Supplier evaluation and performance of large food and beverage manufacturing firms In Nairobi, Kenya

Abstract

This study was carried out to determine the relationship between supplier evaluation and performance in large food and beverage manufacturing firms in Nairobi City County. The study had three objectives, to establish the criteria used in evaluating suppliers, to establish the performance levels and determine the relationship between supplier evaluation and performance. The research design adopted was the descriptive. The study targeted all the 46 food and beverage firms which were all sampled since it was a census. 27 successfully filled and returned the questionnaires that were used for analysis. The questionnaires we re administered through drop and pick later method. Standard deviations and means were used to analyze objective one and two whereas and correlation and regression analyses were used to determine the relationship between supplier evaluation and performance in large food and beverage manufacturing firms in Nairobi City County. The results are presented in tables. The results show that food and beverage firms evaluate their suppliers. There is a positive relationship between performance and the supplier eval uation criteria . E nvironmental friendliness of the supplier , employee capabilities of the supplier and price factors are significant while f inancial stability, quality issues, supplier’s organizational culture, production capacity of the supplier and prefe rence and reservation are insignificant . T he researcher recommends that supplier evaluation should be practiced in food and beverage firms because it is associated with better performance at the same time other firms outside this sector should be studied to ascertain whether the trend holds. F urther research could also be necessary in seeking to know w hy some criteria are insignificant .