Supplier development and operational efficiency a case study of Nile breweries

Abstract

The study focused on examining the relationship between Supplier Development and Operational efficiency a Case Study of Nile Breweries Ltd". The specific objectives of the study were to: examine the effect of financial support on operational efficiency of nile Breweries Limited. determine the extent to which training influences operational efficiency of Nile Breweries Limited and to assess the effect of supplier Performance evaluation on operational efficiency of nile Breweries Limited. The researcher used a case study design involving both qualitative and quantitative methods to collect data from respondents. Data was analysed using SPSS version 21 where findings were presented in both descriptive and inferential analysis format. Descriptive analysis was presented using mean and standard deviation while inferential analysis utilized Pearson correlation coefficient to establish the relationships that exist between the independent and dependent variable. The findings of the study suggest a significant relationship between supplier development and operational efficiency such as without supplier producing desired raw materials as a major locally sourcing developed initiative, operational success of nile Breweries Ltd would be compromised. The result presented in table 11 show that the standardised beta coefficient for the interaction between financial support and operations efficiency of BL is positive and significant (beta =.320; r-4. I 52. p=.000). The direct effects of training and supplier performance evaluation on operations efficiency of BL are positive and significant and the beta values arc 0.495 (t=6.836, p= .000) and 0.295 (r-3.824. p=.000), respectively. Mentioned interaction explained 24.5% of the variance of the operational efficiency score. Developed suppliers were expected to be effective. reliable and dependable in providing inputs to BL while the benefits of operational efficiency were centred on significant cost saving. increased productivity and improved quality control, strong competitive advantage, and timely services within the production department of NBL. strategic material sourcing entails developing sourcing strategy and that it involved improving and re-evaluating the farmers ' activities through local enterprise development initiative. The recommendations are that, Nile Breweries should undertake frequent supplier visits for adequate information sharing, evaluation of needs that necessitate performance evaluation for adequate re-investment of finances as well as capital. Buyer firms should develop. implement. review policies implemented by suppliers to attain high and increased supplier performance in the businesses they are operating regardless of their scope of operation. or the products and services that they supply to their buyers. With emphasis of on maintaining a good supplier- buyer relationship, the Buyer-supplier collaboration should be used to aid implementation of strategics such as setting key performance indicators, understanding their long term objectives and goals and several others so as to attain their business goals. Further, the study recommended that alternative strategies should be formulated to facilitate attempts by manufacturing companies to promote their buyer supplier relationships with regard to enhanced operational performance.