ABSTRACT This study was set to determine the contribution of Purchaser-Supplier relationship to the effective performance of the Purchasing Department. The Study looked specifically to the contribution of this relationship to requirement specification, profit leverage, quality assurance and better deliveries and lead time reduction. The study used a survey approach in research design. Data was gathered using questionnaires. The questions were also used as interview questions where questionnaire was not applicable. The questionnaires were validated using results of the piloting and reliability calculation. A number of section heads in the purchasing department from the organization were used as targeted population. These were from Kenafric Industries Ltd (ki). The data was presented and analyzed using frequencies and percentages where the findings were analyzed immediately. The following are some of the findings:- }. It was found out that the organization, Kenafric Industries Ltd- Nairobi, Kenya had purchasing department which is placed in a strategic and tactical level. This enabled them in easy implementation of purchaser-supplier relationship. 2. It was also established that the organization use financial strength, past performance, equipment capacity, pricing system and management strength in selecting suppliers to contract with. This enabled them to select the best supplier. 3. It was also found out that the organization is using the following measurement in evaluating the supplier performance; quality performance, delivery performance, pricing policy and quantity performance. This enabled them to realize the contribution of purchaser-supplier relationship to those areas of purchasing functions. 4. The research established that purchaser-supplier relationship contributes to purchasing department performance through the following indicators: accurate specification of requirement, high quality of incoming raw materials, profit leverage through economical pricing and prompt deliveries and reduction of lead time.
