Abstract: Supplier development has become a critical factor for the Procurement function’s success. Supplier development allows a buying firm with regard to its supplier to increase the performance and/or capabilities of the supplier to meet the buying firm’s supply needs through efficiency and effectiveness of its operations. It is one mechanism used to enable fast lead times, control of inventory, relationship and production costs through the supply chain. The main purpose of the study is to determine the effect of supplier development on purchasing performance. Specific objective is to determine the effect of supplier incentives on purchasing performance. The study based on the Theory of Constraints, Transaction cost Economies and Resource Dependence Theories. Descriptive research design through a case study on Nzoia Sugar Company in Bungoma County was used to undertake the study. The study targeted Department Heads, Heads of sections and section officers. Data was collected from a 96 out of the initial target of 116 respondents. The research instrument was tested for reliability by computing Cronbach alpha statistical tests which yielded a score of 0.791. Data was cleaned descriptive and inferential statistics. Descriptive statistics like means, frequencies and percentages were used. In addition, Pearson correlation was used to show the correlation between the variables which revealed a positive and significant results between supplier incentive and procurement performance (p<0.01, r = 0.716. Multiple regression was used to test the study hypothesis when significant at the 0.01 level had F=23.790, Sig=0.000, p<0.05).The study recommends that Nzoia Sugar Company should focus on identifying classifications of suppliers and ensure that they communicate this throughout the company, and adopt a supplier development matrix for its monitoring purposes. This study will help businesses develop the right capacities and strategies in the key aspects that sugar manufacturing companies can use for developing suppliers and form a basis on which other researchers can make reference
Keywords: Supplier development, Procurement performance, Supplier incentives, Bungoma County.
Title: Effects of Supplier Development on Procurement Performance in Bungoma County: A case of Nzoia Sugar Company
Author: Juma Ben Cheboss, Gregory Namusonge, Elizabeth Nambuswa
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
