Supplier Selection Criteria and Supply Chain Performance in Non-Governmental Organizations in Kenya

Abstract

The Non-Governmental Organization plays  a  key role in  Kenya’s  development. That’s why many NGO’s have deployed strategies in the management of their supply chain. These strategies include the criteria in which the NGO’s select their suppliers’. Selection   of   suppliers   is   a   process   that   involves   multi-objective   decision, encompassing many tangible and intangible factors in a hierarchical manner and the applicability of the criteria used will depend on the product or service produced and the market for which these products or services is targeted. NGO’s aim of making the best decisions in choosing a criterion is to optimized supply chain performance. The overall objective of this research was to determine the factors that affect supplier selection decisions and also to establish the relationships between supplier selection criteria and supply chain performance of NGO’s in Kenya. The study focused on only. 48 highly active NGO’s in Kenya from a population of 2,507 NGO’s available in Kenya. Descriptive research design and proportionate random sampling were used to achieve the results. In this paper a set of supplier selection decision was adapted to design the questionnaire for practical survey. The results confirmed that supply chain decisions play a very important role in agreement with the criteria aligning with the NGO’s strategy. Successful management of the supply chain is the key to the long term success of an organization. Suppliers have to be selected carefully, as they can have a very positive or a very adverse impact on the   overall performance of the organization.

Key Words: Non-Governmental Organization; Supply Chain; Supplier selection; Performance