The University of Dodoma

University of Dodoma Institutional Repository http://repository.udom.ac.tz

Business Master Dissertations

2018

The impact of supplier relationship

management on supply chain
performance in telecommunication
industry: a case of tigo

Lutende, Deborah D.
The University of Dodoma

Lutende, D. D. (2018). The impact of supplier relationship management on supply chain

performance in telecommunication industry: a case of tigo. Dodoma: The University of Dodoma.
http://hdl.handle.net/20.500.12661/1373
Downloaded from UDOM Institutional Repository at The University of Dodoma, an open access institutional repository.
 THE IMPACT OF SUPPLIER RELATIONSHIP

MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN

TELECOMMUNICATION INDUSTRY: A CASE OF TIGO

DEBORAH D. LUTENDE

MASTER OF BUSINESS ADMINISTRATION

THE UNIVERSITY OF DODOMA

OCTOBER, 2017
THE IMPACT OF SUPPLIERRELATIONSHIP MANAGEMENT ON

SUPPLY CHAIN PERFORMANCE IN TELECOMMUNICATION

INDUSTRY: A CASE OF TIGO.

BY

DEBORAH D. LUTENDE

A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENTS OF

THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF

BUSINESS ADMINISTRATION AT THE UNIVERSITY OF DODOMA

THE UNIVERSITY OF DODOMA

OCTOBER, 2017
 DECLARATION

AND

COPYRIGHT

I, Deborah D. Lutende, declare that this thesis is my own original work and that it has

not been presented and will not be presented to any other university or institution, for a

similar or any other degree award.

Signature……………………………………………………….

No part of this dissertation may be reproduced, stored in any retrieval system, or

transmitted in any form or by any means without prior written permission of the author or

the University of Dodoma. If transformed for publication in any other format shall be

acknowledged that, this work has been submitted for degree award at the University of

Dodoma.

i
 CERTIFICATION

The undersigned certifies that he has read and hereby recommends for the acceptance by

the University of Dodoma dissertation entitled, “The impact of supplier relationship

management on supply chain performance in telecommunication industry: a case of

TIGO in partial fulfillment of the requirements for award of the Master degree in

Business Administration of the University of Dodoma

………………………………………………

PROF. ADAM MWAKALOBO

Supervisor

Date ……………………….……..

ii
 ACKNOWLEDGEMENT

First and foremost I would like to thank my God heavenly Father for without the strength,

health and power that He gave me I wouldn’t be able to achieve well and excel in my

studies as well as this thesis.

I admit that this research was not an easy one and I would like to that everyone that has

contributed to this achievement in one way or the other. My supervisor, my fellow

students, family and everyone that gave me moral, financial and academic support I really

do appreciate your support.

I would like to express my sincere heartfelt special thanks to my supervisor Prof. Adam

Mwakalobo for providing continuous assistance and guidance that helped me in

conducting this research. He provided me with Courage, simulating, challenging, guidance

or corrections, and discussion that made me feel the impact of his understanding and

proficiency in the research study. Surely, I would have known nothing in research without

his support.

Deep appreciation to my mother Sheila Mdemu for building my academic foundation and

making sure that I follow her steps. I appreciate my husband Noel Elias who has always

been motivating me to work hard and achieve academic excellence.

I would also like to thank all respondents, Tigo Supply chain team and Tigo management

for their support. Mr. Hamisi Daghayu for his support and cooperation in conducting this

study.

Lastly, to whoever that assisted me in one way or the other but names do not appear in this

report, I appreciate your support, thank you all.

iii
 DEDICATION

I dedicate this work to my lovely Mother Sheila Mdemu, my husband Noel Elias, my

lovely son Liam Lembrice Noel and my sister Mwasi Lutende. Your unconditional

support is highly appreciated.

iv
 ABSTRACT

A Competent and an 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.

v
 TABLE OF CONTENTS

DECLARATION AND COPYRIGHT ............................................................................. i

CERTIFICATION ........................................................................................................... ii
ACKNOWLEDGEMENT .............................................................................................. iii
DEDICATION ............................................................................................................... iv
ABSTRACT.................................................................................................................... v
TABLE OF CONTENTS ............................................................................................... vi
LIST OF TABLES ......................................................................................................... ix
LIST OF FIGURES ......................................................................................................... x
LIST OF APPENDICES ................................................................................................ xi
LIST OF ABBREVIATIONS ........................................................................................ xii

