Buyer - Supplier Relationships Management Strategies And Procurement Performance Of Large Scale Manufacturing Firms In Kenya

Abstract

The main aim of this study is to establish buyer-supplier relationships management strategies and procurement performance of large scale manufacturing firm in Kenya. The study was guided by specific objectives that included; to establish the buyer - supplier relationships management strategies commonly used by large scale manufacturing firm and to determine the relationship between buyer - supplier relationships management and procurement performance of large scale manufacturing firm. The study used cross-sectional survey research design. The population of interest in this study consisted of large manufacturing companies that are members of KAM (Kenya association of manufactures) in Nairobi. The population of this study was 1500 firms. The 10% of the target population of 1500 respondents made a sample size of 150 manufacturing firms. The study used both primary and secondary data which was largely quantitative and descriptive in nature. Mean and standard deviations was used as measures of central tendencies and dispersion respectively. Regression and correlation analysis was used to assess the strength of the relationships between the specified variables. From the findings indicated that communication among the supply chain partner is related to the degree of critical and proprietary information shared among each other’s. Information sharing involved information related to logistics, customer orders, forecasts, schedules, market and so on. Strategic partnerships with buyer and suppliers enable organizations to work more effectively with a few important suppliers who are willing to share responsibility for the success of the products. Recommendations were made that large manufacturing firms in Nairobi County and outside Nairobi should be advised to embrace the concept so that they can be able to reap the benefits of adopting these strategies. Large manufacturing firms are also advised to adopt the practices that are currently adopted at a very small extent because they can significantly improve organization performance from the current position.