INFLUENCE OF STRATEGIC SUPPLIER MANAGEMENT ON SUPPLY CHAIN PERFORMANCE OF NON-GOVERNMENTAL ORGANIZATION: A CASE STUDY OF ONE ACRE FUND, KENYA
Abstract
Large budgets are being spent on supply chain related activities, with more than sixty percent of most organizational budgets going to procurement. Most Non-Governmental Organizations (NGOs) like One Acre Fund are yet to appreciate the important role of suppliers in improving the supply chain performance as depicted by late deliveries, user complains, low quality supplies, among other issues. Many organizations have not taken interest to manage and enhance supplier relationship, the result of which is poor quality supplies, high prices, delivery delays and ultimately unhappy end user and stakeholders’ discomfort. NGOs mostly serve the vulnerable in the society and inefficient supply chain would worsen their situation instead of helping them. The study sought to investigate the influence of strategic supplier management on supply chain performance of NGOs, A case study of One Acre Fund by looking at supplier sourcing and supplier development. The study targeted management staffs comprising of three hundred and forty management members at One Acre Fund in Kenya. The study used both stratified and purposive sampling to come up with a sample size of one hundred and eighty one respondents. Simple random sampling was used to select individuals that participated in the study. Questionnaires were used as instruments of data collection. The study concluded that the strategic supplier management has a great impact on supply chain performance at One Acre Fund. The study concluded that supplier sourcing and supplier development have a significant influence on the performance of supply chain. The study recommended that the NGOs update vendor list frequently with competent suppliers, embrace category management and supplier collaboration. This study recommended that the NGOs should organize supplier trainings and workshops to train them on supply chain systems and expectations, set goals with incentives attached as part of supplier development strategies for key suppliers. This would increase the level of accountability, efficiency and competitiveness in non-governmental organizations.
Key Words: Strategic Supplier Sourcing Strategic Supplier Development, Supply Chain
CITATION: Agunda, J. O., Murrende, S., & Juma, D. (2019). Influence of strategic supplier management on supply chain performance of non-governmental organization: A case study of one acre fund, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 709 – 724
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1420
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