ROLE OF BUYER-SUPPLIER RELATIONSHIP ON PROCUREMENT PERFORMANCE IN THE PUBLIC SECTOR IN KENYA: A CASE OF MINISTRY OF EAST AFRICAN AFFAIRS, COMMERCE AND TOURISM

Abstract

Buyer-supplier relationships management have in recent times become more strategic in nature and the process of relationship development has become more vital as organizations create better relationships with their suppliers to achieve their goal. Government ministries play a major role in the development of the country through provision of public services and have become a strong entity in Kenya and very useful engines to promoting development. The general objective of this study is to evaluate the role of supplier segmentation, development, selection and Information management on buyer-supplier relationship management on procurement performance. A descriptive research design was used in this study. The population of this study comprises of all staff at Ministry of East African Affairs Commerce and Tourism which is 270 employees. The study sample size was 135 staff which included staff in the department of Supply Chain management. Data was collected using structured questionnaire to ensure consistency. The response rate was 81.4%; the study indicates that supplier development influences the procurement performance most followed by supplier selection, information management and finally supplier segmentation. In conclusion, supplier selection encourages buyer supplier’s relationship, and organization should consider quality and reliability when selecting a supplier. Again organization should evaluate their suppliers training and support them. The study agrees that information management enables information sharing between suppliers and the organizations.