Importance For Creation And Development Of Good Supplier Relationship In An Organization

(A Case Study Of Eastern Breweries Awo-Omamma, Imo State)

5 Chapters
|
75 Pages
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8,701 Words
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Establishing and nurturing strong supplier relationships is fundamental for the successful creation and development of an organization. A robust supplier relationship goes beyond mere transactional exchanges; it embodies a symbiotic partnership where both parties mutually benefit. Effective collaboration with suppliers enhances operational efficiency, ensures a steady supply chain, and promotes innovation. The foundation of such relationships lies in trust, transparency, and open communication. By fostering a collaborative environment, organizations can adapt swiftly to market changes, mitigate risks, and capitalize on emerging opportunities. This strategic approach to supplier relationships not only optimizes costs but also facilitates the exchange of valuable insights and expertise. Consequently, organizations can enhance their competitiveness, foster resilience, and navigate the dynamic business landscape with agility. The cultivation of a positive and enduring supplier relationship emerges as an indispensable element in the intricate tapestry of organizational success.

ABSTRACT

This is a research study on the importance for creating and development of good supplier relationship in an organization. Which is part of the purchasing management function.
The research study is written to analyze critically the factors affecting the establishment of supplier relationship.
The purpose of this study is to investigate the quality of relationship between the company and its suppliers and emphasize the importance for the creation and development of a mutually advantages and continued supplier relationship.
It is also intended to make useful suggest and recommendation that might help to improve relationship in this study.
This project begins with an importance for the subject matter center on importance for the creation and development of good supplier relationship in am organization. With a case study of Eastern Breweries Awo-Omamma Imo State. Following the introduction in chapter two where little of some writers and authors as it concern supplier relations were reviewed adopted in undertaking the study results of investigation conduced are presented and analyzed in chapter four under the heading finding.
Concluding the work in chapter five, the researcher
summarized her work and mad some recommendations, based on this finding the study was rounded by setting out bibliography and appendix at the end.

TABLE OF CONTENT

Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content

Chapter One
1.0 Introduction
1.1 background of the study
1.2 Statement of problems
1.3 Objectives of the study
1.4 research questions
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of the study
1.8 Definition of terms

Chapter Two
2.0 Review literature
2.1 Introduction
2.2 establishment good business relationship
2.3 selecting source of supply
2.4 factors in suppliers selection
2.5 Source techniques and information
2.6 selection procedures and suppliers information
2.7 Suppliers evaluation factors
2.8 Suppliers development
2.9 The importance for efficient and effective communication programme between the buyer and the suppliers relations
2.10 Suppliers relation

Chapter Three
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Sources of data
3.4 Population and sampling
3.5 Data collection techniques
3.6 Method of data analysis

Chapter Four
4.0 presentation and analysis of data
4.1 Introduction
4.2 Presentation of data
4.3 Analysis of data
4.4 Interpretation of result

Chapter Five
5.0 Summary, conclusion and recommendations
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
References
Appendix

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In selecting sources of supply, purchasing makes decisions that influence not only the firm economic success, but the live hood of the suppliers and the efficiency of the entire economy. The purchasing decision directly influences the financial situation of the supplying from and ultimately the economic welfare of employees and their families. Sourcing in finding suppliers who are willing and able to provide consistently, quality, service, (delivery) at a competitive price.
We can not be taking about price and other things without source, in some cases, an extensive search, may be required to find one satisfcotroy suppliers or even develop on source where more has previously been sourcing therefore many comprise the identification or development of suitable sources of supply, systematic investigation and comparison of such sources, the sources decision and a planting continuous relationship.
Good suppliers is one who is at all time honest and fair in his dealing with their customers his own employees and himself, who has adequate plant facilities, and so to be able to provide materials which meet the purchasing specification the quantities required and at the time promised, whose financial position is sound, whose prices are reasons able both, to the buyer and to himself, whose management policies are progressive who is an alert to the need for continued.

1.2 STATEMENT OF PROBLEM
For sometime new, evidence have shown that the company is facing some problems like
1) There is no cordial relationship between the buyer and the supplier.
2) The company has not be able to meet increasing demand of their customers in term in terms of (project)
3) The company need to look out the factors affecting the establishment of good buyer supplier relations.
4) The organizational structure of the company is not examined.
5) The company need to inspect any product supplied to them to known the ones to accept and to reject.

1.3 OBJECTIVE OF THE STUDY
The aim of this study is to look at the following problems like:
1) To investigate the relationship of the reason for the non-cordially
2) To known the reasons why the company has not been able to meet increasing demand of their customers in terms of product.
3) To take a critical look at the factors affecting the establishment of good buyer/supplier relationship.
4) To examine the organization structure
5) To inspect the products been supplied properly to know when to accept and when to reject.

1.6 RESEARCH QUESTIONS
In an attempt to find solution to the problem of creation and development of good suppliers relationship in a competitive market the researcher sought answers to the following questions:-
1) How is your relationship with your suppliers?
2) Has there been an accession where you visit your suppliers plant of offer practical help in production of your product.
3) Do you receive help from your suppliers in relation to the acquisition of goods and services.
4) What sourcing technique does your company operate?
5) Does the company rejects the suppliers product for a reason of sub-standard?

