EFFECT OF PROCUREMENT CATEGORY MANAGEMENT ON PERFORMANCE OF FOOD AND BEVERAGES MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

Manufacturing firms play an important role in a society and as such, successful organizations represent a key ingredient for developing nations. The manufacturing industry has been the engine of economic expansion and is the largest trading sector. Kenya's manufacturing industrial sector, on the other hand, has experienced modest growth rates of 4% on average over the last decade. The general objective of this study is to examine the effect of procurement category management on performance of food and beverages manufacturing firms in Nairobi city county, Kenya. The study was guided by the following specific objectives; to assess the effect of product management and price management on performance of food and beverages manufacturing firms in Nairobi city county, Kenya. The descriptive research design was employed where data was collected one point in time. The target population for this study was soft drink manufacturing firms in Nairobi Kenya. The study employed a census approach to collect data from the respondents. Data was collected using a self-administered semi-structured questionnaire. Data obtained from the field was coded, cleaned, and entered into the computer for analysis using the SPSS version 25. Descriptive statistical included frequency, percentages, mean and standard deviation. Inferential statistical analysis used was multiple regression and correlation analysis. The significant of each independent variable was tested at a confidence level of 95%. The study concludes that product management has a positive and significant effect on performance of food and beverages manufacturing firms in Nairobi city county, Kenya. In addition, the study concludes that price management has a positive and significant effect on performance of food and beverages manufacturing firms in Nairobi city county, Kenya. From the findings, this study recommends that Food and beverages manufacturing firms should invest in training their teams in product management practices. Further, the management should implement effective inventory management practices to ensure that emergency placements, primary placements, and respite placements are well-stocked and readily available when needed.