The Relationship Between Supplier Collaboration and Pharmaceutical Firms’ Performance in Nairobi City County, Kenya
DOI:
https://doi.org/10.70619/vol5iss3pp66-82Keywords:
Supplier collaboration, supply chain, pharmaceutical firms, performance, Nairobi City County, KenyaAbstract
This study aimed to determine the relationship between supplier collaboration and pharmaceutical firms’ performance in Nairobi City County, Kenya. This study adopted a descriptive research design. The target population comprised procurement managers and supply chain (SC) managers working in 171 pharmaceutical firms in Nairobi County, including 22 local manufacturers and 149 importers and distributors. A sample of 184 respondents was selected using stratified random sampling to ensure balanced representation, with 92 procurement managers and 92 SC managers. Data were collected using structured questionnaires, which provided consistent and focused responses relevant to the study objective. It was analysed using descriptive and inferential statistics. Descriptive statistics entailed means and standard deviations, while the inferential statistics entailed Pearson’s Correlation and regression analysis. The findings indicate that collaborating with suppliers on risk mitigation improves customer satisfaction and service delivery. Jointly planning production and delivery schedules enhances order fulfillment accuracy and supply chain alignment. Involving suppliers in strategic decisions contributes to greater market share and responsiveness to customer demands. Engaging in joint sales forecasting and implementing vendor-managed inventory systems reduces lead times and improves inventory control. Sharing IT systems with suppliers enhances communication, data accuracy, and overall performance in pharmaceutical firms. It was concluded that collaborating with suppliers on risk mitigation improves customer satisfaction and service delivery. Joint planning of production and delivery schedules enhances order fulfillment accuracy and supply chain alignment. Involving suppliers in strategic decision-making increases market share and responsiveness to customer demands. Engaging in joint sales forecasting and using vendor-managed inventory systems shortens lead times and improves inventory control. Finally, shared IT systems with suppliers enhance communication, data accuracy, and overall performance of pharmaceutical firms. The study recommends that pharmaceutical companies in Nairobi City County enhance and formalize supplier collaboration by involving suppliers in strategic decision-making, joint production planning, and risk mitigation. Implementing shared IT systems and data-sharing platforms can improve communication, accuracy, and coordination, while adopting joint sales forecasting and vendor-managed inventory systems can reduce lead times, optimize inventory control, and ensure timely delivery, thereby improving service delivery, customer satisfaction, and overall performance.
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