Effect Of Supplier Relationship Management On Supply Chain Performance Of The Alcoholic Beverage Companies In Kenya

Abstract

Supplier Relationship Management (SRM) aims to ensure that there is collaborative interaction between the entity and its suppliers for the success of the enterprise. When evaluating performance of the supply chain, emphasis is placed on activities like delivery and product availability and the capacity of the inventory to yield greater performance. Manufacturing firms deal in products that are of similar attributes with a high degree of competition. Thus, to survive, entities in the manufacturing sector are force d to undertake strategic options so as to remain competitive. The essence of the inquiry was to bring out the link between SRM and the ability of supply chains to perform with focus on Kenyan alcoholic beverage entities. Specifically, the study sought to establish the effect of supply chain collaboration, supplier development and supply selection and evaluation on supply chain performance of the alcoholic beverage companies in Kenya. The relationship marketing theory and the agency theory were used to sup[port the inquiry. With adoption of descriptive design, 48 beverage alcoholic manufacturing entities in Kenya were targeted and the respondents were the supply chain managers. Census was used and thus 48 respondents were included in the study. The views of the respondents were gathered with aid of the questionnaire that were clos ended. There was piloting of the questionnaire prior to actual data to ensure that it as valid and reliable. It was SPSS tool that helped in processing the gathered views from the respondents with aid of means, standard deviation, and correlation and regression analysis. Both figures and tables helped in presentation of the findings. The study noted that while supply chain collaboration and supply selection and evaluation had significant effect on supply chain performance of the alcoholic beverage companies in Kenya, supplier development was not significant. The study concluded that supply chain collaboration and supply selection and evaluation had significant effect on supply chain performance of the alcoholic beverage companies in Kenya. The study recommended that supply chain managers of the alcoholic beverage companies in Kenya should improve on their supply selection and evaluation criteria and the supply chain collaboration practices so as to enhance supply chain performance of their firms. The study was limited with a relatively small sample size of 48 supply chain managers. The study recommended further research to be conducted in other nonalcoholic beverage companies in Kenya.