Supplier Selection Criteria and Supply Chain Performance in Non-governmental Organization’s in Kenya

Abstract

The Non- Governmental Organization plays a key role in Kenya’s development. That’s why many NGO’s have deployed strategies in the management of their supply chain. These strategies include the criteria in which the NGO’s select their suppliers’. Selection of suppliers is a process that involves multi-objective decision, encompassing many tangible and intangible factors in a hierarchical manner and the applicability of the criteria used will depend on the product or service produced and the market for which these products or services is targeted. A robust decision should be made once the selection criteria are compatible with the organization competitive strategy since it’s possible to achieve an alignment between the two its goals and objectives. NGO’s aim of making the best decisions in choosing a criterion is to optimized supply chain performance The overall objective of this research was to determine the factors that affect supplier selection decisions and also to establish the relationships between supplier selection criteria and supply chain performance of NGO’s in Kenya. The study focused on only 48 highly active NGO’s in Kenya from a population of 2,507 NGO’s available in Kenya. Descriptive research design and proportionate random sampling were used to achieve the results. In this paper a set of supplier selection decision was adapted to design the questionnaire for practical survey. The questionnaire was designed to find out the relationship supply chain performance and selection decision. Data was analyzed using SPSS software version 21 for windows. The results confirmed that supply chain decisions play a very important role in agreement with the criteria aligning with the NGO’s strategy.