CHAPTER ONE............................................................................................................ 1
OVERVIEW OF THE STUDY ....................................................................................... 1
1.1 Introduction ............................................................................................................... 1
1.2 Background of the Study ........................................................................................... 1
1.3 Statement of the Research Problem ............................................................................ 6
1.4 Research Objectives .................................................................................................. 7
1.4.1 General Objective ................................................................................................... 7
1.4.2 Specific Objectives ................................................................................................. 7
1.5 Research Questions ................................................................................................... 8
1.5.1 General question ..................................................................................................... 8
1.5.2 Specific question .................................................................................................... 8
1.6 Significance of the study ............................................................................................ 8

CHAPTER TWO......................................................................................................... 10
LITERATURE REVIEW .............................................................................................. 10
2.1 Introduction ............................................................................................................. 10
2.2 Theoretical Literature Review .................................................................................. 10
2.2.1 Theory of the Study .............................................................................................. 10
2.3 Definition of Key terms ........................................................................................... 10
2.3.1 Supplier ................................................................................................................ 10
2.3.2 Supply Chain ........................................................................................................ 11
2.3.3 Supply chain management .................................................................................... 11

vi
2.3.3.1 Supply chain management metrics ..................................................................... 11
2.3.4 Relationship management ..................................................................................... 11
2.3.5 Supplier relationship management ........................................................................ 12
2.3.6 Impact of Supplier relationship on operational efficiency ...................................... 13
2.3.7 Impact of supplier relationship on quality management ......................................... 13
2.3.8 Impact of supplier relationship on cost reduction .................................................. 14
2.4 Social Capita Theory ............................................................................................... 14
2.5 Empirical Literature Review .................................................................................... 16
2.5.1 Review from International studies......................................................................... 16
2.5.2 Review from Local Studies ................................................................................... 24
2.6 Conceptual framework /model for the proposed study ............................................. 25

CHAPTER THREE .................................................................................................... 28

RESEARCH METHODOLOGY ................................................................................... 28
3.1 Introduction ............................................................................................................. 28
3.2 Research Design and strategy .................................................................................. 28
3.2.1 Type of study design ............................................................................................. 28
3.2.2 Description of the Case ......................................................................................... 28
3.2.3 Area of the Study .................................................................................................. 29
3.3 Data Type and Sources ............................................................................................ 29
3.3.1 Primary data ......................................................................................................... 29
3.3.2 Secondary data ..................................................................................................... 29
3.4.1 Sample size........................................................................................................... 30
3.5 Sampling Technique ................................................................................................ 31
3.6 Data Collection Methods and Techniques ................................................................ 31
3.6.1 Documentary Review ........................................................................................... 31
3.6.2 Interview .............................................................................................................. 32
3.6.3 Questionnaire ....................................................................................................... 32
3.7 Data Analysis .......................................................................................................... 32
3.8 Reliability and Validity of Measurements ................................................................ 33
3.8.1 Reliability ............................................................................................................. 33
3.8.2 Validity ................................................................................................................ 33

vii
CHAPTER FOUR ....................................................................................................... 34
DATA ANALYSIS, RESEARCH FINDINGS AND DISCUSSION ............................. 34
4.1 Introduction ............................................................................................................. 34
4.2 Supplier relationships existing and its management techniques practiced by Tigo .... 34
4.3 Techniques used to promote good supplier relationship ........................................... 36
4.4 Supplier relationship management impacts on supply chain performance................. 38
4.4.1 Supplier relationship management and Cost reduction .......................................... 38
4.4.1.1 Collaborative relationship and Cost reduction .................................................... 40
4.4.1.2 Supply chain areas in which costs have reduced as an impact of SRM ............... 41
4.4.1.3 Supplier relationship management provides a room for competitive advantages42
4.4.2 Supplier relationship management and Quality ..................................................... 44
4.4.2.1 Involvement of the suppliers in new product development ................................. 44
4.4.2.2 Supplier involvement has impact on quality management .................................. 45
4.4.2.3 Criteria used by Tigo in evaluating quality of the supplied goods or services ..... 46
4.4.2.4 Quality assurance processes versus supply chain performance ........................... 46
4.4.2.5 Quality of goods meeting customers’ expectations ............................................. 47
4.4.3 Supplier relationship management and On-time delivery ...................................... 48
4.5 The impacts of the supplier relationship management on Tigo’s supply chain
performance ..................................................................................................... 50

CHAPTER FIVE ......................................................................................................... 52

