Strategic Supplier Relationship Management and Procurement Performance

The increased acquisition of goods and services from external suppliers has augmented the dependence of buying firms on the capabilities and performance of their supplier base. The relationships between a buying firm and its supplier have been traditionally characterized as adversarial and emphasis has been placed on competitive bidding, short-term contracts and multiple sourcing. Such an approach focus on short-term view of relationship without considering the long-term capabilities and outcome, it is the aim of every organization to achieve sustainability and operational excellence. For this reason organization adopt various strategies which include traditional arms length relationship and or strategic supplier relationship. The purpose of this study was therefore to analyze the influence of strategic supplier relationship management practices on the procurement performance of State Corporations in Nairobi County, Kenya.