The study sought to establish the effect of supplier development on procurement performance of manufacturing firms. The study specifically looked at the effect of supplier training on procurement performance of manufacturing firms, the effect of early supplier involvement on procurement performance of manufacturing firms, and the effect of financial support on procurement performance of manufacturing firms.
The study adopted a descriptive cross-section research design and used both qualitative and quantitative research approaches. The target population was 502 employees of UBL where a sample size of 217 respondents was selected using the Krejice and Morgan table. Information was solicited from respondents by use of questionnaires, which were based on a five-point Likert scale and interview guide. Quantitative data analysis presented using descriptive statistics and inferential statistics, whereas content qualitative data was presented using verbatim.
Generally, the findings of the study clearly showed that supplier training significantly affect procurement performance of UBL (adjusted R Square =.564). Findings further revealed that early supplier involvement moderately affects procurement performance of UBL. The results also showed that financial assistance significantly affect procurement performance of UBL). Findings again showed that the supplier training, early supplier involvement, and financial support predicts 74.3% of procurement performance in UBL.
Basing on the findings of the study, it was concluded that there is a significant relationship between supplier training and procurement performance of UBL. Any efforts put into supplier training will significantly improve procurement performance. Early supplier involvement was, however, having moderate relationship with procurement performance, and it was further concluded that there was a significant relationship between financial assistance and procurement performance of manufacturing firms like UBL.
This was attributed to the fact that respondents agreed that providing prompt payment, advance payments, and credit guarantees improves the production and supplying capabilities of suppliers, thus leading to improvement in procurement performance of UBL.
Basing on the conclusion, the research recommended that there is need for the managers in manufacturing firms to periodically organize seminars, workshops, and field days for the company suppliers so that they can easily interface with them.
Table of Contents
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Study objectives
1.3.1 General objective of the study
1.3.2 Specific objectives of the study
1.4 Hypothesis of the Study
1.5 Scope of the Study
1.5.1 Content Scope
1.5.2 Geographical Scope
1.5.3 Time Scope
1.6 Significance of the Study
1.7 Justification of the study
1.8 Definition of Key Terms
1.9 Conceptual Frame work
1.10 Conclusion
2.0 Literature Review
2.1 Theoretical Review
2.1.1 Theory of Constraints (TOC)
2.1.2 Resource Dependence Theory (RDT)
2.2 Overview of the study concepts
2.2.1 Supplier Development
2.2.2 Procurement Performance
2.3 Actual review
2.3.1 Supplier training and procurement performance.
2.3.2 Early supplier involvement (ESI) and procurement performance
2.3.3 Financial assistance and procurement performance
2.3.4 Buyers – Supplier Relationships
2.4. Conclusion and Literature Gap
3.0 Research Methodology
3.1 Research Design
3.2 Area of study
3.3 Study population
3.4 Sampling Procedures
3.4.1 Sample size
3.4.2 Sampling Techniques
3.5 Data sources
3.5.1 Primary sources
3.5.2 Secondary sources
3.6 Data Collection Methods and Instruments
3.6.1 Data Collection Methods
3.6.2 Data Collection Tools/Instruments
3.7 Quality control
3.7.1 Validity
3.7.2 Reliability
3.8 Measurement of variables
3.9 Data Analysis
3.9.1 Quantitative Analysis
3.9.2 Qualitative Analysis
3.10 Ethical consideration
3.11 Limitations of the study
4.0 Presentation, Analysis, and discussion of findings
4.1 Response Rate
4.2 Respondents’ Background Information
4.2.1 Gender
4.2.2 Respondent’s Age
4.2.3 Respondents level of Education
4.2.4 Number of years while working with UBL
4.3 Descriptive statistics
4.3.1 Effects of Supplier Training on procurement performance
4.3.2 Procurement Performance in UBL
4.3.3 Supplier relationship in UBL
4.4 Inferential statistics
4.4.1 Correlation Coefficients
4.4.2 Regression Models
4.4.3 Regression Coefficients
4.4 Conclusion
5.0 Summary, Conclusions, and Recommendations
5.1 Summary of findings
5.1.1 Effects of Supplier Training on Procurement Performance of Manufacturing Firms.
5.1.2Effects of Early Supplier Involvement on Procurement Performance of Manufacturing firms
5.1.3Effects of Financial Assistance on Procurement Performance of Manufacturing Firms
5.2. Conclusions
5.2.1 Supplier Training and Procurement Performance of Manufacturing Firms.
5.2.2 Early supplier involvement and Procurement Performance of Manufacturing Firms.
5.2.3 Financial Assistance and Procurement Performance of Manufacturing Firms.
5.3 Recommendations
5.3.1 Supplier Training on Procurement Performance of Manufacturing Firms.
5.3.2 Early Supplier Involvement on Procurement Performance of Manufacturing Firms.
5.3.3 Financial assistance on Procurement Performance of Manufacturing Firms.
5.4 Areas for further studies
Research Objectives and Themes
This study aims to investigate the impact of supplier development practices—specifically supplier training, early supplier involvement, and financial assistance—on the procurement performance of manufacturing firms in Uganda, using Uganda Breweries Limited (UBL) as a case study. The primary research goal is to determine how these development strategies influence procurement outcomes such as cost savings, supply chain efficiency, and quality.