CONCLUSIONS AND RECOMMENDATIONS ......................................................... 52
5.1 Introduction ............................................................................................................. 52
5.2 Summary of the findings .......................................................................................... 52
5.3 Conclusion .............................................................................................................. 53
5.3.1 Supplier relationships existing and its management techniques practiced by Tigo . 53
5.3.2 Impact of supplier relationship management on the performance of Tigo’s supply
chain ................................................................................................................ 53
5.4 Recommendations ................................................................................................... 54
5.4.1 Planning of the inventory and management ........................................................... 54
5.4.2 Informational sharing ............................................................................................ 55
5.5 Areas for further Research Studies ........................................................................... 55
REFERENCES ............................................................................................................ 56
APPENDICES ............................................................................................................. 59

viii
 LIST OF TABLES

Table 3. 1: The respondents expected in the sample size ................................................. 31

Table 4. 1: Supplier relationships that exist in Tigo ........................................................ 35
Table 4. 2: Responses on existence of supplier relationship management techniques ...... 36
Table 4. 3: Supplier relationship management techniques mostly used by Tigo............... 37
Table 4. 4: Contribution of SRM on cost reduction ......................................................... 39
Table 4. 5: The relationship between supplier relationship management and cost reduction
in Tigo’s supply chain ............................................................................................. 40
Table 4. 6: Collaborative relationship with suppliers’ versus cost reduction .................... 41
Table 4. 7: Areas of supply chain in which there is cost reduction in Tigo ...................... 41
Table 4. 8: Buyers -supplier’s relationships impact on competitive advantage ................ 43
Table 4. 9: Involvement of the suppliers in new product development ............................ 44
Table 4. 10: Impact of suppliers’ involvement on quality management ........................... 45
Table 4. 11: Criteria used by Tigo in evaluating quality of the goods or services supplied
................................................................................................................................ 46
Table 4. 12: Quality assurance processes and its impact on supply chain performance. ... 47
Table 4. 13: The impact of quality of goods or services in meeting customers’ expectations
................................................................................................................................ 48
Table 4. 14: The impact of supplier relationship management on timely delivery of
products .................................................................................................................. 49
Table 4. 15: Contribution of SRM on timely delivery of products ................................... 49

ix
 LIST OF FIGURES

Figure 2. 1: Relationship of variables under this study .................................................... 27

Figure 4. 1: Tanzania Telecommunication industry net additions- Q3 2015 .................... 43

x
 LIST OF APPENDICES

Appendix I: Research Questionnaires ............................................................................. 59

Appendix II: Interview Checklist .................................................................................... 65

xi
 LIST OF ABBREVIATIONS

4G 4th Generation

BMI Business Monitor International Ltd

CIPS Charted Institute of Procurement and Supply

KPI Key Performance Indicators

MIC Millicom International Cellular

SC Supply Chain

SCM Supply Chain Management

SRM Supplier Relationship Management

TCRA Tanzania Communications Regulatory Authority

TQM Total Quality Management

VMI Vendor Managed Inventory

xii
 CHAPTER ONE

OVERVIEW OF THE STUDY

1.1 Introduction

This study aimed at assessing the impact of supplier relationship management on supply

chain performance in telecommunication industry a case of TIGO. This chapter has

covered the study background, statement of the problem, objectives of the research and

research questions, significance of the study and organization of the paper.

1.2 Background of the Study

Virtuous and forceful supply chain management now has become a very essential and

important way for firms to maintain its competitive position in the market in order to

improve the organizational performance. Supplier relationship management contributes

highly to the performance of supply chain as all the company purchases whether products

or services are affected by how the company interacts with the supplier and how the

relationship is managed .In early 1990s, competition got intense because of the global

changes in relationship to delivering products or services at a right place and at the right

time (Osoro, 2015).

Globalization has made organizations to realize that in order to be competitive in global

and local market they have to make a lot of efforts so as to get economic efficiencies

within the organization to improve the entire supply chain so as to better than the

competitors. The organizations have to understand what practices are involved in Supply

chain management in order to achieve competitiveness in the market and outsmart the

trading partners, competitors and also describe the operations (Osoro, 2015).

1
The need for Supply Chain management is to advance and improve in the daily operations

activities of various corporations or organizations and therefore improve the performance

of all activities involved in supply chain (Osoro, 2015).

