INFLUENCE OF STRATEGIC SUPPLIER RELATIONSHIP ON SUPPLY CHAIN PERFOMANCE IN MANUFACTURING FIRMS IN NAIROBI COUNTY

Abstract

With the increased supply chain performance concerns and awareness among several stakeholders in the supply chain as well as interest groups such as consumer groups, manufacturing sector organizations may find it appropriate to adopt strategic supplier relationship management. This study is guided by Empowerment theory and Resource based view theory. The study was guided by the following objectives, supplier development programs and supplier segmentation-The research objectives and research questions set out and the scope of study limited to manufacturing firms in Nairobi County, Kenya. The research used descriptive research design. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. The population census was 405 respondents drawn from manufacturing firms Nairobi county with a sample size population of 201. The data was analyzed with SPSS version 23. Non probability sampling technique was used. As such, since the purposive non probability sampling technique would be appropriate. Questionnaires would be used to collect both primary and secondary data. Data collected was validated, edited, coded and then analyzed qualitatively. Descriptive statistics such as percentages and frequencies were used to summarize the data. Data presentation methods include tables, charts and figures. The study concludes that supplier development has a significant effect on performance of manufacturing firms in Nairobi County, Kenya. The study also concludes that supplier segmentation has a significant effect on performance of manufacturing firms in Nairobi County, Kenya. From the findings, this study recommends that manufacturing firms should establish structured supplier development programs aimed at enhancing the capabilities and capacity of key suppliers. Provide training, resources, and technical assistance to support their growth and improvement initiatives. In addition, the manufacturing firms should allocate dedicated resources and attention to strategic vendors who play a critical role in the manufacturing firm's supply chain. Establish long-term partnerships, align goals, and collaborate closely on strategic initiatives to drive mutual growth and success.

Key Words: Strategic Supplier Relationship Management Practices, Performance Of Manufacturing Firms, Supplier Development Programs And Supplier Segmentation