1Victoria Adzo Bansah & Dr. David Ackah,PhD.2
Email: drdavidackah@gmail.com/victoriab96@gmail.com
1Procurement Officer, Toyota Ghana Company Ltd, &
2President, Institute of Project Management Professionals
Problem Statement
Effective supplier performance has a direct and indirect impact on operational effectiveness, corporate success and long term competitive sustainability. Managing suppliers is a perennial problem for most organizations. The only means by which organizations can achieve success and be responsive to their customers is through effective supply chain systems. This indicates that increasing supplier performance goals and rewarding supplier improvement have been recognized as efficient ways to motivate suppliers to enhance performance. Monczka et al (1993) argued that, buying firms should challenge suppliers to achieve higher levels of performance. Only by aggressively increasing supplier performance expectation can a buying firm expect supplier contributions to increase at an accelerated rate. Lascelles and Dale (1989) also noted that supplier improvement should be recognized by buyers through offering improvement rewards such as future and long term contracts. The success of every organization is embedded in how well its sources of inputs is managed leading to reductions in costs of operation. Despite the fact that ABL is doing well in terms of its financial stability and operational effectiveness, the dynamism of the market, behooves on the company to constantly and continuously pursue and implement very good supplier management programs to increase the company’s fortunes. This study therefore is set out to under study how the company ensures suppliers’ performances are in consonance with corporate objectives, the arrangements put in place to ensure effective outsourcing of materials and services and how can effective supplier performance facilitate customer satisfaction packages being rolled out by ABL. These snags constitute the focus of the study.