Supply chain innovation over the years has developed alongside with the desire and needs

of manufacturing firms and the insights of practitioners and intellectual researchers in

view of the need to strategically position firms for better performance. Supply chain

innovation is a combination of various fields of investigation having the early pedigree in

information systems, managing operations and managing the markets (Omale et.al, 2017).

Many firms believed that supply chain innovation is a means of competitive advantage.

However, one firm’s supply chain innovation is another company’s process improvement.

In today’s competitive business environment, misunderstanding a new idea may result in

wasting resources on an innovation that is not yet materialized. Lack of clarity is an issue

for academic debate (Omale et.al,).

In various academic literatures, Supply Chain management is still seen as a very important

aspects towards achieving firms overall performance. A firm should capable of managing

the operational competencies within the firm and in the firm supply chain in order to

sustain a competitive position the market (Okello and Were, 2014).

Supplier relationship management involves improving and fostering the interactions with

suppliers. Supplier relationship management does not differ much from customer

relationship management. The company has to foster interactions with its customers but

just as much it needs it needs to improve relationships with its suppliers so at to get timely

delivery of goods, quality of the goods and cost reduction (Nyamasege and Biraori, 2015).

2
Nyamasege and Biraori, (2015) in their study pointed out that at the level of strategic, the

process output is to get knowledge on existing of relationships and its levels in the firm,

and grouping and identifying of suppliers and collaborating with the suppliers in order

improve and promote good supplier relationships. After process group identifies the

conditions for grouping and categorizing of suppliers and extents of customization, the

relationship is developed and managed by supplier relationship management process.

Collaborations and interactions involved can be buyer captive or supplier captive. Supplier

captive interaction is when there are few chances for a supplier to change the buyer could

be due to the fact that the supplier has invested so much of the resources to come up with a

certain product and therefore changing a buyer will be a loss, especially when the supplier

has shortage of clients to offer products to. Buyer captive is when there is only one

supplier from which the buyer can buy from, that is a limited number of suppliers of

product. In this situation, relationships both parties should be able to benefit from each

other in order to reduce costs and increase profits (Nyamasege and Biraori, 2015).

Supply Chain fundamentally involves working with others; therefore also involves

relationships. Supply chain management is an interconnection of two or more parties that

are involved, through downstream and upstream relationship, in the various processes,

systems and activities that contribute to money worthy of a product and service for the end

users or consumers (Christopher, 1998). To manage supply chain well, collaborative

relationships have to be encouraged both internally and externally. Internal relationships

involve relationships, between the people processes and structures. External relationships,

involves the interconnection between organizations with different people, processes and

structures. With the advancement in global markets, companies are facing stiff

competition and supply chains are extending. The complexity of supply chains have

increased because the changes in the business markets and environments are becoming

3
very dynamic; distribution channels are expanding with an increasing dependence on

outsourced manufacturing and logistics (Smith et al., 2004).

Previously during the 1950s, logistics was considered to be in military areas (Ballou,

1978). Logistics involved procuring of items, maintaining and transporting of military

items, raw materials, and employees or organization personnel. Physical distribution and

logistics in the organization started in the 1960s and 1970s (Heskett et al., 1973). This era

of physical distribution and logistics prior to 1950 has been known as the “dormant years,”

where by logistics was not seen to be much a strategic unit (Ballou, 1978). During the

1950s various changes took place which could be grouped as a first “Transformation.”

This led the need to introduce logistics management, where by physical distribution

management in for firms that were manufacturing products was considered as a different

organizational unit (Heskett et al., 1964). This concept of SCM became more common in

the 1980s by logistics consultants (Oliver and Webber, 1992). The authors put much

emphasis on the need to view supply chain as a different unit as it helps in making

strategic decisions at the top level is essential in order to improve the chain for better

performance of the organization.

Supplier Relationship Management (SRM) evolved from traditional relationship that was

practiced in the 1960s. In the 1980s, the traditional relationship advanced to logistic

relationship and there after it advanced to partnership relationship around the 1990s (Da

Villa and Panizzolo, 1996).

With partnership relationship named SRM, parties in relationship are connected each other

as a single company which is sometimes referred to Vertical integration where by

information, cost, quality and resources are the responsibilities of both suppliers and buyer

(Da Villa and Panizzolo, 1996).

