Role of Buyer Supplier Relationship on Supply Chain Performance in Kenya’s State Corporations: A Case Study of Kenya Tea Development Agency

The purpose of the study was to investigate the role of effective buyer supplier relationship on supply chain performance in Kenya. The study objectives were to identify how lead time, quality, cost and employee morale affects effective buyer supplier relationship on supply chain performance in Kenya. The researcher adopted descriptive research design and census sampling technique. A target population of 56 and a sample of 56 respondents was selected. Data was collected by the use of a semi structured questionnaire that used both closed and open ended questions. Data was coded and then analyzed descriptively using Microsoft Excel and the results presented in tables, pie charts and graphs. From the findings 80% of the respondents agreed that lead time affected buyer supplier relationship on supply chain performance, 57.1% said that cost affected buyer supplier relationship on supply chain performance. Majority 90% of the respondents agreed that quality affected buyer supplier relationship on supply chain performance and 53.1% of respondents said employee morale affected buyer supplier relationship on supply chain performance to a very high extent. The researcher concluded that customers' expectations were increasing and organizations were prone to more and more uncertain environment. The organization must realize that they must harness the power of technology, effective relation with their supplier to collaborate with their business partners. The researcher recommends that for the organization to remain competitive, it has to offer superior quality goods at the lowest prices possible. The need to minimize product costs makes effective supply chain management vital. The organization should have good relation with the supplier to enhance efficiency. An organization that employs effective supply chain officers is able to achieve efficiency of its operations since only those values adding activities (VAA) are encouraged. This ensures that the organization’s processes flow smoothly and output keeps in line with the organization's needs. The employees who are highly motivated works towards achieving the goals of the organization. The organization should ensure that they have competent supply chain staffs who focus on ensuring buyer supplier relationships are met.