Supplier Development On Organisational Performance: A Case of Century Bottling Company (Coca Cola)

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF FIGURE

TABLE OF CONTENTS

ABSTRACT

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background to the study

1.2 Statement of the Problem 2

1.3 General Objective 2

1.3.1 Specific Objective

1.4 Research questions 3

[.5 Scope of the Study 3

[.5.1 Content Scope 3

.5.2 Geographical Scope 3

.5.3 Time Scope 4

.6 Significances of the Study 4

.7 Operational Definition 4

.8 Conceptual frame work 5

VI I

CHAPTER TWO .6

LITERATURE REVIEW 6

2.0 Introduction 6

2.1 Key concepts 6

2.1 .1 Supplier development 6

2.1.2 Organizational performance 7

2.2 Supplier development programs in organizations 7

2.2.1 Supplier Incentives 8

2.2.2 Supplier Partnership 8

2.2.3 Supplier Evaluation 10

2.2.4 Buyer-Supplier Communication 10

2.2.5 Supplier Management Support 11

2.2.6 Supplier Capabilities 12

2.3 Challenges to supplier development 13

2.3.1 Lack of trust and social relations 13

2.3.2 Absence ofmanagement buy-in 13

2.3.3 Lack of Commitment 13

2.3.4 Insecurity of information 13

Z.3.5 Limited buyer- supplier interface 14

~.3.6 Power imbalance 14

~.4 Relationship between supplier and organization performance 14

~.4. 1 Reliability of delivery 15

.4.2 Quality improvement 1 s

.4.3 Manufacturing flexibility 15

.4.4 Achieves sustainability 16

.4.5 Reduced costs 16

.4.6 Quick introduction of new products 16

VI I

2.5 Related Studies 17

2.6 Summary of Literature Review 18

CHAPTER THREE 19

RESEARCH METHODOLOGY 19

3.0 Introduction 19

3.1 Research Design 19

3.2StudyArea 19

3.3 Study Population 19

3.4 Sample Size and Techniques 19

3.4.1 Sample Size 19

3.5 Sampling Technique 20

3.5.1 Random Sampling Technique 20

3.5.2 Purposive Sampling technique 20

3.6 Data collection methods and instruments 20

3.6.1 Questionnaires 21

3.6.2 Interview Guide 21

3.7 Data sources 21

3.7.1 Primary Data 21

3.7.2 Secondary Data 21

3.8 Reliability and Validity 22

.8.l Reliability of Data 22

L8.2 Validity of Data 22

.9 Data Analysis 22

.10 Ethical Considerations 22

.11 Limitations to the Study 23

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CHAPTER FOUR .24

DATA PRESENTATION ANALYSIS AND INTERPRETATION OF FINDINGS ...... 24

4.0 Introduction 24

4.1 Bio Data of the Respondents 24

4.1.1 Respondents by Gender 24

4.1.2 Level ofEducation 25

4.1.3 Respondents by Education Level 25

4.1.4 Respondents by Duration 25

4.1.5 Position of Respondents 26

4.3 supplier development programs practiced at century bottling company 26

4.4 Challenges to supplier development programs at century bottling company 28

4.5 Relationship between supplier development and performance of Century Bottling

Company 29

4.5.1 Correlation analysis 30

4.5.2 Regression Analysis 30

CHAPTER FIVE 33

SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS 33

5.0 Introduction 33

5.1 Summary of Findings 33

5.1.1 Supplier development programs and organizational performance 33

5.1.2 Challenges to supplier development programs at century bottling company 35

~. 1.3 Relationship between supplier development and organizations 35

;.2 Conclusion 35

.3 Recommendations 36

.4 Areas for Further Study 37

ABSTRACT This study sought to establish the effects of supplier development on organizational performance. The target population of the study was century bottling company while the study population was the management staff in this firm. A sample size of 5 of the respondents was targeted in each department contributing to 30 respondents. Quantitative data was coded and entered into Statistical Packages for Social Scientists Version 21 and analyzed using descriptive statistics. The study established that the company considered supplier development as a strategy for organization development. The study further established that supplier development is incapacitated by lack of top management support, insecurity of information among others . The study further established the relationship between supplier development and organizational performance. The study concluded that supplier development helps to improve performance in the organizations to great extent. Based on the findings the study recommends that organizations should select their suppliers carefully and evaluate them regularly in order to sustain effective and reliable sources of supplies. The study also recommends that the organizations should adopt an open and frequent communication between their personnel and their suppliers so as to increase both parties understanding and encourage conflict resolution between both parties.