4
The launching of Tigo was done in 1993. Tigo is committed to invest in transforming the

country digitally in terms of communication. This enabled the company to become the

most innovative network operators as it was the first introduce the 3rd Generation (3G) and

GSM networks. 4G was launched in Dar es Salaam and still the company was a pioneer in

introducing such a high and strong network. In the last months of 2016, most of the

regions in Tanzania already had 4G network. Tigo holds a second positions among the

network operators in Tanzania right after Vodacom which is the biggest mobile operator

company.

Tigo Tanzania is part of Millicom Group (MIC) and which is leads internationally in

terms of developing and operating cellular networks and telephone services in the world,

MIC emerged in Latin America markets, Europe, Asia and Africa. Tigo emphasizes on

affordability, accessibility, and availability of network and telephone services. The

company creates a world in which mobile products or services offered are of a price that

can be afforded by many, easily accessed and available to everyone. This insures that the

company’s customers get services of high quality and at the same time with affordable

prices throughout the whole country.

Being the most innovative telecommunication company in the country, Tigo offers various

product and service portfolio in terms of voice, short message services, internet with high

speed and financial mobile services, sells simcards as well as scratch cards to its

customers. Tigo has introduced innovations such as Swahili Facebook, Tigopesa App in

which all transactions can be made through the App , Tigo Hadithi , Tigo Music and

leading platform for mobile money transfer across the borders through conversion of

currency in East Africa.

5
Over 500 network sites have been launched in the past three years which makes a total of

almost 2000 network sites. Having registered more than 11 million subscribers, Tigo has

employed more than 300,000 employees both directly and indirectly which includes

network operators, customer service agents and representatives, mobile money operators

and agents, customer sales agents and product distributors from the time operations were

initiated in 1993. Supply chain management acts a very important role in improving the

company’s performance. The study will help in proving the knowledge gap on the

contribution and effects of well management of supplier relationship on supply chain

performance.

1.3 Statement of the Research Problem

In the current business environment, a lot of companies have a large number of

unorganized supplier relationships or unmanaged suppliers that are supporting their

businesses. There are so many problems that result from supplier relationship, that are

caused by failure of managing the relationships. Failures of products meeting required

regulations and standards in the company, poor customer levels of customer service

because of delaying the products and poor communication, trust, collaboration,

commitment and very complex designs of the product and portfolio offers that are not

properly differentiated within the minds of the customers were the issues that resulted

(Lemke et al., 2002).

Despite the fact that Supplier relationship management is of great importance, very few

organizations practice it in developing countries. There are few studies that have explored

the effect of supplier relationship management on organization performance (Sanchez &

Perez, 2003, Dyer & Chu, 2000) .Available empirical studies on the topic have been done

in developed countries (Nyamoita, 2015; Wachira, 2013 and Parker, 2010).These studies

6
focused much on the relationship of supplier management on the supply chain

performance in the banking, textiles, retailers business and beverage industry.

However very scant information is available on how supplier relationship management is

practiced in the telecommunication industry and its overall impact on the performance of

the supply chain.

The matter in hand is to get insights on the contribution of Supplier Relationship

Management on the performance of Supply chain function in the telecommunication

industry. Also to examine its contribution on operational efficiency, cost reduction, market

competitiveness and creation of value within the firm. So many studies were done in the

developed countries but few known studies have objectively ascertained if the mentioned

benefits of collaborative buyer supplier relationship has been realized by Tanzania. It is on

that basis that this study was put to fill the knowledge gap on the contribution of SRM on

the performance of supply chain management in telecommunication companies, Tigo

Tanzania being a case study.

1.4 Research Objectives

1.4.1 General Objective

The main aim of this study was to assess the role of supplier relationship management on

supply chain performance in Telecommunication Industry.

1.4.2 Specific Objectives

(a) To examine the supplier relationships existing in Tigo.

(b) To examine supplier relationship management techniques practiced by Tigo

(c) To determine the influence of the supplier relationships that exist on Tigo’s supply

chain performance

7
(d) To assess the impact of the existing supplier relationship management on supply chain

performance of Tigo.

1.5 Research Questions

1.5.1 General question

What are the impacts of supplier relationship management on supply chain performance in

Telecommunication Industry?

1.5.2 Specific question

(a) What kind of the supplier relationships exist in Tigo?

(b) What supplier relationship management techniques are practiced by Tigo?

(c) How do existing supplier relationship Tigo’s supply chain performance?

(d) What is the impact of the existing supplier relationship management on Tigo’s

supply chain performance

1.6 Significance of the study

(i) The study will be used by managers to get more knowledge on importance and

benefits of supplier relationship management on supply chain performance in

Telecommunication Industry and other industries as well.

