Effect Of Supplier Trust on Firm Performance of Nestlé Nigeria Plc, Ogun State

The performance of a company reflects how well it operates in terms of production, profitability, and customer satisfaction. For a large manufacturing firm like Nestlé Nigeria Plc, performance depends heavily on how efficiently its supply chain functions from sourcing raw materials to producing and distributing finished goods. However, in recent years, Nestlé’s Ogun State factory has experienced issues such as delays in raw material delivery, inconsistent product quality, and occasional production slowdowns. The objective of this study was to examine the effect of supplier trust measured through supplier reliability and supplier competence on the firm performance of Nestlé Nigeria Plc in Ogun State. The study adopted a survey research design to gather first-hand information from employees across different departments. The population of the study consisted of 512 staff members of Nestlé Nigeria Plc, as obtained from the Human Resource Department. Since the number was manageable, the study used a census method, meaning all staff were included in the research. Primary data were collected through a structured questionnaire designed on a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 3 software. The results showed that both supplier reliability and supplier competence had a positive and significant effect on firm performance. The study concluded that dependable and capable suppliers contribute greatly to improving Nestlé’s productivity, efficiency, and customer satisfaction. It is therefore recommended that Nestlé Nigeria Plc continue to partner with reliable and competent suppliers, invest in supplier development programs, and strengthen communication to sustain long-term performance growth.