EFFECT OF SUPPLIER RELATIONSHIP MANAGEMENT ON PROCUREMENT PERFORMANCE OF COAST WATER SERVICE BOARD

Abstract

The general objective of the study was to determine the effect of supplier relationship 
management on procurement performance. The study focused on four specific objectives which 
included effects of supplier collaboration on procurement performance, effects of supplier 
commitment on procurement performance, effects of supplier feedback on procurement 
performance and effects of supplier lead time on procurement performance. In order to get a 
deeper understanding of the variables of the study, literature review on supplier relationship 
management on procurement performance was reviewed and theories used such as social 
network theory, commitment-trust theory, communication theory and lastly transactional cost 
theory. The study employed descriptive and inferential research design methods. The target 
population for the study was 62 employees of Coast Water Service Board from respective 
departments. The sample size was 54 which were arrived at by using Crochan‟s formulae from 
the target population. The study also adopted quantitative research design. The study used both 
primary and secondary data in collection of data from the respondents. Data collection was done 
using questionnaire method. Out of the 54 questionnaires that were dropped, only 50 were 
returned and fully filled. The researcher used pilot testing to ascertain the validity and reliability 
for the results for the study. Data analysis and interpretation was based on descriptive statistics as 
well as inferential statistics mainly regression analysis and Pearson correlation. Data presentation 
was done through frequency distribution of tables. From the findings, the independent variables 
that are the supplier collaboration, supplier commitment, supplier feedback and supplier lead 
time have strong significant relationship with the dependent variable procurement performance 
and is concluded that they are key determinants of procurement performance in an organization. 
It is therefore recommended that the Management of Coast Water Service Board put more 
emphases on building long term relationships with suppliers, systems should be integrated with 
the suppliers for easy flow of procurement processes an also strategies and policies on managing 
relationships with suppliers should be put in place The study revealed that cooperating with our 
suppliers is beneficial to organization in regards to long term relationships and in the long run 
good procurement performance.