(ii) The study will assist scholars interested in conducting research on the impacts that

supplier relationship management has on supply chain performance in

Telecommunication Industry and related areas as a source of reference.

(iii) The study will contribute to knowledge gaining, policy development and

management practices. Knowledge gained from the findings will help to develop an

understanding on the effect of supplier relationship management on performance of

supply chain function of the organization.

8
(iv) The study addressed the gap of knowledge which can assist decision makers in

formulating new strategies that contribute in enhancing good supplier relationship.

(v) Finally on management practices, the findings answer questions posed by companies

on whether investing on strengthening relationship with suppliers could reduce

costs, improve operational efficiency and improve the quality of the goods/stocks

delivered

9
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter incorporates literature review in relations to the interests of the study by

reviewing different issues and various researches from authors in the related field of study

with the aim gaining knowledge and enabling the researcher to become familiar with any

relevant information about the problems being studied. It covers literature relating to

supplier relationship management on supply chain performance.

2.2 Theoretical Literature Review

2.2.1 Theory of the Study

A theory is an interpreted statement or a group of various statements that are accompanied

by evidences, aimed to explain about the phenomena (Kombo, 2009) .This study based on

the following theory as follows,

2.3 Definition of Key terms

2.3.1 Supplier

Dobler, (1995) defines supplier as the external part that delivers goods or service to the

organization. According to his definition a supplier can also be called a vendor, contractor

or service provider. Supplier is a part of the supply chain function of the organization.

Supplier has been defined elsewhere as a group or person that offers goods or service to

the organization for certain compensation. Companies have a number of suppliers that

supply goods or services. It is from these suppliers that a long term supplier relationship

may later be established.

10
2.3.2 Supply Chain

Supply chain can be defined as a group of entities or organizations that are involved in

distributing a product or service and covers all the steps till the product reaches the final

consumer, (Carter, 1989). The components that make up a supply chain involve

manufacturers, agents, wholesalers, retailers and dealers that distribute the product to the

final consumer or end user. This study will assess how proper management of supplier

relationship will have impact on the supply chain.

2.3.3 Supply chain management

According to Dobler, (1995) supply chain management involves the optimization of

supply chain resources so as to develop operational efficiency and reduce costs. It involves

proper management of the flow of information and material among components that make

a supply chain network. Supply chain management involves good cooperation and

communication among suppliers, distributors, dealers and retailers and it requires high

commitment among partners.

2.3.3.1 Supply chain management metrics

Supply chain involves complex relationship among different parties, Christopher, (1998).

For this reason there are various standards of measurement. These standards involve

perfect order measurement, supply chain cycle lead time, inventory turnover, customer

order cycle time and on time shipping and delivery. A supply chain is considered to be

performing well if these measurements are met. The supply chain metrics will be used in

the study to measure the performance of the supply chain.

2.3.4 Relationship management

This refers to managing contracts or managing suppliers, where by both groups actively

aim to become very familiar with each other so that the parties can forecast their

11
reactions to the unforeseen situations that may result or occur in order to have win - win

effect (Charted Institute of Procurement and Supply (CIPS, 2013).

2.3.5 Supplier relationship management

Supplier relationship management (SRM) is an organized, wide examination of suppliers’

assets and strengths in relation to the company’s business strategy, determining the

activities to involve with various suppliers, and organizing and executing of all

negotiations and communications with suppliers, in by coordinating the relationship with

the supplier cycle of relationship, maximizing the value that is realized from the

interactions between the company and suppliers (CIPS, (2013). The aim of supplier

relationship management is to bring a winning environment for all the parts involved so to

improve operational efficiency. Through a good relationship with suppliers a competitive

advantage can be obtain for the organizations as a well-managed relationship with supplier

may led to cost leadership.

Tobias (2009) has defined Supplier Relationship Management (SRM) as various supplier

practices in the business environment that are initiated by collaborative soft wares and that

allow organizations to collaborate with the vendors so as to gain mutual benefit and

success. SRM tools aims at reducing cost of operations and also ensuring goods are of

high quality.

Supplier relationship management is the means through which the company interacts with

the vendors and suppliers. This does not differ much from customer relationship

management (CRM). It is important foster and improve relationships with suppliers just as

much as it is in maintaining a good relationship with the customers. The main objective is

to have win – win relationship through which both the company and the suppliers benefit

(Mettlerand Rohner, 2009).

