Supplier development and buyer efficiency in the sugar industry: a case study of sugar and allied industries

Abstract

This study examined the relationship between Supplier development and buyer efficiency at Sugar and Allied Industries (SAIL). The specific objectives of the study were; to determine the relationship between buyer’s financial support and buyer efficiency; to examine the relationship between buyer’s technical support and buyer efficiency; and to examine the relationship between supplier material support and buyer efficiency. The study adopted a case study design and used quantitative data collection approach. Data was collected using questionnaires and a sample of 33 and a total of 32 respondents from both employees of sugar and allied industries and sugarcane out grower’s association was obtained giving a response rate of 97%. The study findings indicated that there is a relationship between financial support and buyer efficiency at R= 0.57. The results also revealed that there is a relationship between Supplier technical support and Buyer efficiency obtained at R= 0.497. The study findings further revealed that there is a positive relationship between supplier material support and buyer efficiency at R= 0.54 correlation coefficient. Considering the study findings on the first objective, the study recommends that SAIL should ensure that the financial support given to the Out growers is in position to meet both the current and future business needs by improving the out grower's performance and capabilities and also that SAIL should continuously strive to align the financial resources with the operations of the out growers so as to gain superior overall performance. Basing on the second objective, it is recommended that there should be technical support in form of training in quality improvement techniques, just in time delivery and other crucial performance areas and lastly the study recommends that Sugar manufacturing companies should compare the out grower's actual performance with the planned performance when awarding material support.