Abstract: Competitive forces in today’s business world are putting firms under pressure to improve quality, delivery performance, and responsiveness while simultaneously reducing cost, which for many companies have resulted in increased outsourcing of activities. Consequently a greater dependency on supplier’s performance in terms of quality and delivery service has evolved. One important aspect of supply chain management is supplier management which is organizing the optimal flow of high-quality, value-for-money materials or components to manufacturing companies from a suitable set of innovative suppliers. This study therefore was aimed at evaluating the role of supplier management on procurement performance in manufacturing companies a case of East African breweries. The specific objectives covered supplier integration, supplier quality management, supplier collaboration and supplier training. Theories relevant to the study include: deeming’s theory, network governance theory and social capital theory which all shows how the variables link up with the mentioned theories. Study variables were discussed under the conceptual framework there after operationalized. The study adopted a descriptive design with the population being the employees of East African breweries and their suppliers. Pilot test was also carried done on 5 employees (1.25%) before the actual data was collected to ensure validity and reliability of the research instruments. Data was edited, coded and analysed by use of statistical package for social sciences (SPSS version 21) and presented through tables and graphs. The study findings indicated that 81% of change in procurement performance at EABL can be explained by four variables namely buyer supplier integration, Supplier quality management, Supplier collaboration, and Supplier Training. Supplier performance management is key to procurement performance as suppliers are integrated into organizations activities. EABL has a strong collaborative relationship with its suppliers and undertakes measures to train them. This has improved procurement performance to great extent (94.6%).However supplier integration and to be specific shared technology has not properly been achieved. EABL should focus more on integration and to maintain or improve on supplier collaboration and supplier training.
Keywords: Procurement performance, buyer-supplier integration, supplier quality management, supplier collaboration and Supplier training.
Title: Role of Supplier Management on Procurement Performance in Manufacturing Sector in Kenya: A Case of East African Breweries, Kenya
Author: ANNY BETHER KEPHER, DR. ISMAEL NOOR SHALLE, ODUMA EVANS
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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