (KPIs) such as quality, delivery timeliness, and cost efficiency.

Keywords: Supplier Strategy Development, Supplier Strategic Collaboration and Food and Beverage Manufacturing Companies


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References


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