Strategic sourcing and performance of milk processors in Kenya

Hellen Njeri Ndung'u, Purity Mukiri Mwirigi and Kiende Karambu Gatimbu

International Journal of Procurement Management, 2023, vol. 16, issue 3, 396-421

Abstract: The dairy sector aids the global economy in terms of food security and contribution to the GDP. In Kenya, the dairy sector contributes 4% of GDP. Kenya has been the largest dairy producer in Sub-Saharan Africa, but recently has been facing a continuous decline in milk processing. Milk processors in Kenya receive only 12% of the marketed milk. The imported processing capacities end up underutilised by over 54% annually. Milk processors in Kenya have shut down while others get acquired due to poor performance. Therefore, the study investigated the influence of strategic sourcing on organisational performance of milk processors in Kenya. Primary data was collected using questionnaires. An ordered logistic regression model was used in econometric analysis. The study concluded that effective supplier relationships and technology use positively increase the likelihood of improvement in sales and capacity utilisation of milk processors in Kenya. This will translate into improved firm performance.

Keywords: gross domestic product; GDP; food agricultural organisation; FAO; Kenya Association of Manufacturers; KAM; Kenya Dairy Board; KDB; supply chain management; SCM; sustainable development goals; SDG's. (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpman:v:16:y:2023:i:3:p:396-421

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