Purchaser-Supplier Relationship And The Performance Of The Purchasing Department Case Study: Kenafric Industries Ltd (Ki) Based In Nairobi Town

Abstract

This study was set to determine the contribution of Purchaser-Supplier relationship to the

effective performance of the Purchasing Department.

The Study looked specifically to the relationship to requirement

specification, profit leverage, quality assurance and better deliveries and lead time

reduction.

The study used a survey approach in research design. was gathered using

questionnaires. The questions were also used as interview questions where questionnaire

was not applicable. The questionnaires were results of the piloting and

reliability calculation.

A number of section heads in the purchasing department from the organization were used

as targeted population. These were from Industries Ltd (ki).

The data was presented and analyzed using frequencies and percentages where the

findings were analyzed immediately.

The following are some

1. It was found out that the organization, Kenafric Industries Ltd- Nairobi, Kenya

had purchasing department IS a and tactical leveL This

enabled them in easy implementation of purchaser-supplier relationship.

2. It was also established that the organization use financial strength, past

performance, equipment capacity, and management strength in

selecting suppliers to contract with. This enabled them to select the best supplier.

3. It was also tound out that the organization is using the following measurement in

evaluating the supplier performance; quality performance, delivery performance,

pricing policy and quantity performance. This enabled them to realize the

contribution of purchaser-supplier relationship to those areas of purchasing

functions.

4. The research established that purchaser-supplier relationship contributes to

purchasing department performance through following indicators: accurate

specification of requirement, high quality of incoming raw materials, profit

leverage through economical pricing and ..... ,.,rn,-.r deliveries and reduction of lead time.