E-procurement, buyer-supplier collaboration and supply chain performance in food and beverage processing companies in Kampala
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Date
2021-08-03
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Makerere University Business School
Abstract
Following evidence of poor supply chain performance in food and beverage processing companies in Kampala, this study was initiated to examine the relationship between e- procurement, buyer-supplier collaboration and supply chain performance in food and beverage processing companies in Kampala. The objectives included; to establish the relationship between e-procurement and supply chain performance, e-procurement and buyer-supplier collaboration, buyer supplier collaboration and supply chain performance and to explore the mediating role of buyer-supplier collaboration in the relationship between e-procurement and supply chain performance in food and beverage processing companies in Kampala. The study used a cross sectional research design following a quantitative approach. The units of analysis were food and beverage processing companies in Kampala. The units of inquiry were procurement personnel in the procurement/supply chain department from each of the different firms selected The population was 200 food and beverages processing companies in Kampala with a sample size of 132 firms determined basing on Krejcie and Morgan (1970) using simple random sampling to limit bias and ensure representativeness. The study revealed that there was a significant and positive relationship between e- procurement and supply chain performance, there was a significant and positive relationship between e-procurement and buyer supplier collaboration, there was a significant and positive relationship between buyer supplier collaboration and supply chain performance. The regression model indicates that e-procurement and buyer supplier collaboration together predict 55.4% of the variation. The regression model was also found to be well specified, meaning that the model fits the relationship. Of the two variables, buyer- supplier collaboration was the most significant predictor of supply chain performance compared with e-Procurement. Still, buyer-supplier collaboration was revealed to be a significant mediator of the relationship between e-procurement and supply chain performance. The study concludes that harmonizing e-procurement and buyer-supplier collaboration enhances supply chain performance. The research recommends that to improve supply chain performance there is a need for all decisions involving suppliers and buyers at a business to business level must be jointly made, food and beverage companies should bundle together small orders and deliver them as a batch, adequate sharing of non-confidential information between the buyers and sellers to ensure better supply chain performance.
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Keywords
E-procurement, buyer-supplier collaboration, supply chain performance, beverage processing, Kampala
Citation
Sserunjogi, A. (2021). E-procurement, buyer-supplier collaboration and supply chain performance in food and beverage processing companies in Kampala