ROLE OF SUPPLIER RELATIONSHIP MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN MANUFACTURING INDUSTRIES
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Date
2024-10-04
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Publisher
Uganda Christian University
Abstract
ABSTRACT
Supplier Relationship Management (SRM) plays a crucial role in reducing costs and enhancing
efficiency in the supply chain. SRM is a business process that provides the framework for
developing and maintaining relationships with suppliers. It has become increasingly important
due to competitive pressures, the need for sustainability, risk management, and achieving cost
efficiency to remain competitive. (Akintoye et al, 2013).
Developing strong relationships with key suppliers can also foster innovation and facilitate the
successful introduction of new products to the market. Significant benefits can be achieved by
improving relationships with suppliers, including better integration of operations and co-creating
value through cross-functional collaboration.
The main objective of this study was to determine the role of Supplier Relationship Management
on supply chain performance at Royikems Industries Limited in Mukono, Uganda. The specific
objectives were to examine the effects of competitive advantage, quality improvement, and lead
time reduction on supply chain performance at Royikems Industries. Data was collected through
questionnaires, Sample techniques, face to face interviews and using a stratified sampling
method, and also the methodology of using the research design, targeted population of 100 and
the sample size of64 respondents at Royikems industries limited.
Descriptive statistics were analysed using SPSS version 22, and multiple regression analysis was employed to assess the role between Supplier Relationship Management (SRM) and supply chain
performance. The study revealed that competitiveness, supplier relationships improved product
quality, and lead time reductions lowered inventory costs. It concluded that the supplier
competitive advantage, supplier quality improvement and supplier lead time had a significant
effect on supply chain performance. The study recommended that Royikems Industries limited
(RIL) collaborate with suppliers to create value in their supply chain processes and maintain a
competitive edge by ensuring increased efficiency, good communication, cost reduction and
transparency and goal achievement in the manufacturing mattresses industry.