Supplier Relationship Management and Supply Chain Performance of Flour Milling Companies in Nairobi County, Kenya

In Kenya, where agriculture forms the backbone of the economy, the production of flour has been steadily increasing, driven by the revenue generated from milling activities converting harvested grains into flour. However, challenges within the flour milling industry have emerged, leading to the closure of subsidiary firms like Mombasa maize and Kitui flour mills due to issues such as insufficient suppliers, competition, and subpar supply chain performance. The inefficiencies extend to the Nairobi context, where outdated supply chain management practices and technological limitations, coupled with weak institutional frameworks, lack of innovation, inadequate infrastructure, and skills shortages, have further hindered the performance of flour milling companies. This study investigates the effects of supplier relationship management on the supply chain performance of flour milling companies in Nairobi County, Kenya. The research focuses on four key supplier relationship management practices: trust-based relationship management, supplier collaboration, information sharing, and supplier quality. Using a descriptive research design, data were collected from ninety-six 96 employees across sixteen 16 flour milling companies through structured questionnaires. The findings reveal that information sharing has a significant positive effect on supply chain performance, while trust-based relationship management, supplier collaboration, and supplier quality exhibit positive but statistically insignificant effects. The study conclude that effective information sharing is critical for enhancing supply chain performance, and it recommends that flour milling companies adopt performance-based contracts, improve transparency, and enhance supplier evaluation processes to optimize their supply chain operations.