Effects of Supplier Relationship Management on The Timely Delivery and Quality of Products in Commercial Banks in Ethiopia
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Date
2017-07
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Addis Abeba University
Abstract
This study was concerned on Supplier Relationship Management and its effect on timely
delivery and quality of goods and services acquired by commercial Bank’s Operating in
Ethiopia. The main objective of the study is to examine the level of the supplier relationship
management practice of Commercial Banks on their procurement activities and its effect on
the quality and timely delivery of goods and services procured. The study was designed to be
conducted on all the Seventeen Commercial Banks Operating in Ethiopia focusing on their
procurement units. From these populations, a total sample of 385 participant size was
determined using Cochran equation for determining the proportionate sample size then a
stratified random sampling was employed as a sampling technique. Each Bank’s procurement
unit was considered as a stratum. The study has also used both primary and secondary
sources. A Likert scale questionnaire was used to collect the primary data. The collected data
then has been inserted in to a computer program and processed with the help of SPSS version
20.00 software packages and was analyzed using descriptive statistics, Pearson correlation
and multiple regression analysis to detect whether the stated variables are related or not. The
major findings of the study indicate that the level of the supplier relationship management in
most commercial Banks is very low and the major aspects of supplier relationship
management are not yet institutionalized and practiced in the Banking industry in general in
that attributes constituting to supplier relationship management and its manifestations are
missing in their supplier identification, selection, development, measurement and risk
management. The study also reveals that Supplier Relationship Management has a significant
positive relationship with quality and timely delivery of goods and services procured by those
commercial Bank’s studied in this research, however the regression result of supplier
relationship management on timely delivery is not as strong as it has been observed on quality
indicating existence of other factors explaining timely delivery of goods and services for which
suggestion is provided for future researches in this regard. The researcher finally
recommends the need for adapting the concept of supplier relationship management by
identifying and institutionalizing the concepts of SRM in all the procurement process and
thereby improves timely delivery and quality.
Keywords: supplier Relationship Management, Quality, Timely Delivery
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Keywords
Supplier Relationship Management; Quality;Timely Delivery.