Assessment of agile procurement strategies and operational performance of animal feed manufacturers in Nakuru county, Kenya

Abstract

Agile procurement strategies enable organizations to adapt to dynamic market conditions, enhancing efficiency and innovation. In Kenya, animal feed manufacturers play a vital role in sustaining the agricultural sector, contributing to economic development. However, challenges, particularly significant production and operational inefficiencies impact the sector's performance. The current research examined how agile procurement strategies influence operational performance among animal feed manufacturers. The objectives included evaluating the effect of dynamic sourcing, adaptive contracting, collaborative supplier relationships, and iterative procurement planning on the animal feed manufacturers’ operational performance. Theoretical foundations for the study included dynamic capabilities theory, transaction cost theory, stakeholder theory, and network theory. Employing a descriptive research design, the research focused on all 17 licensed animal feed manufacturers in Nakuru County. The study included all 85 operations managers, supply chain officers, production managers, accountants, and clerical officers by using the census method. Questionnaires were selected for data collection. Both descriptive and inferential techniques were applied in the analysis. Data analysis was aided by the Statistical Package for Social Sciences (SPSS), with the findings being presented in tables. Descriptive findings established that agile procurement strategies affect the animal feed manufacturers’ operational performance. The correlation analysis revealed significant association between dynamic sourcing, adaptive contracting, collaborative supplier relationships, iterative procurement planning, and operational performance, with correlation coefficients of (r=0.539**), (r=0.468**), (r=0.761**), and (r=0.506**), respectively. Findings from regression analysis revealed a coefficient of determination (R² = 0.733, indicating that agile procurement strategies explain 73.3% of the variation in operational performance. Therefore, it was evident that animal feed manufacturers’ operational performance was significantly determined by the agile procurement strategies. The study concludes that dynamic sourcing within agile procurement enhances operational performance by enabling manufacturers to adjust to market changes and maintain consistent supply chains, thereby increasing efficiency and minimizing disruptions. Adaptive contracting improves operational sustainability by optimizing resource utilization in response to market conditions. Additionally, collaborative supplier relationships foster trust and information sharing, which positively determines the animal feed manufacturer’s operational performance. In recommendation, animal feed manufacturers should strengthen their efforts to build robust, trust-based relationships with suppliers. Additionally, they need to adopt rapid adjustments to market fluctuations and ensure that their supply chains are reliable and sustainable for long-term operational performance.