Analysis Of Factors Affecting The Relationship Betweeen The Purchaser And Supplier A Case Study Of Samona Products Limited

TABLE OF CONTENT

DECLARATION ............................................................................................. i

APPROVAL .................................................................................................. ii

DEDICATION .............................................................................................. iii

ACKNOWLEDGEMENT .............................................. : .................................. iv

ABSTRACT .................................................................................................. v

LIST OF TABLES ......................................................................................... vi

LIST OF FIGURES ...................................................................................... vii

TABLE OF CONTENTS .......................................................................................... Viii

CHAPTER 1 ........................................................................................... 1

INTRODUCTION .......................................................................................... 1

1.1 Background ........................................................................................... 1

1.2 Relationship between samona and the suppliers ...................................... 1

1.3 Problem statement ................................................................................. 2

1.4 Research objectives ............................................................................... 2

1.4.1 General objective ................................................................................ 2

1.4.2 specific objectives ............................................................................... 2

1.5 Significance of the study ........................................................................ 3

1.6 Scope of the study ................................................................................. 3

1. 7 Limitations of the study .......................................................................... 3

1.8 Conceptual framework ........................................................................... 5

CHAPTER TWO ...................................................................................... 6

2.0 LITERATURE REVIEW ............................................................................ 6

2.1 Introduction .......................................................................................... 6

2.2 The philosophy of purchasing ................................................................. 7

2.3 Supplier management ............................................................................ 7

2.4 Buyer- supplier relationships ................................................................. 10

2.5 Trust in Buyer -Supplier Relationships ................. : ................................. 12

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2.6 Buyer- customer satisfaction ................................................................. 15

2.7 Communication in Buyer-Supplier relationships ...................................... 16

CHAPTER THREE .................................................................................. 17

METHODOLOGY ........................................................................................ 17

3.1 Introduction ........................................................................................ 17

3.2 Area of the study ................................................................................. 17

3.3 Research design ................................................ : ................................. 17

3.4 Study population .................................................................................. 17

3.5 Sample size ......................................................................................... 18

3.6 Data collected ...................................................................................... 18

3.6.1 Research instruments or tools ............................................................ 18

3.7 Procedure of Data collection ................................................................. 20

3. 7 .1 Data analysis .................................................................................... 20

3. 7 .2 Qualitative data analysis .................................................................... 20

3.7.3 Quantitative data analysis .................................................................. 20

3.7.4 Analysis of data ................................................................................ 20

CHAPTER 4 .......................................................................................... 21

PRESENTATION AND INTERPRETATION OF FINDINGS ................................ 21

4.1 introduction ....................................................... ,. ................................ 21

4.2 Current supply arrangements ............................................................... 21

4.2.1 Materials purchased by the company .................................................. 23

4.2.2 Internal customers ( end users) of purchased goods ............................ 24

4.2.3 Nature of contracts between samona products and suppliers ............ 25

4.3 Supply base ......................................................................................... 25

4.3.1 Position of the purchasing function in the organization structure .......... 27

4.3.2 Sourcing policy ................................................................................. 28

4.4 Effect of contractual obligations of purchasers on the purchaser- supplier

relationships .............................................................................................. 29

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4.4.1 Results on the ability of the purchaser to meet contractual obligations. 29

4.4.3 Samona provides clear specifications or prompt orders ........................ 31

4.4.4 Suppliers' perception on the provision of feedback by the purchaser on bids or

quotations ................................................................................................. 32

4.5 Results on the ability of suppliers to meet contractual obligations by the

purchaser .................................................................................................. 33

4.5.1 Ability to provide correct information on supplies availability ................ 34

4.5.2 Purchasers perception on supplier's ability to provide correct information on

product specification .................................................................................. 35

4.5.3 Purchasers perception on suppliers' ability to provide correct information on

pending supplies ....................................................................................... 36

CHAPTER 5 .......................................................................................... 37

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ................................. 37

5.1 Introductions ....................................................................................... 37

5.3 Conclusions ......................................................................................... 39

5. 4 Recommendations .............................................................................. 40

References ........................................................................................... 4 3

APP EN DICES ........................................................................................ 44

Appendix I Time Frame .............................................................................. 45

Appendix II Questionnaire ..........................................................................