Supplier quality management is one of the very many simple concepts that make a lot of sense to any well meaning organization. Unfortunately, implementing the concept is not very simple and over the years, companies have crumbled due to failure to master the best practices in supplier quality management. Practices such as measuring the performance of suppliers, engaging suppliers in quality management systems, supplier audits, supplier development, integration and competitive supplier selection are a great opportunity to improve organizational performance in terms of customer service delivery levels and operational costs reduction. However, it is worth noting that there are numerous challenges encountered in having such practices accepted by all the stakeholders. The purpose of this study was to determine the effect of supplier quality management on organizational performance, covering all the supermarkets in Kakamega town. The study employed a descriptive survey design and the study population was the procurement managers of the supermarkets. Data was collected using structured questionnaires which were administered by the researchers through a drop and pick technique and it was descriptively analyzed. The study also explored the potential integration of supplier quality management practices into an organization’s operations, focussing on the currently available applications. The study recommended that suppliers should maintain reliable records, errors to be identified early, supermarkets to decentralize their management structures, suppliers should conform to specifications and that senior level management should be fully committed especially in supplier development programmes so as to overcome the challenges faced in supplier quality management. Finally, suggestions for further research were given. Key words: Organizational performance, Supplier, Supplier Quality Management