1.6 SCOPE OF THE STUDY
Creation and development of good suppliers relationship in an organization research is an important and have vast area of study, more so, it is carried out by a lot of manufacturing firms in order to protect and be of good supplier to other organization.
Furthermore, this research work will concentrate more on getting supplies who will produce the things that the purchasers wants to they delivery schedule required by providing technical assistance and advance focusing on various department like store department production department. Since the study is all about good suppliers relationship that is, getting all the items that the company wants at the scheduled time.

1.7 LIMITATION OF THE STUDY
Limitation of the study is the element of short comings one often encounter when trying to get necessary information and materials for successful completion of any research wotk. The study deals with the importance for creation and development of good supplier relationship in an organization with case study of Eastern Breweries Awo-Omamma Imo State.
In the content of this research therefore, the following limitation or problem were encountered.
Time Constraint: The limit the was allowed for the completion of this particular research work to be carried out on his particular topic interest considering the length and depth of activities involved in the topic.
Organizational Bureaucratic Red Tape: the effort to collect all the needed data information from the management and staff of Eastern Breweries Awo-Omamma Imo State was not easy because of the official protocols and organizational bureaucracy.
The inability of the states the staff who would provide the information necessary for the study.
Also, some customers and dealer, who out of fear or mere ignorance refused to provide answer to certain relevant question on the questionnaire administered to them.

1.8 DEFINITION OF TERMS
For better understanding of the works, the following definition were presented so that the reader might gain more insight into the meaning of term as the were used in the study.
1) Sourcing: Find supplier who ever willing and able to provide consistently quality, service, (delivery) at a competitive price.
2) Best Source: Making a choice from a member of equally eligible sources.
3) Good Supplier: One who is at all time honest and fair in his dealing with the customers, in his own employees and himself, who has adequate plan facilities and known how so as, to be able to provide materials which meet the purchaser specification in the quantities required and at the time promised.
4) Development of a Good Supplier relationship: A planned process of getting supplier who will produce the things the purchaser want, to the purchased quality standards in the quantities and the delivery schedule required, by providing technical assistances and advised.
5) Vendor Rating: The term vendor rating is some time used for the systematic assessment of actual performance by suppliers.
6) Specification: It is a definitive description of what is wanted, also a description any object, materials or process in sufficient detail to enable its manufacture and further identical reproduction.
7) Standardization: Defined as agreement on definite size, design quality and the like
8) Quality: The totality of features and characteristics of a product or a services that bears on the ability to satisfy a started or implied needs.
9) Night Quality: It refers to the value or amount or materials the can be most economically purchased at a particular time.
10) Negotiation: It is a conferring discussing or bargaining to reach agreement in business transaction.

 

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Importance For Creation And Development Of Good Supplier Relationship In An Organization:

Creating and developing good supplier relationships is crucial for the success and sustainability of an organization. These relationships can have a significant impact on various aspects of the business, including cost management, product quality, innovation, and overall competitiveness. Here are some key reasons why building strong supplier relationships is important for an organization:

Cost Efficiency: Strong supplier relationships can lead to cost savings through negotiation, bulk purchasing, and favorable terms. Suppliers may offer discounts or better pricing to organizations they have a good relationship with, ultimately reducing procurement costs.

Quality Assurance: When you have a strong relationship with your suppliers, they are more likely to prioritize your business. This can result in better quality control, consistent product quality, and fewer defects or issues with the goods and services you receive.

Reliability and Consistency: Trustworthy suppliers are essential for maintaining consistent production schedules and ensuring that your organization can meet customer demand on time. Strong supplier relationships can lead to reliable and on-time deliveries.

Innovation and Collaboration: Suppliers can be a valuable source of innovation and new ideas. A close relationship with suppliers can encourage collaboration on product development, process improvements, and cost-saving initiatives.

Flexibility and Adaptability: During unexpected events or changes in demand, strong supplier relationships can lead to greater flexibility. Suppliers who are invested in your success are more likely to work with you to find solutions and accommodate changes quickly.

Risk Mitigation: By maintaining good relationships with a diverse group of suppliers, an organization can reduce its exposure to supply chain risks. This includes risks related to disruptions, shortages, or geopolitical issues affecting the supply chain.

Long-Term Partnerships: Establishing long-term partnerships with suppliers can provide stability and predictability in the supply chain. It can also reduce the need for constant supplier sourcing and onboarding, saving time and resources.

Cost of Quality: Poor supplier relationships can lead to higher costs of quality, including inspections, rework, and customer complaints. Strong relationships can help prevent quality issues from arising in the first place.

Ethical and Sustainable Sourcing: Building ethical and sustainable practices into your supply chain often requires close collaboration with suppliers. Strong relationships can facilitate transparency and adherence to ethical and environmental standards.

Competitive Advantage: Organizations with strong supplier relationships may gain a competitive advantage in the marketplace. Suppliers may offer exclusive products, preferential terms, or faster access to new technologies or materials.

Customer Satisfaction: Reliable and high-quality products or services from trusted suppliers contribute to customer satisfaction. Happy customers are more likely to remain loyal and recommend your organization to others.

Cost of Change: Changing suppliers can be costly and disruptive. Strong relationships reduce the likelihood of needing to switch suppliers frequently, saving both time and money.

In conclusion, the creation and development of good supplier relationships are vital for an organization’s success and sustainability. These relationships can yield numerous benefits, ranging from cost savings and quality assurance to innovation and risk mitigation. Organizations that invest in building strong supplier relationships are better positioned to adapt to challenges, seize opportunities, and thrive in a competitive business environment.