FACTORS AFFECTING SUCCESSFUL IMPLEMENTATION OF BUYER - SUPPLIER RELATIONS ON PROCUREMENT PERFORMANCE AMONG LOGISTICS SERVICE PROVIDERS IN KENYA: A CASE OF DHL EXEL KENYA
Ochido Grace - Jomo Kenyatta University of Agriculture and Technology, Kenya
Ochiri George - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Buyer - Supplier Relations Management is becoming increasingly relevant to organizations in modern times. The main objective of Buyer-Supplier Relations is to make the sourcing process between businesses and their suppliers more effective and streamlined.. The purpose of this study was to investigate factors affecting successful implementation of buyer-supplier relations on procurement performance in the Logistics Industry. The study was guided by the following specific objectives: To assess effect of information technology on procurement performance, to establish the effect of supplier relationship model on procurement performance, to determine the effect of Supplier development on procurement performance, to determine the effect of Organization Structure on procurement performance. The research design used for this study was a descriptive design. The study adopted quantitative and qualitative research methods, and used both secondary data from literature review as well as primary data in the form of questionnaires. The study adhered to appropriate research procedures and consent was sought before administering the questionnaires. The target respondents for this study comprised of firms senior, functional and first line managers with direct or in-direct involvement or responsibilities within buying firm. A sample size of 83 respondents was obtained using the Yamane formula. The study used stratified sampling method in identifying respondent at each level within the firm. The collected data was edited, coded and entered for analysis using statistical package for analysis (SPSS) version 17. The responses obtained from the questionnaire were analyzed in detail. The data was presented in the form of frequency tables, pie charts graphs bar graphs. In particular data was analyzed using inferential statistics, by use of correlation and multiple linear regressions models to determine the relationship between dependent and independent variables. Multiple regression analysis was used to identify the dimensions of buyer-supplier relationships that make the greatest relative contribution to the explanation of procurement performance construct. The research finding reveals that all the variables of the study had a positive linear correlation with procurement performance. All the variables were found to be statistically significant with p-values of less than 0.05. The study recommended the organization should continually strive to overcome the procurement challenges through proper procurement governance that assist to track the benefits derived from buyer – supplier relationship management. More up-to date Information Technology systems should be adopted to address the increasing globalization and enhance levels of competitive advantage.
