EFFECT OF SUPPLIER DEVELOPMENT ON PERFORMANCE OF SUPERMARKET CHAINS IN KENYA: A SURVEY OF SUPERMARKETS IN NAIROBI CITY COUNTY CBD

Abstract

This study sought to establish the effects of supplier development on organisational performance. The target population of the study was supermarkets in Nairobi central business district (NCBD) while the study population was the management staff in these supermarkets. A sample size of 3 of the respondents was targeted in each supermarket contributing to 63 respondents. Quantitative data was coded and entered into Statistical Packages for Social Scientists Version 21 and analysed using descriptive statistics. The study established that most of the supermarkets considered supplier development as a strategy for organization development. The study further established that supplier evaluation influenced the performance of the organizations to a great extent. The study further established that buyer-supplier communication influenced the performance of the supermarkets to a great extent. The study also established that supplier capabilities influenced the performance of the supermarkets to a great extent. Finally the study established that top management support is of paramount importance in enhancing the performance of the supermarkets. The study concluded that supplier development helps to improve performance in the organizations to great extent. Based on the findings the study recommends that organizations should select their suppliers carefully and evaluate them regularly in order to sustain effective and reliable sources of supplies. The study also recommends that the organizations should adopt an open and frequent communication between their personnel and their suppliers so as to increase both parties understanding and encourage conflict resolution between both parties. In order for the local supplier development program to be successful, there needs to be a communication framework in place communicating these needs to the local suppliers. This will enable the local suppliers to plan on how best they can respond to these needs and most importantly plan on how best they can prepare themselves to these needs especially the future needs.Key terms: supplier evaluation, communication, supplier capabilities, top management support, Supermarket Chains