Abstract:
The study was carried out with the purpose of examining the effect of supplier development
on procurement performance of kakira manufacturing firm. The objectives for the study was;
To determine the effect of supplier training on procurement performance, to determine the
effect of financial support on procurement performance and to determine the effect of
supplier involvement on procurement performance. The researcher applied both qualitative
and quantitative techniques in designing the research. A total of 36respondents participated in
the study and were selected using random sampling method. The data was collected using
questionnaires and interviews and presented using tables, graphs and pie charts for easy
analysis. The research findings revealed that indeed supplier development is crucial in
improving the supplier performance and the organisation performance. The study established
a significant positive relationship between two elements of supplier development namely
financial support and supplier involvement and organization performance; therefore, firms in
manufacturing industry ought to engage more in activities that help improve the operations of
their suppliers. The study also established a significant negative relationship between supplier
training activities and procurement performance hence, thus organization performance also in
conclusion this study suggests financial support is very important and that manufacturing
firms should be able to provide financial support to their suppliers. However, there are
challenges of finances as deduced from the study but all the firms need to do is work hand in
hand with the financial institutes It was however study recommends that the kakira
manufacturing firm should work hand in hand with the financial institutes to curb the
challenge of finances because providing funds to the supplier is not easy but when money is
available it becomes much easier. Also the study recommends that the organization should
fund well the training programs that they administer to their suppliers this will indeed to
better performance.
