Supplier Relationship Management, Inventory Management, and Operational Performance of Plastics Manufacturing Companies in Uganda.
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Date
2025-02-21
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Makerere University Business School
Abstract
The study examined the relationship between supplier relationship management (SRM), inventory management, and operational performance in Uganda’s plastics manufacturing sector. Specifically, it assessed the individual and combined effects of SRM and inventory management on operational performance. A resource dependence theory was used. A cross-sectional research design and quantitative approach were employed, with data collected from 72 randomly sampled firms. Analyses were conducted using SPSS software. The findings revealed a significant positive relationship between SRM and operational performance, indicating that strong supplier relationships enhance performance. Similarly, inventory management was positively correlated with operational performance, suggesting that effective inventory practices contribute to better outcomes. However, the combined effect of SRM and inventory management on operational performance, while significant, was modest, highlighting the complexity of their interaction in practical settings. The study concluded that SRM had a stronger impact on operational performance than inventory management. Trust, communication, and joint decision-making with suppliers emerged as key contributors to improved outcomes. Firms that prioritize strong supplier relationships are likely to achieve better performance. Notably, inventory management showed no significant independent effect on operational performance. The study recommends procurement managers focus on fostering long-term supplier relationships, while policymakers should promote collaborative supply chain policies and encourage investment in technology to strengthen these partnerships. These measures are critical for improving operational performance in the industry.
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This is a master's thesis.
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Citation
Kisakye, D. A. (2025). Supplier Relationship Management, Inventory Management, and Operational Performance of Plastics Manufacturing Companies in Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.