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Research Paper | Business Management | Kenya | Volume 8 Issue 10, October 2019

Influence of Supplier Development Practices on Procurement Performance in Food and Beverage Manufacturing Firms in Nakuru East Sub - County, Kenya

Jackline Nabiliki | Dr Daniel M. Wanyoike | Wilfred N. Mbeche

Abstract: Though, many food and beverage manufacturing firms in Kenya are experiencing growth in several areas, the increase in demand for their products and services has necessitated an increase in their manufacturing capacity which has led to increased operational challenges. The purpose of this study therefore was to establish the influence of supplier development practises on procurement performance of food and beverage manufacturing firms in Nakuru East Sub-County, Kenya. The study specifically sought to establish the influence of supplier training, supplier appraisal, supplier partnership and supplier financial support on procurement performance. The study was anchored on two theories, namely: Human capital Theory and Social Exchange Theory. A survey research design was employed since it permits gathering of data from the respondents in natural settings. The study targeted all procurement staff and accountants in the food and beverage manufacturing firms in Nakuru East Sub-county since they are individually and collectively involved in all the procurement decisions in their respective manufacturing firms. The target population therefore comprised of all procurement staff and accountants in 16 food and beverage manufacturing firms totaling to 48 procurement staff. Data will be collected using a structured questionnaire. The data was analyzed using both descriptive (means and standard deviations) and inferential statistics (correlation and regression) with Statistical Package for Social Sciences (SPSS) and the results presented in tables. The study findings revealed that; firms have instituted policies which guide supplier training on procurement needs. It was also revealed that, trained suppliers will always supply quality products, thus reducing the number of raw material defects. This study findings revealed that; the firms should provide financial guarantees to the their suppliers, the firms also provides the suppliers with documentary support. The researcher concluded that, supplier training enhances efficiency and thus enabling the firms to report very few legal challenges in the procurement system. The study concluded that, food and beverage manufacturing firms in Nakuru East sub- County, Kenya should offer financial support to suppliers and also pay suppliers within the shortest time possible. Further studies may also be conducted to relate supplier evaluation and procurement performance in other manufacturing firms.

Keywords: Supplier Development Practices, Procurement Performance, Manufacturing Firms

Edition: Volume 8 Issue 10, October 2019,

Pages: 26 - 34

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