The effect of management of suppliers on organization efficiency

Abstract

The main purpose of the study was to assess the effect of management of suppliers on organizational efficiency. The study was guided by the following objectives: To assess how supplier selection affects organizational efficiency; establish how supplies optimization affects organizational efficiency and investigate how supplies automation affects organizational efficiency. The study was carried on using a detailed literature review thereby analyzing what various authors have written about the topic. This was done by looking into different books. Data was collected using a self-administered questionnaire, and face to face interviews. The study was conducted using 70 respondents including the management and employees of Turskys Supermarket. The results from the findings indicated that majority of the respondents were females in and were in the age group between 21 – 30 years and had diplomas. The findings revealed that supplier selection helped to achieve organization’s core processes requirements, to gain efficiency and enhance supply chain cost-effectiveness and gave the best prices in the market. Supplier optimization was also one of the organizations top priorities which increased effectiveness, the supermarket used logistic modeling software as a planning tool, recent distribution procedures. Further supplier automation allowed the organization to operate higher levels of efficiency, save purchasing staff even more time by allowing end-users shop directly, provided a scalable solution that was able to handle a variety of inventory types. More to the above supplier automation improved performance that was as result of leveraging information from the supply and demand chain. Finally, a number of recommendations were suggested such as organizations should take into consideration the need to improve organizational efficiency, reduce waste, overcome supply chain risk, and achieve competitive position through consideration of environmental issues from a competitive view point. The organization management should also consider better supplier selection approaches in order to attain the goals of low cost, consistent high quality, flexibility and quick customer response thus improving the organization performance. In conclusion, supplier selection, supplies optimization and supplies automation are important factors of management of suppliers that can improve the efficiency of organizations by ensuring Productivity, Sales volume and efficiency