EFFECTS OF SUPPLIER DEVELOPMENT ON PROCUREMENT PERFORMANCE OF WORLD FOOD PROGRAMME

Abstract

Procurement is increasingly becoming one of the critical and strategic functions of every organization with the potential to contribute positively to the success of operations leading to reliable service delivery and competitiveness. The purpose of the study was to establish the effect of supplier development on procurement performance at World Food Programme Kenya. The study had four objectives, to establish the effects of supplier training assistance on procurement performance in the organisation, to examine the effects of supplier financial assistance on procurement performance in the organisation, to examine the effects of supplier participation on procurement performance in the organisation and lastly to examine the effects of joint sourcing on procurement performance of the organisation. The theories used in this research project include; Theory of Constraints, Social Exchange Theory, and Resource Dependence Theory. This study adopted a descriptive survey research design to justify and enable a thorough examination of the effects of supplier development on procurement performance. Data was collected using questionnaires which was administered through “drop and pick” method. Mean and standard deviation was used to analyse the extent of concept implementation whereas regression analysis was used to analyse the relationship between supplier development and procurement performance at WFP. A pilot study was carried out to refine the instrument. The quality and consistency of the study were assessed using Cronbach's alpha. Data analysis was performed on a PC computer using Statistical Package for Social Science (SPSS Version 23) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables.  The conclusions were based on the objectives of the study that supplier development has an effect on procurement performance at WFP. The results established that supplier development was found to significantly and positively influence procurement performance at WFP in Kenya. When all the stated hypotheses were tested in the regression model they were found to have a significant relationship between themselves and procurement performance. Supplier financial assistance was the driver which had the highest effect on procurement performance. The findings of the study established that supplier development was operating under a highly competitive environment. The study recommended that WFP should continually carry out supplier development to encourage good governance among the suppliers; that WFP should continually train key suppliers since it continually cuts down costs on products and services and enhances product quality. That WFP should not offer financial support to suppliers instead they should pay suppliers within the shortest time possible. Finally, joint sourcing between WFP and source partners must be supported from the entire organization. A buyer must have the authority to negotiate with a supplier and come to an agreement that carries mutual trust and benefit.

Key terms: Supplier Development, Procurement performance, Supplier training assistance, Supplier financial assistance, Supplier participation, Partnership sourcing, Supply chain, Procurement, Humanitarian organisations, financial investment