Project Materials

THE IMPORTANCE FOR CREATION AND DEVELOPMENT OF GOOD SUPPLER RELATIONSHIP IN A COMPETITIVE MARKET

ABSTRACT

This is a research study on the necessity of establishing and developing solid supplier relationships in a competitive market. Which is a component of the purchasing management function. The research study is written to critically analyse the aspects that influence the establishment of supplier relationships. The study’s goal is to look at the quality of the company’s relationships with its suppliers, emphasising the need of ensuring and developing a mutually beneficial and long-term supplier relationship. It is also meant to provide beneficial suggestions and recommendations that may help to improve relationships in this industry. This project begins with an introduction, and the topic content focusses on the need of creating and developing solid supply relationships in a competitive market. A case study on Aba Textile Mills Limited, Aba. Following the introduction in chapter two, where literature of several writers and authors concerning supplier connections were read, adopted in undertaking the study. The findings of the investigation are given and analysed in the chapter under the heading Finding. In chapter five, the researcher summarised her work and made some recommendations; based on these findings, the study was completed by including a bibliography and an appendix at the conclusion.

Chapter one

INTRODUCTION

1.1 Background of the Study

When picking sources of supply, purchasing makes decisions that affect not only the firm’s economic success, but also the lives of the suppliers and the overall efficiency of the economy. The purchase decision has a direct impact on the financial status of the supplier and, eventually, the economic well-being of employees and their families.

Sourcing is the process of identifying suppliers who are willing and capable of continuously providing high-quality service (delivery) at a competitive price.

We cannot discuss price and other topics without a source. In some cases, an extensive search may be required to find a single satisfactory supplier or to develop a source where none had previously been sourced.

This may include the identification or development of suitable sources of supply, systematic investigation and comparison of such sources, source selection, and a plan for a continuous relationship.

A good supplier is one who is always honest and fair in his dealings with his customers, his own employees, and himself, who has adequate plant facilities to be able to provide materials that meet the purchaser’s specifications in the quantities required and at the time promised, whose financial position is sound

whose prices are reasonable both to the buyer and to himself, whose management policies are progressive, and who is aware of the need for continued.

Improvement in both his products and production processes, whose ethical behaviour is sound, and who understands that, in the end, his own interests are best served when he serves his customers well.

1.2 Statement of The Problem

For some time now, evidence has suggested that the company is experiencing challenges such as.

1. There is no good relationship between the buyer and the suppliers.

2. The corporation has been unable to meet the increased demand of its clients in terms of (product).

3. The organisation should consider the variables that influence the development of positive buyer/supplier relationships.

4. The organisational structure of the corporation is not investigated.

5. The corporation must inspect every products offered to them to determine which ones to accept and which to reject.