The Impact Of Supplier Relationship Management On Performance Of The Organisation. Case Study Of Mukwano Group Of Companies.

TABLE OF CONTENT DECLARATION ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ii APPROVAL .•.•.•.•.•••••.•••••••••••.•••••••••••••••••••••••••••••••••.••••••••••.•••.•.••••••.••••••••••••••••••••••••••.•••• iii DEDICATION •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• iv ACKNOWLEDGEMENT .............••••••••••••••••••••.••••••••••.•.•.••.......................................•.......... v LIST OF TABLES •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ix LIST OF FIGURES •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• xi List of acronyms ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• xii ABSTRACT .....................................•...•..•.••..•........•...•.................................................. xiii CHAPTER ONE: INTRODUCTION ................................................................................. ! 1.0 Introduction ................................................................................................................. 1 1.1 Background .................................................................................................................. 1 1.2 Statement of the problem ............................................................................................. 2 1.3 Purpose of the study ..................................................................................................... 3 1.4 Objectives of the study ................................................................................................. 3 1.5 Research questions ....................................................................................................... 3 1.6 Scope of the study ........................................................................................................ 3 1.6.1 Subject scope .............................................................................................................................. 3 1.6.2 Geographical scope ..................................................................................................................... 3 1.6.3 lime scope .................................................................................................................................. 3 1. 7 Significance of the study ............................................................................................... 4 1.8 Conceptual framework .................................................................................................. 4 CHAPTER TWO: LITERATURE REVIEW ........................................................................ 6 2.0 Introduction ................................................................................................................. 6 2.1 Supplier Relationship Management (SRM) ....................................................................... 6 2.2 Supplier Relationship Management Practices ................................................................... 6 2.3.1 Strategic Material Sourcing (SMS) ............................................................................................. 7 2.3.2 Tailored vendor relationship ....................................................................................................... 7 2.3.3 Performance based logistics (PBL) ............................................................................................ 8 vi 2.5 Relationship between supplier relationship management and a firm's performance .......... 11 2.6 Conclusion ................................................................................................................. 11 CHAPTER THREE: METHODOLOGY ............................................................................ 12 3.0 Introduction ............................................................................................................... 12 3.1 Research design ......................................................................................................... 12 3.2 Study population ........................................................................................................ 12 3.3 Sampling methods ...................................................................................................... 12 3.4 Sample size ................................................................................................................ 13 3.5 Sources of data .......................................................................................................... 13 3.5.1 Primary Data ........................................................................................................... 13 3.5.2 Secondary data ....................................................................................................... 13 3.6 Data collection instruments ......................................................................................... 13 3.7 Data Processing and Analysis ....................................................................................... 13 3.81imitations .................................................................................................................. 14 CHAPTER FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 4.0 Introduction ............................................................................................................... 15 4.1 Demographic Characteristics of Respondents ................................................................ 15 4.2 To establish supplier relationship management practices used by the organization ........... 18 4.3 To establish the performance of the organizations ......................................................... 23 4.4 To assess the relationship between suppliers relationship management and organizational performance .................................................................................................................... 29 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................... 34 5.0 Introduction ............................................................................................................... 34 5.1 Summary of major findings ......................................................................................... 34 5.1.1 To establish supplier relationship management solutions used by the organization .......... 34 5.1.2 To establish the performance of organizations ...................................................................... 35 5.2 Conclusion ................................................................................................................. 35 5.2.1 To establish supplier relationship management solutions used by the organization .......... 36 vii 5.2.2 To establish the performance of organizations ...................................................................... 36 5.2.3 To assess the relationship between suppliers relationship management and organizational performance ........................................................................................................................................ 36 5.3 Recommendations ...................................................................................................... 36 5.4 Areas for Further research ........................................................................................... 37 REFERENCES ..........•.....•••.•••••.•..............................••••••.••.•.•...............................•••.•... 38 Appendices ............................................................................................................... 39 APPENDIX 1: QUESTIONNAIRE ......................................................................................... 39 Appendix 2: Interview guide ............................................................................................. 45 Appendix 3: Time frame or work plan ................................................................................ 46 Appendix 4: Proposed budget for the research dissertation .................................................. 47 viii LIST Of TABlES Table 1: Department of respondents ....................................................................................... lS Table 2: sex of respondents .................••........••........................••................................•...... 16 Figure 2: Sex of respondents .•.••....•........•..•..•.•.•...•........•.•...•....••.•....•...•..•.....•.......••...•....•. 16 Table 3: Age of respondents .•............•.•............••.........•....•..•.....•..•..•......•....................•..... 16 Table 4: Number of years in Mukwano Group of companies ................................................. 17 Table 5: Responses on the services offered by Mukwano Group of companies ....................... 18 Table 6: Responses on whether Mukwano Group of companies Provide all the necessary materials/ services required for the work ........••.....•.•..............•........••........•..•......•.........•.... 18 Table 7: Responses on the Factors where more emphasis is put when identifying suitable supplier ................•....•............................•.......•.............•.................................................. 19 Table 8: Responses on getting the best quality products at the lowest price as the sourcing strategy .•.............................•.•.......•..................••.......•....••......••.......•............................... 19 Table 9: Responses on Particular relationships with your suppliers ..........•............................. 20 Table 10: Relationships engaged in •.........•.......•..........•................•.......•............................. 20 Table 11: Responses on the Period spent conducting business with suppliers ..•...................•. 21 Table 12: Responses on whether some of your suppliers are located on MUKWANO Group of companies premises ......•......•..................•.•.....•....................•.......•...•............................... 21 Table 13: Responses on whether Mukwano Group of companies Sign contracts with your suppliers ..•......•.........•......•.•....•....•..•...•.....•...•.•...........••.......•.•......•...............•.................. 22 Table 14: Responses on Contracts made with suppliers ....................................................... 22 Table 15: Responses on the Suppliers commitment to the contractual arrangements .............. 22 Table 16: Responses on Mukwano Group of companies' commitment to the contractual arrangements ....•.•...•........•...........................••.........•.•............•.....•••....•.•.......••................. 23 Table 17: Responses on whether there is a lot of work in progress ...•...............•.•.....•........... 23 Table 18: Responses on whether a lot of damages are made at the Mukwano Group of companies ..........•...............•........•............•......•..•..................•......................................... 24 Table 19: Responses on whether more work is ever made than what is ordered for ..•..........•. 25 Table 20: Responses on whether customers do complain about the packaging of printed work from the MUKWANO Group of companies .......................................................•....•.............. 25 Table 21: Staff reluctant when it comes to collecting Supplies from the suppliers ................... 26 Table 22: Responses on whether sometimes suppliers are paid more money than what they are supposed to get ...••......•....•..........•..........•....•••..•.....•....•...........••..............••....•................. 27 ix Table 23: Responses on whether materials used at the Mukwano Group of companies are normally bought expensively .......•........................••..............•••........................••.•.............. 27 Table 24: Responses on whether Group of companies management ever disagrees on who should be the supplier ...........•....••....................••.................•.......................•••...............••. 28 Table 25: Responses on whether Work in progress at the MUKWANO Group of companies is as a result of our suppliers .....................•..•....................................•...................................... 29 Table 26: Responses on whether Responses on the most of the materials got from suppliers are damaged .........•............................................................................................................... 29 Table 27: Responses on whether Suppliers ever send more materials than what is ordered from them ......................................................................•...................•.................................... 30 Table 28: Responses on whether most packaging materials got from suppliers are of poor quality .......................•..................................................................................................... 31 Table 29: Responses on whether Suppliers take a lot of time in delivering what is ordered for by the Mukwano Group of companies ..........•....................•...................•.......................•......... 31 Table 30: Responses on whether suppliers deliver expensive Materials used at the MUKWANO Group of companies .........................•.•....................•........................................................ 32 Table 31: Responses on whether most of the supplies do not fit the required specifications ... 32 X liST OF FIGURES Figure 1: The study conceptual framework ..................................................................... 5 Figure 2: Sex of respondents ..............•...•.................•.....................................•••............... 16 xi list of acronyms PBL- Performance based logistics SRM- supplier relationship management SMSS-strategic Material Sourcing FFP-Generally speaking, Full function points CPFF-commercial paper funding facility SPSS-Statistical Programme for Social Scientist xii

