INFLUENCE OF SUPPLIER SELECTION ON PROCUREMENT PERFORMANCE AMONG TEA BUYERS IN MOMBASA

Abstract

The purpose of this research project was to investigate the influence of supplier selection on
procurement performance among Tea Buyers in Mombasa. The specific objectives include to
examine the influence of supplier competency on procurement performance among Tea Buyers
in Mombasa, to find out the influence of supplier control on procurement performance among
Tea Buyers in Mombasa, to establish the influence of supplier collaboration on procurement
performance among Tea Buyers in Mombasa and to investigate the influence of supplier quality
management on procurement performance among Tea Buyers in Mombasa. The study adopted
Competency Theory, Control Theory of Supply Chain Management, Relationship Management
Theory, Deming’s theory of Total Quality Management, and Performance theory. The study
adopted a mixed research design with a target population of 148 drawn from various tea buyers
who conduct business with various suppliers. In this stratified sampling was applied to generate
a sample size of 108. Structured questionnaires were used to obtain primary data while
secondary data was gotten using published journals, books, internet, and magazines. Statistical
package of social science (SPSS), Package 25 was used to facilitate data processing and
analysis. The relationship between independent and dependent variables were determined using
a multivariant regression analysis and the strength of the relationship of independent and
dependent variable was determined by use of Pearson correlation coefficient (r). The study
showed that there was a positive correlation between all the four independent variables and the
dependent variable procurement performance among tea buyers in Mombasa. The study
concludes that supplier competency, supplier control, supplier collaboration and supplier
quality management have a significant effect on procurement performance among tea buyers in
Mombasa. That the study recommended that suppliers should develop competent technical
abilities so as to provide high quality products or services. Some of the technical dimensions
that suppliers should develop competence in include compliance with quantity, compliance with
due date, compliance with packaging standard, production planning systems of suppliers, and
maintenance activities of suppliers, plant layout and material. The study recommended the need
for suppliers to enhance their control so as to meet the expectations of their customers. Control
is one of the key factors for any company’s success and therefore suppliers should be evaluated
based on this criterion. Some of the criterion that firms can use to assess their suppliers is
Technological level, which involves general assessment of the supplier’s control and capability
in terms of innovation and technology. The study recommended that suppliers should formulate  an effective collaborative plan, which will ensure that their financial viability is sustainable and
strategic alliances. Also, the study recommends that tea buyers should set some funds apart to
allow site visit to the supplier. This will enable them to have a firsthand information on
whether the supplier is really in a position to supply goods to them and if they are actually
having financial capacity. The study established that supplier quality commitment, and in line
with this the study recommended the need for suppliers to improve on the quality of their
services. The improvement of the mentioned quality aspects will lead to improved service
provision by suppliers, which will translate into increased performance of state corporations.
Also, it’s important to check the supplier’s reliability in terms timeliness and also check if
suppliers are in conformance with ISO standards.