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4.1 Introduction
This chapter presents the analysis of data collected from the study. The purpose of the
study was to assess the factors influencing efficient selection of suppliers in Flower
farms.
4.2 Presentation of Findings
A total of 15 questionnaires were issued for the research while 12 questionnaires
were filled and returned. From the sampled respondents, 3 Procurement officers, 4
Supervisors and 5 Clerks responded giving which represented 80% response rate.
4.2.1 Response rate
The study sought to determine the response rate at Maridadi Flowers Ltd. The data in
table 4.1 is presented in figure 4.1.
Table 4.1 Response rate
Categories of staff
Sample Size
Response rate
Response rate
Procurement officers
(Percent)
20
Supervisors
27
Clerks
33
Total
15
12
80
26
Response rate
41%
25%
34%
Procurement officers
Supervisors
Clerks
4.2.2 Gender
The study sought to determine the gender distribution of the respondents at Maridadi
Flowers Ltd. The data in table 4.2 is presented in figure 4.2.
Table 4.2 Gender
Category
Male
Female
Total
Source: Author, (2016)
Frequency
8
4
12
27
Percentage
67
33
100
Gender
Female
Ge nde r
M ale
10
20
30
40
50
60
70
80
Percentage %
Frequency
1
5
3
2
1
12
28
Percentage
8
42
25
17
8
100
Age group
Above 50 years
41-50 years
31-40 years
20-30 years
Below 20 years
0
10
15
20
25
30
35
40
45
Percentage %
Frequency
5
4
2
1
12
29
Percentage
42
33
17
8
100
Marital status
Divorced
Separated
Status
M arried
Single
10
15
20
25
30
35
40
45
Percentage %
Frequency
4
2
4
2
12
30
Percentage
33
17
33
17
100
Level of education
Degree
Diploma
Qualification
Cerificate
O-Level
10
15
20
25
30
35
Percentage %
Frequency
4
5
2
1
12
31
Percentage
33
42
17
8
100
Length of service
Above 10 years
6-9 years
Experience
3-5 years
Below 2 years
0
10
15
20
25
30
35
40
45
Percentage %
Frequency
1
3
3
5
12
32
Percentage
8
25
25
42
100
Respondents Designation
Clerk
Supervisor
Officer
Administrator
10
15
20
25
30
35
40
45
Percentage %
Frequency
8
3
1
12
33
Percentage
67
25
8
100
Response
No
Yes
10
20
30
40
50
60
70
80
Percentage %
Frequency
5
3
3
1
12
34
Percentage
42
25
25
8
100
Quality of product
Response
Product price
Distribution process
0
10
15
20
25
30
35
40
45
Percentage %
Frequency
5
4
2
1
12
35
Percentage
42
33
17
8
100
20
15
10
5
0
Great extent
Low extent
Not so sure
Figure 4.10 Extent to which flexibility of supply contract terms influence selection of
suppliers
Table 4.10 and figure 4.10 indicates that when respondents were asked about the extent to
which flexibility of supply contract terms influence selection of suppliers, 42% of the
respondents said to a very great extent, 33% said to a great extent , 17% said to a low
extent while 8% said they are not so sure. Majority of the respondent agreed that
flexibility of supply contract terms influence selection of suppliers to a very great extent.
4.2.11 How does flexibility of supply contract terms influence selection of suppliers?
The study sought to determine how flexibility of supply contract terms influence
selection of suppliers. The data in table 4.11 is presented in figure 4.11.
36
Table 4.11 How does flexibility of supply contract terms influence selection of
suppliers?
Category
Frequency
Percentage
42
17
Operation disruptions
Consumption patterns
Total
Source: Author, (2016)
4
1
12
33
8
100
How doe s fle xibility of contract te rms influe nce s e le ction of s upplie rs ?
Not so sure
Low extent
Re sponse
Great extent
10
20
30
40
50
60
Pe rce ntage %
Figure 4.11 How does flexibility of supply contract terms influence selection of
suppliers?
