SUPPLIER RELATIONSHIP MANAGEMENT AND OPERATIONAL PERFORMANCE OF SUGAR MANUFACTURING ORGANIZATIONS: A CASE STUDY OI~’ KAKIRA SUGAR WORKS LIMITED, JINJA UGANDA

ABSTRACT

In an increasing competitive marketplace, firms are seeking new methods or enhancing competitive advantage and therefore, purchasing is becoming a strategic function and a key factor

in competitive positioning. Supplier Relationship Management (SRM) plays an important role in

enhancing organizational performance through reduction of costs and the optimization of

performance in industrial enterprises. This study therefore sought to assess the effect of supplier

relationship management on operational performance of Kakira Sugar Works Limited, Jinja,

Uganda. The study worked towards attaining the following objectives; To determine the effect of

supplier collaboration in product development on operational performance of Kakira sugar Works

Limited, Jinja Uganda. To establish the effect of information sharing on operational performance

of Kakira Sugar Works Limited and to determine the effect of trust-based relationship on

operational performance of Kakira Sugar Works Limited. Three theories, namely the social capital

theory, the theory of constraints, and the commitment trust theory, anchored this study. The

research absorbed a descriptive research design. The study’s target population consisted of all the

employees of the 13 currently sugarcane plantation Estates, each department has its suppliers who

supply according to their demand. These include: Kamuli sugarcane plantation, Mayuge sugarcane

plantation Estate, Jinja — Iganga Highway sugarcane plantation Estate~ Magamaga sugarcane

plantation Estate, Musita sugarcane p1 antation Estate.

Primary data was collected for analysis using questionnaires as instruments of collecting the data.

Analysis of the data was conducted through SPSS and the findings presented using frequency

tables, charts and graphs. The research established that trust-based relationships, information

sharing and supplier collaboration in NPD positively impact operational efficiency in Kakira Sugar

Works Limited, Jinja, Uganda. It was also found that most of the operations within KSW are based

on trust, In addition, the study concluded that the sector is not highly efficient in managing all its

operational undertakings. The researcher recommends that the sugarcane plantation Estates should

ensure that an effective supplier buyer information relationship structure is established, encourage

supplier involvement in product development and operational systems within the Company should

be made reliable for the firms to attain operational excellence.