Abstract: Prequalification procurement is a risk management strategy by procuring entities to reduce suppliers’ related risks such as failure to deliver supplies on time and safety needs, litigation costs due to failure or cancelation of tender, suppliers’ insolvency, technical competences as well as resource capabilities. Understanding supplier performance can both prevent problems and facilitate performance improvement. The main objective of this study was to establish the Influence of Suppliers Prequalification’s on Product Development on Registered Companies in Nairobi Securities Exchange. The study adopted a descriptive design. The target population of the study was 172 employees comprising of senior managers, middle-level managers and support staff working in the Registered Companies in Nairobi Securities Exchange. This research study used a stratified random sampling method to select 30% of the targeted respondents giving a sample size of 69 respondents. The study used questionnaires to collect primary data. Quantitative data were analyzed by descriptive statistics using statistical package for social sciences (SPSS V 21.0) while content analysis was used for the qualitative data. Also, a multivariate regression model was applied to determine the relative importance of each of the four variables concerning product development. The study found out that product assessment affected product development to a great extent mainly through quality level/ quality management policy, environmental, ethics and occupational health and safety policies. Capacity assessment affected product development to a very great extent through aspects such as financial capability and technical capability The study recommended that companies should clearly indicate the criteria they use to determine the capacity of the suppliers whether its financial capability, technical capability, human resource or process control capability as this helps the company know whether the supplier can guarantee sustained continuity of supply for future prequalification’s.
Keywords: Supplier quality management, Prequalification, Purchasing, Supplier rating.
Title: Influence of Suppliers Prequalification on Product Development on Registered Companies in Nairobi Securities Exchange
Author: Joyce Wangari Mbugua, Dr. Muchelule Yusuf
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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