12
2.3.6 Impact of Supplier relationship on operational efficiency

Well managed supplier relationships may lead to high operational efficiency. Supply

chain operational efficiency can be in terms of product availability and on time delivery of

products to the customers. Kannan and Tan (2006) ,have greatly put emphasis on the

impact of a well-managed relationships with suppliers and buyers towards the quality of

products and service as well as on time delivery. Strategically, much emphasis was put

on sustaining improvements in operations, innovating in production, enhancing

competitiveness, and increasing market presence (Kannan and Tan, 2006).

“How the company handles the supplier’s side and interactions has a great impact on

achieving a competitive position and hence generating profit within the company” Gadde

and Håkansson, (2001). Supplier relationship management can be a pillar for developing a

strong competitive advantage in the current global economy. From having a good

relationship with suppliers, the company may be able to outperform its competitors hence

developing a strong competitive advantage.

2.3.7 Impact of supplier relationship on quality management

A product is considered to be of quality when it meets customer’s expectations (Carter

1989).The customer may consider rebuying the product or service if the product is of high

quality. Customers consider products to be of low quality when expectations are not met.

Previous researches conducted on the relationship existing between suppliers and buyers

put much emphasis on the performance of suppliers (Villa and Ponizolo (1996). Various

researchers assessed the communication channels and processes used in transferring

information within the buyers and suppliers and came up with the results that with buyer

and supplier groups good communication directly leads to the reduction in the levels of

defects in the products or services supplied (Carter and Miller, 1989).

13
Lascelles and Dale (1989) in automotive suppliers study in Great Britain came with

conclusions that unreliable and bad communication and supplier's poor knowledge on

buyer's requirements were hindrances improving the quality of products and services.

Some studies have shown that improving quality of suppliers leads to high quality of as

well. Removal of inspections of new or purchased materials can only be attained through

emphasizing on selecting good suppliers, (Toni and Nassimbeni, 2000). Supplier quality

improvement incorporates issues such as certifications of suppliers with regards to quality

and provision of technical help to them. Improving quality of suppliers would lead to

better quality of products and increase productivity, improve the product of parts designs,

and reduce the costs of operations, Lee and Ansari, (1985).

2.3.8 Impact of supplier relationship on cost reduction

Suppler relationship management practices have great impact on cost reduction for the

buying party. Suppliers are ready to divide the cost efficiencies obtained through the

adopting of innovative technologies and methodologies with companies involved in a

working relationship. Instead of comparing their suppliers from various industries,

customers can concentrate on their selected suppliers to share upcoming market trends

both globally and locally (Verma and Pullman, 1998).

Supply chain managers most of times tend to consider a dynamic number of supplier

characteristics such as quality, cost, how reliable the supplier is, and on time delivery

while making operation decisions, Market researchers have indicated that cost contributes

to decision making in the organization (Verma and Pullman, 1998).

2.4 Social Capita Theory

In the field of sociology, social capital is the foreseen collective or economic benefits

derived from the preferential treatment, collaboration and cooperation among individuals

14
and groups. Despite the fact that various social sciences put emphasis on multiple aspects

of social capital, both have a common agreement or idea that social networks create value

in the organization. Just as a screwdriver (physical capital) or a university education

(cultural capital or human capital) can improve company’s productivity (both individual

and collective), so do social interactions impacts the level of production among

individuals and organizations as a whole (Putnam and Robert, 2000).

Hence social capita theory suggest that relationship and in this case buyer supplier

collaborations may result in added value and also I use this theory because it was used by

(Kepher et.al, 2015) on the study focused on showing how supplier management plays a

role on procuring unit performance in the manufacturing sector within Kenya: a case of

East African breweries, Kenya in which there is the relationship between my study and

their study and also it is the only theory I use because it answers and suitable to drawn the

conclusions of the research.

Likewise the study theory also can answer three objectives of examining the supplier

relationships existing in Tigo, determining the influence of Tigo’s existing supplier

relationship on the performance of Tigo’s supply chain and also on assessing the impact of

the existing supplier relationship management techniques on Tigo’s supply chain

performance. The theory can answer the specific objectives by focusing on the economic

benefits and preferential treatment that result from cooperation among individuals and

therefore draw the conclusion of the general research objective which was to assess the

impact of Supplier Relationship Management on Supply Chain Performance in

Telecommunication Industry: A Case Of Tigo.

