Abstract:
This paper presents a case study employing both qualitative and quantitative study of role of
supplier development in procurement effectiveness from the buyer perspective. Specifically,
it seeks to investigate the role of supplier development in procurement effectiveness in terms
of first time quality, delivery and order cycle time, cost and technology. This paper examines
the linkages between supplier understanding of goals, presence of buyer coordinator at the
suppliers’ location, supplier participation and information exchange and the effectiveness of
procurement function at the National Cereal and Produce Board.
It revealed that, information exchange, supplier participation, supplier understanding of the
buyer’s goals and buyer coordinator presence influenced procurement effectiveness. However
the extent of influence varied among the variables. Both supplier’s participation and buyer
coordinator’s presence influenced procurement effectiveness greatly and information
exchange and suppliers understanding of goal influenced procurement effectiveness to a
lesser extent. Regression analysis among the variables indicated that supplier participation
was the most significant variable, followed by buyer coordinator presence, information
exchange and understanding of goals.
It was therefore recommended that, in order to enhance the procurement effectiveness,
enhanced participation of the supplier in development of specifications be emphasized and
implemented, buyer constantly monitor the process execution of contract terms from first
time to eradicate any quality and delay problems as early as possible. There is also need to
enhance proper communication mechanisms probably through application of information
communication and technology. Other supplier development methods that may enhance
procurement effectiveness are training, promise of rewards, creation of competition, ethics
and integrity which can also form part of future research.