Table 4.11 and figure 4.11 shows that when respondents were asked how flexibility of
supply contract terms influence selection of suppliers, 42% of the respondents said
manage uncertainties in supply sources, 17% said manage process life cycles, 33% said
operation disruptions while 8% said manage consumption patterns.
37
4.2.12 The organization has factored in flexibility of supply contract terms in its
operations?
The study sought to determine whether the organization has factored in flexibility of
supply contract terms in its operations. The data in table 4.12 is presented in figure 4.12.
Table 4.12 The organization has factored in flexibility of supply contract terms in its
operations
Category
Frequency
Percentage
Strongly agree
42
Agree
25
Strongly disagree
25
Disagree
Total
12
100
The organization has factored in flexibility of supply contract terms in its operations
Disagree
Strongly disagree
Response
Agree
Strongly agree
0
10
15
20
Percentage %
38
25
30
35
40
45
Figure 4.12 The organization has factored in flexibility of supply contract terms in
its operations
Table 4.12 and figure 4.12 shows that when respondents asked whether the organization
has factored in flexibility of supply contract terms in its operations, 42% of the
respondents said they strongly agree, 25% said they agree, 25% said they strongly
disagree while 8% said they disagree. From the findings company consideration on the
ability of the suppliers to offer different varieties of goods due to fluctuations in demand
and supply.
4.2.13 Does your organization have any strategy in enhancing supplier selection?
The study sought to determine whether the organization have any strategy in enhancing
supplier selection. The data in table 4.13 is presented in figure 4.13.
Table 4.13 Does your organization have any strategy in enhancing supplier
selection?
Category
Yes
No
I dont know
Total
Source: Author, (2016)
Frequency
5
3
4
12
Percentage
42
25
33
100
Response
No
Yes
10
15
20
Percentage %
39
25
30
35
40
45
Figure 4.13 Does your organization have any strategy in enhancing supplier
selection?
Table 4.13 and figure 4.13 when respondents asked whether the organization have any
strategy in enhancing supplier selection, 42% of the respondents said Yes while 25% said
No while 33% said they dont know. From the findings majority of the respondents
disagreed that the company has in place strategies in enhancing supplier selection. There
is need to create awareness on the strategies in place.
4.2.14 The organization do face any challenge(s) when executing supplier selection?
The study sought to determine whether the organization do face any challenge(s) when
executing supplier selection. The data in table 4.14 is presented in figure 4.14.
Table 4.14 The organization do face any challenge(s) when executing supplier
selection?
Category
Yes
No
I dont know
Total
Source: Author, (2016)
Frequency
6
4
2
12
Percentage
50
33
17
100
Response
No
Yes
10
20
30
Percentage %
40
40
50
60
Figure 4.14 The organization do face any challenge(s) when executing supplier
selection?
Table 4.14 and figure 4.14 when respondents were asked whether the organization do
face any challenge(s) when executing supplier selection, 65% of the respondents said
Yes, 33% said No while 17% said they dont know.
4.2.15 Extent to which competition affect efficient supplier selection
The study sought to determine the extent to which competition affect efficient supplier
selection. The data in table 4.15 is presented in figure 4.15.
Table 4.15 Extent to which competition affect efficient supplier selection
Category
Frequency
Percentage
50
Great extent
25
Low extent
17
Not so sure
Total
12
100
41
Low extent
Response
Great extent
10
20
30
40
50
60
Percentage %
Frequency
5
3
4
12
42
Percentage
42
25
33
100
No
Response
Yes
10
15
20
25
30
35
40
45
Percentage %
Figure 4.16 Does your organization have any strategy in enhancing supplier
selection?
Table 4.16 and figure 4.16 when respondents asked whether the organization have any
strategy in enhancing supplier selection , 42% of the respondents said Yes 25% said No
while 33% said they dont know.
4.2.16 Does your organization have any strategy in enhancing supplier selection?
The study sought to determine whether the organization have any strategy in enhancing
supplier selection. The data in table 4.16 is presented in figure 4.16.