- The relationship between supplier training programs and procurement performance.
- The influence of early supplier involvement (ESI) on product development and sourcing cycles.
- The impact of financial assistance, such as credit guarantees and advance payments, on supplier stability and performance.
- The role of buyer-supplier relationships as a moderating factor in procurement effectiveness.
Excerpt from the Book
2.1.1 Theory of Constraints (TOC)
The Theory of Constraints (TOC), according to Mabin (1999), is a management and improvement theory that was created by Eliyahu Goldratt and first published in his book The Goal. It is based on the observation that, like a chain with a weak link, there is typically just one feature of any complex system at any given time that is preventing it from accomplishing more of its objective.
The Theory of Constraints has been providing businesses all around the world with astonishingly concrete outcomes since 1985. Huge results were routinely attained, according to Pfeiffer's independent analysis on Theory of Constraints implementations worldwide published in 1995. Pfeiffer, et al., (1995) The concept was first put up by Eliyahu Goldratt as a technique to run businesses more profitably. Existing staff can utilize the Theory of Constraints, a tried-and-true technique, to improve throughput, dependability, and quality while reducing inventory, late deliveries, and overtime. The Theory of Constraints is a decision-making tool used by successful organizations to aid in tactical and strategic decisions for ongoing progress. UBL can use the idea to optimize its procurement performance through supplier development.
For a firm, the current time period can be efficiently addressed using the notion of limitations. Because it considers real-world circumstances, it can only consider immediate repercussions. You must look at the long-term implications of your work on the limits that the theory outlines in order to get around this restriction. If the immediate impact persists the idea may be correct in suggesting a strategy if the short-term effect holds true over a longer time period. You must find alternative restraints that, if eased, would have long-term benefits if the short-term effect is short-lived or results in long-term worsening in other company variables.
Summary of Chapters
1.0 Introduction: Provides an overview of the study, defining key terms and establishing the research rationale regarding supplier development and procurement performance at UBL.
2.0 Literature Review: Examines theoretical frameworks, including the Theory of Constraints and Resource Dependence Theory, alongside existing literature on supplier development strategies and procurement metrics.
3.0 Research Methodology: Details the cross-sectional research design, population sampling techniques (using Krejcie and Morgan), and data collection methods including surveys and interviews.
4.0 Presentation, Analysis, and discussion of findings: Analyzes the gathered field data using descriptive and inferential statistics to evaluate the impact of supplier development variables on organizational procurement performance.
5.0 Summary, Conclusions, and Recommendations: Synthesizes the core findings, offers formal conclusions based on the research objectives, and provides strategic recommendations for manufacturing firm managers.
Keywords
Supplier Development, Procurement Performance, Supplier Training, Early Supplier Involvement, Financial Assistance, Uganda Breweries Limited, Buyer-Supplier Relationships, Manufacturing Firms, Resource Dependence Theory, Theory of Constraints, Supply Chain Management, Cost Savings, Sourcing Cycle Time, Procurement Efficiency, Competitive Advantage
Frequently Asked Questions
What is the core focus of this research?
The research focuses on analyzing the impact of supplier development practices on the procurement performance of manufacturing firms in Uganda, specifically using Uganda Breweries Limited (UBL) as a case study.
What are the primary themes addressed in the work?
The key themes include supplier training strategies, early supplier involvement (ESI), financial assistance provided to suppliers, and how these factors contribute to organizational procurement performance and competitive advantage.
What is the main objective of the study?
The research sought to establish a relationship between supplier development activities (training, ESI, support) and procurement performance indicators, aiming to provide an evidence-based roadmap for enhancing supply chain management.
Which scientific methodology was utilized?
The study employed a descriptive cross-sectional research design, utilizing both quantitative data (from questionnaires based on a Likert scale) and qualitative data (from interviews with senior management).
What topics are covered in the main body?
The main body covers a comprehensive literature review of current theories, detailed methodology for data gathering and analysis, and a presentation and discussion of findings supported by statistical models and informant testimony.
Which keywords characterize this work?
The work is characterized by terms such as Supplier Development, Procurement Performance, Supply Chain Management, and specific practices like financial support and supplier training.
Why was Uganda Breweries Limited (UBL) chosen for this case study?
UBL was chosen as a case study because it is a prominent manufacturing firm in Uganda that has been actively engaging in local supplier development, making it an ideal environment to evaluate the efficacy of these initiatives.
What conclusions did the author reach regarding financial assistance?
The research concluded that financial assistance—such as prompt payment, credit guarantees, and advance payments—is a significant predictor for improving supplier output quality and meeting the firm's procurement goals.
How does early supplier involvement affect procurement?
Early supplier involvement was found to have a positive impact by integrating supplier expertise during the product development cycle, which helps in reducing lead times and fostering long-term collaborative relationships.
- Arbeit zitieren
- Tonny Mugere (Autor:in), 2022, Supplier Development and Procurement Performance of Manufacturing Firms in Uganda, München, GRIN Verlag, https://www.grin.com/document/1320718
