Supplier Relations Management and Performance of Companies in Nairobi County that Manufacture Food and Beverages

Supplier relations management involves fostering close partnerships between organizations and their suppliers, working collaboratively to achieve shared goals. Manufacturing sector has experienced sluggish growth in past decade compared to previous one. Additionally, many firms in this industry have recently reported declining gross earnings and sales revenues. The objective was to examine how supplier relations management affects performance and analyzed effects of: supplier assessment, and supplier development. The research was anchored on RBV, Goal-Setting and Institutional Theory. Study targeted 105 food and beverage manufacturing firms, from which 525 employees were considered. A sample of 255 respondents was selected. Ten industrial companies from Kiambu County participated in a pilot study. SPSS version 28 analyzed data after structured questionnaires were used to gather data. Findings were presented in tables. It established supplier relations management comprising supplier assessment and development, had a significant impact on the performance. To enhance performance, food and beverage manufacturing firms are advised to: Adopt a structured supplier assessment framework that includes, stability, compliance, sustainability, and innovation. Conduct regular audits and use supplier scorecards to track performance, promote transparency, and support continuous improvement. Provide constructive feedback and collaborate with underperforming suppliers to develop corrective action plans, thereby fostering long-term, mutually beneficial relationships. This study was limited to Nairobi City County. It is recommended that future research expand the geographical scope to other counties or conduct a nationwide study to provide broader and more representative insights into supplier relations management and performance.