Supplier Relationship Management and Performance of Supermarkets in Nairobi County, Kenya

Abstract

In Kenya, supermarkets are regarded as one of the primary contributors to the economy’s notable expansion and advancement. However, in recent times, the performance of the retail industry has been beset by several challenges. This study aimed to examine the effect of supplier relationship management on supermarket performance in Nairobi County. The research adopted a descriptive research design which focused on describing the phenomenon being studied. The research target population comprised 147 registered hyper and mega supermarkets operating within Nairobi City County. Stratified and simple random sampling techniques were employed. A sample size of 45 supermarkets and 135 respondents were selected for the study. In the analysis process, descriptive, inferential, and thematic statistical analysis was employed to analyze the data collected in this study. The study found that there is a positive and significant relationship between trust-based relationship management (β=0.0152, p=0.002), supplier segmentation (β=0.3154, p=0.002), and the performance of supermarkets. The study concludes that establishing and maintaining trust with suppliers is essential for ensuring a smooth and efficient supply chain, as well as fostering long-term partnerships that benefit both parties. Supplier segmentation helps supermarkets improve their overall performance by tailoring their approach to each supplier based on their specific needs and capabilities. The study recommends that when supermarkets have strong, trust-based relationships with their suppliers, they are more likely to receive timely deliveries, high-quality products, and competitive pricing. By segmenting suppliers, supermarkets can better match their specific needs and requirements with the capabilities of different suppliers.