The Impact Of Supplier Relationship Management On Supply Chain Performance In Telecommunication Industry: A Case Of Tigo

ABSTRACT 

Competent and excellent supply chain management has become very important for firms to maintain its competitive power in the market and improve overall organizational performance. This study assessed the extent to which supplier relationship management impacts supply chain performance in a telecommunication industry. Supplier relationship management (SRM) plays a pivotal role in improving operational efficiency in terms of cost reduction, improved quality of products or services and timely delivery of products. Research approaches used in this study are quantitative and qualitative research approaches were employed. A cross-sectional case study research design was adopted, a sample of 90 respondents was obtained. Descriptive statistical analysis was used in analyzing the data through the use of percentages and frequencies and through the use of SPSS tool version 21. The study found that good management of supplier relationship that exists in the company leads to improved quality of products as the products supplied meet customer’s expectations, cost reduction in costs associated with accessing new suppliers, access to new technologies, procurement of new technologies and after sale costs. The study further revealed that for a supplier relationship to be well managed there are techniques that are used to promote good supplier relationships such as two way communication with suppliers, planning for uncertainty, setting appropriate service levels and understanding value of the supply chain. The study also found that supplier relationship lead to short lead times hence operational efficiency. These results implied that by adopting a collaborative relationship with the suppliers, Tigo Telecommunication Company has been able to improve its performance hence strengthening the company’s competitive advantage in the market. This study indicates that practicing supplier relationship management with suppliers contribute to performance of the supply chain and value addition in the supply chain performance.