An effective supplier development methodology for enhancing supply chain performance

Over the past years, there has been a growing significance in supply chain management (SCM) as a vehicle through which many companies/firms can reach a competitive advantage. Despite the importance of supply chain within today’s economy, little is known about how SCM mechanisms can contribute to firm performance. The main purpose of this study was to evince the influence of trust on supplier development, knowledge creation and supply chain performance (SCP) in KwaZulu-Natal (KZN) Province, South Africa (SA). It was a cross-sectional study that was conducted with different samples and several variables. This is a quantitative study which used a probability and non-probability approach. The study was conducted using both the simple random technique and convenience sampling. Descriptive analysis was performed using the IBM SPSS 25 software package. A sample size of 495 respondents was used in this study. In total, 310 questionnaires were received from all respondents who participated in this study. Results specified that trust does not have any direct impact on SCP. However, based on the beta coefficient values, trust predicts better knowledge creation than supplier development. The empirical results show that an organisation/firm that has a high level of knowledge creation with its suppliers will yield greater performance within its supply chain (SC). As the supply chain performance enabled process was empirically defined, firms are therefore able to design appropriate collaborative strategies for their SC. Thus, the capability to integrate external knowledge from different sectors could be a major factor in firms’ improvement capacity. This study recommends that the South African Government must provide training for firm owners and easy funding access for SMEs in KZN to be able to confront competition from local and foreign competitors. Furthermore, this study suggests that staff development and training for public and private sector institutions as well as individual career management enhancement initiatives must be implemented. Collaboration with suppliers and other supply chain associates is strongly recommended, which should increase the chance to gain strengths, trust, knowledge creation, information sharing and technological proficiencies.

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A Reflection of Local Supplier Development towards Sustainable Social Supply Chain

KnE Social Sciences ◽

10.18502/kss.v3i22.5084 ◽

2019 ◽

Author(s):

Munira Halili ◽

Yudi Fernando

Keyword(s):

Supply Chain ◽

Supplier Selection ◽

Supplier Management ◽

Business Environment ◽

Local Communities ◽

Supply Chain Performance ◽

Supplier Development ◽

Technological Changes ◽

Good Relationship ◽

Economic Relationship

In today’s business environment, supplier management is increasingly inclined to complexity and uncertainty due to rapid technological changes and globalization. The objective of this study is to review the necessary important of local supplier development towards sustainable social supply chain. Supplier management must be handled systematically, and maintaining a good relationship between manufacturer and supplier is vital. Therefore, it is critical for the supplier in making a well-informed decision. As an alternative, firms should consider developing a local supplier in making sure the availability of fast and reliable supplies to meet global requirement. The criticality is due to supplier selection contributes to overall supply chain performance. This study concludes that developing a local supplier will reduce the increased pressure to develop a direct economic relationship with local communities.

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