An assessment of the impact of the supplier and buyer relationship on production performance in an organisation: A Case Study of Ufudu Zambia Limited.

Abstract

This research endeavoured to evaluate the impact of the supplier and buyer relationship on production performance in an organization. This study’s main theoretical concept was the transaction cost theory, which stipulates that the optimal organizational structure is one that maximizes economic efficiency by minimizing exchange costs amongst business players. For buyer- supplier relationship to be sound, there is a need to ensure that there is clear and open communication which is very essential in fostering a strong supplier-buyer relationship, both parties should establish effective lines of communication and ensure that expectations and requirements are clearly communicated. Generally, organizations must endeavor to establish good relationship with business stakeholders and it is that relationship which will see many company objectives achieved. Descriptive research design composed of both qualitative and quantitative approaches was used. A sample size of 100 respondents, made up of Ufudu employees and suppliers was purposively selected, 50% of 200 approximated individual staff and suppliers all together was used. According to this survey, Ufudu was working with suppliers to foster innovation and ongoing development. However, some participants expressed dissatisfaction with the degree of cooperation being encouraged; arguing that more needed to be done by both Ufudu and suppliers to improve buyer-supplier relations. It was determined by some respondents that Ufudu faces difficulties in putting the buyer-supplier relationship concept into practice. They stated that problems occasionally arise that impact the goals, trust, and communication between Ufudu and suppliers, which in turn makes the concept difficult to implement and negatively impacts Ufudu’s production performance. It is therefore recommended that Ufudu must work around promoting quarterly relationship assessments and evaluations, and ensure to share experiences surrounding issues of delayed supply of raw materials to ensure that suppliers make an adjustment accordingly, address communication and ensure goals are shared and that every side recognize the goals influencing operations in a given company, this will help each stakeholder find a better way of playing their role without any delays and without affecting production performance of Ufudu.