4.2.17 Technological challenges the organization face in supplier selection
The study sought to determine some of the technological challenges the organization face
in supplier selection. The data in table 4.17 is presented in figure 4.17.
Table 4.17 Technological challenges the organization face in supplier selection
Category
Resistance
to
implement
technology
Limited Resources
Too expensive to implement
Skills shortage
Total
Source: Author, (2016)
Frequency
Percentage
42
3
3
1
12
25
25
8
100
43
Pe rce ntage %
20
15
10
5
0
Resistance to implement technology
Re sponse
Frequency
Percentage
42
Transparency
33
2
1
12
17
8
100
44
Response
Transparency
10
15
20
25
30
35
40
45
Percentage %
required for specified products. The supplier should be able to provide different volumes
of goods as required by the company. Fluctuations in demand and supply which dictates
the amount of raw materials required for production. The supplier should also be able to
supply raw materials within short notice if there is urgency in the use of such raw
materials. This will be highly convenient in ensuring that there are no delays in the
production process. Flexibility therefore plays a major role in selection of a suitable
supplier for raw materials in manufacturing industry.
To leverage its competitive advantages, the company should hire suppliers that have more
focus on all fields in which it decides to compete. Both external uncertainties and internal
resources drive the adoption of supplier selection strategies. The influence of a marketfocused selection on supplier performance is positive and significant, while that of
relationship-focused strategy is negative. Interaction between two types of supplier
selection strategies will improve supplier performance.
46
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter outlines summary of findings answers to research questions, conclusion and
recommendations.
47
2.5.3 To what extent does competition affect efficient supplier selection at Maridadi
Flowers Ltd?
The study established that according to majority of respondent that competition affect
efficient supplier selection to a very great extent. 50% of the respondents said to a very
great extent, 25% said to a great extent , 17% said to a low extent while 8% said they are
not so sure. Majority of the respondents were in agreement that when the process is
competitive the company is likely to attract efficient suppliers who have the ability to
meet the needs of the company.
2.5.4 What is the effect of technology on efficient supplier selection at Maridadi
Flowers Ltd?
The study established that technology enhance efficient supplier selection. 48% of the
respondents said technology enables sharing of information and knowledge, 24% said for
transparency, 19% said it encourages informed and better decisions while 9% said it
brings about efficiency. Majority of the respondents agreed that technology enhances the
sharing of information in the selection process by creating an efficient process.
5.3 Conclusions
The study concludes that the cost is a major factor in selection of suppliers. Companies
opt for suppliers who offer the required goods at reasonable price. The transaction cost,
the expenses incurred in transporting and goods should be minimized to reduce the
overall cost of goods. Costs such as transportation cost, production cost, operating cost
and profit are considered during selection of suppliers.
With respect to flexibility of supply contract terms, the study concludes that companies
consider flexibility during selection of suppliers. Flexibility affects output quality in
selection of suppliers. Introduction of new products and product modification influences
selection of suppliers. Companies consider the ability of the suppliers to offer different
varieties of raw materials required for specified products. The supplier should be able to
provide different volumes of raw materials as required by the company and supply them
within a short notice if there is urgency in the use of such goods.
48
5.4 Recommendations
From the conclusions arrived at, the following recommendations were made:
The study recommends that company should prioritize all critical success factors that
influence the choice of suppliers because acquisition of the right goods and cost incurred
affect overall financial performance of the company.
The study recommends that the management keeps on adopting new supplier selection
approaches since they are particularly critical for the company because of the role they
play in relation to well performance of the whole procurement process.
The process of selecting suppliers should be open and transparent, thorough and detailed
to identify the salient and most important aspects of suppliers. Due to its nature, supplier
selection should be done by experts who are knowledgeable and have expertise to
conduct the exercise professionally. All key departments in the organization should the
best and qualified suppliers are identified and engaged.
The study further recommends that employees and heads of purchasing department in
should undergo continuous training and have access to updated market conditions. This is
in line with the dynamism of the business environment and the need to have appropriate
information for effective and efficient supplier selection decision making.
49
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