THE ROLE OF BUYER-SUPPLIERS RELATIONSHIP ON SUPPLY CHAIN PERFORMANCE IN MANUFACTURING FIRMS:

Abstract

The study assessed the role of buyer supplier relationship on supply chain performance in manufacturing firms a case of TEMDO in Arusha. The study objectives were to examine the role of communication, commitment and trust to supply chain performance in TEMDO Arusha. This research adopted descriptive research design and a mixed research approach where by both quantitative and qualitative were employed. Population consisted of TEMDO employees and suppliers whereby a total sample of 36 respondents were used. Both primary and secondary data were used to gather information from the respondents. Quantitative data were analyzed using descriptive statistics such as frequencies, percentages, mean and standard deviation. Qualitative data were analyzed using content analysis. The study findings concluded that communication plays a big role in the supply chain performance in TEMDO Arusha. This was witnessed through open sharing of information, willingness to share information as beneficial to the firm, communication of unforeseen challenges and exchange of information frequently. In the second objective, the study concluded that commitment plays a big in the supply chain performance in TEMDO Arusha. This was witnessed through suppliers delivering high quality products on time, relationship with major suppliers being very important, relationship deserving firm's maximum attention and viewing relationship as long term partnership. In the last objective, the study concluded that trust plays a big role in the supply chain performance in TEMDO Arusha. This was witnessed through high quality products and services, suppliers keeping firm's best interests in mind, cost sharing in exploration of new ideas and information and knowledge sharing. It is recommended that, the firm (TEMDO) should continue having good relationship with the supplier to enhance efficiency. The firm also should ensure that they have competent supply chain staffs who focus on ensuring buyer supplier relationships are met. Effective buyer supplier relationship will in turn ensure the firm runs smoothly since the supplier is able to supply goods early in advance thus limiting delay and enabling timely inspection of the goods hence ensuring high quality. High quality goods will lead to growth of the firm, customer satisfaction and employee morale since the employees are motivated to work towards achieving firm’s goals.