ABSTRACT

The purpose of the study aimed at assessing the impact of implementing supplier relationship management solutions on organizational performance basing on the following objectives; to establish supplier relationship management solutions used by organizations, to establish the performance of organizations that manage supplier relationships, and to assess the relationship between suppliers' relationship management and organizational performance. Both qualitative and quantitative research designs were used. The sample size was randomly selected using the simple random sampling design. And sample size of 40 respondents was considered. Secondary sources of information included textbooks, magazines, pamphlets, research reports, journals, internet and newsletter were used in addition to various company annual reports, and Primary data was collected by the use questionnaires given by the respondents. Besides that After collecting data, it was analyzed in line with the problem, objectives of the research, research questions and other information especially from the literature review, Frequency tables and graphs were worked out basing on the data entered into excel. In these frequency tables and graphs, analysis was done with a corresponding percentage. Findings revealed that Mukwano group of companies does not provide for itself all the necessary materials/ services required for the work, further still materials sourced from suppliers include plates, ink, stationery, exposure services, machines, and colour separation services. MUKWANO Group of companies is committed to the contractual arrangements though there is need to check on bureaucracy which sometimes stagnates and delays decision making Besides that there is a lot of work in progress, a lot of damages are made at the MUKWANO Group of companies, and Suppliers take a lot of time in delivering what is ordered for by the MUKWANO Group of companies, It was recommended that Mukwano Group of companies need to provide for itself with all the necessary materials/ services required for the work, such as, ink, stationery, exposure services, machines, and colour separation services.