Supplier management practices and supply chain performance of retail sector in Kenya

Abstract

Abstract Supply chain performance is vital to the success of the retail sector, as it directly influences product availability, customer satisfaction, and operational efficiency. However, the collapse of major retailers like Nakumatt and Uchumi has been partly attributed to poor supply chain management, resulting in profitability declines and operational disruptions. Thus, this study aimed to examine supplier management practices on supply chain performance in Kenya's retail sector. The specific objectives was focusing on supplier selection criteria, supplier collaboration, supplier value management, and supplier capacity building. Anchored on transaction cost theory, resource dependence theory, value chain theory, and dynamic capabilities theory, the study adopted a quantitative approach with a descriptive research design. The target population comprised 13 major supermarket chains, with a census approach yielding a sample size of 78 respondents. Data was collected using a closed-ended Likert scale questionnaire through a drop-and-pick method. Descriptive and inferential analyses was conducted, and findings were presented using tables and charts. The study finding shows that reputation, financial stability, and timely delivery are key supplier selection criteria prioritized by organizations. The study finding indicates that supplier collaboration is strong in Kenyan supermarkets, especially in joint forecasting and shared planning. The study finding reveals that suppliers contribute significantly to customer value through unique product features and flexible responses to market changes. The study finding highlights that suppliers invest in training and innovation, though scalability and technological integration remain areas with mixed performance. The study concluded that supplier collaboration is strong. The study concluded that supplier selection depends on credibility and delivery. The study concluded that supplier value boosts competitiveness. The study concluded that capacity building improves performance. The study recommended that supplier collaboration be strengthened through better digital integration. The study recommended that supplier selection focus more on financial transparency and delivery efficiency. The study recommended that supplier value management emphasize flexibility and long-term alignment. The study recommended that supplier capacity building prioritize innovation and scalability.