Supplier Quality Management and Operational Performance of Cement Manufacturing Firms in Kenya

Abstract

Evolving customer needs have forced firms to rethink their strategies and devise more efficient and effective ways to achieve operational performance (OP). Supplier quality management (SQM) involves a different set of management-driven efforts towards improving quality performance to realize supplier quality management. This calls for development of quality purchase policies and developing effective ways to maintain effective communication between the firm and the stakeholders. The main objective of this study was to establish the effect of SQM practices on operational performance of cement manufacturing firms in Kenya. Specific objectives were as follows: determining SQM practices utilized by cement firms in Kenya and establishing the link between SQM practices and OP of cement firms. To accomplish the objective of this research, a descriptive research design was employed to establish the link between SQM practices and OP of Kenya‟s cement producing firms. A census survey of 7 cement manufacturing companies was carried out since the population was small. A structured questionnaire was used to collect primary data. Analysis of data was done using descriptive statistics and regression analysis. It was found that the most popular SQM practices utilized by cement manufacturing firms were supplier performance measurement, supplier performance monitoring, supplier audit, competitive supplier selection and supplier integration. These practices were utilized to a large extent. The findings also established that supplier performance monitoring; supplier audit and supplier performance measuring were significantly related to OP. However, supplier integration supplier development practices and competitive supplier selection practices were insignificantly linked to OP. The study found that the challenges that faced cement manufacturing firms in implementation of SQM were failure to sponsor trainings for employees, failure to carry out regular supplier audits, high rate of employee turnover, limited funds and change resistance. It would be appropriate for cement manufacturing firms to consider sponsoring their staff for training and development programs regularly to build their technical skills and competencies. Top management should provide an enabling environment for employees by supporting them and giving them all the required resources and facilities to participate in the implementation of SQM practices. This study was limited to resources and time and this limited the scope of this study to cement manufacturing firms only. As such, the findings obtained under this study are limited to cement manufacturing firms and cannot be generalized to represent all manufacturing firms in Kenya. In future, researchers should consider duplicating this study to cover the entire manufacturing firms in Kenya, then findings can be compared, and a plausible conclusion drawn based on facts.