15
2.5 Empirical Literature Review

2.5.1 Review from International studies

Mwilu (2013) on assessing practices of Supply chain management and performance in

Kenya public instituons, The study comprised of three main objectives that were

establishing the extent to which implementing supply chain management practices in the

public research institutions in Kenya, determining the impact of SCM practices on the

research institutions performance in Kenya and to evaluating the challenges that are

facing public research institutions when adopting SCM practices in Kenya.

Findings obtained from the data analysis from the above study are as follows. On the side

of practices of SCM, the research study found that adaptation of a number of SCM best

practices and implementation to a great extent, majority of the practices have been

implemented to a moderate extent. Therefore it is concluded that involving suppliers in the

planning process; which is a very important best practice had been implemented only to a

small extent (Mwilu, 2013).

Finally (Mwilu, 2013) concluded that few good practices were fully implemented with

majority of people still lagged behind. On the side of the relationship existing within SCM

practices and firm performance, among the seven variables only three variables that

planning for inventory, inventory controlling, distribution center management,

Warehousing activities and transporting of items were pointed to have strong relationships

with performance statistically. Knowledge on SCM has a significant role in performance

of the organization.

Likewise Omale et.al, (2017), on the strategic impacts of supply chain innovation on firm

performance. The need to be proactive to customers demand and the intensifying

challenges from globalization and the rising cost of consumable goods necessitated the

16
researchers desire to explore, strategic impacts of supply chain innovation on firms’

performance.

Findings reveal that supply chain innovation involves an integrative system of customers,

suppliers, manufacturers, information technology, materials flows and movement and

finance through physical and human resources for enhance performance. Supply chains

innovation requires array of interactions and multiple paths in which products and

information pass through. To get more benefits from supply chain innovations, companies

must identify availability of it internal strengths and capabilities together with the external

units and resources of its supply chain network to satisfy customer requirements (Omale

et.al, (2017).

Finally Omale et.al, (2017) concluded that Supply chains innovation requires array of

interactions and different paths from which information and products pass which

includes the warehousing services, transportation services, inventory controlling and

management, packaging, product storage as well as regional or national distribution

Centers .

Likewise the study by Bwari et.al, (2016) on the effects of the third party logistics on the

Supply chain performance. The purpose of the study was to determine and identify the

effects of 3PL on supply chain performance in East African Breweries Limited.

The study found out that inventory control, distribution management, transportation

management influenced supply chain performance to a great extent but warehousing

management services influenced supply chain performance to a moderate extent Bwari

et.al, (2016).

17
Finally Bwari et.al, (2016) concluded that there is a strong and statistically significant

relationship between supply chain performance and inventory control, distribution

management, transportation management services provided.

Additionally the study by Kimani, (2013) on the Lean supply chain manufacturers,

retailers, wholesalers, suppliers, distributors, third party service providers (3PLs) and

everyone that plays a part in the supply aim at reducing and balancing the costs,

improving distribution channels , managing time and good managing of inventories so as

to keep being profitable and meet the customers' expectations. The objective of the study

was to explore lean supply chain management in the manufacturing sector in Kenya.

The study found that the practices that were adopted are preventative maintenance and

reduction in the preliminary finishing time (Kimani, 2013).

Also the study by (Osoro, 2015), on the factors affecting performance of supply chain

system in the petroleum industries in Kenya. The purpose of the paper was to identify the

various challenges that are affecting supply chain systems performance. The increase in

fuel shortages by organizations has brought the need for oil companies to reorganize their

supply chain processes and systems with the aim of conducting good future forecasting.

Fuel resources has been relied by the companies in the petroleum industry in Kenya in

insuring that the companies offer quality services and products to their customers.

The findings of the paper confirm that oil companies need to implement supply chain

systems as a continuous process to achieve sustainability in the supply chain processes.

The study concludes that both national and international companies need to enhance the

levels of implementing green supply chain practices in managing their operations (Osoro,

2015).

18
Okello and Were (2014) on the influence of the supply chain management practices on

performance of Nairobi Securities Exchange Listed food manufacturing companies.

According to this study, there is poor performance of manufacturing companies in Kenya

and the companies face stiff competition from food supplies companies that are owned by

oversea countries. This has resulted from market dynamics together with complications

within supply chain that brings about so many challenges and risks food manufacturing

industry in Kenya.

The general purpose of this study was to examine the influence of supply chain practices

on the performance of food manufacturing companies in Nairobi Kenya. This study was

led by these research objectives: Finding out how product development impacts the food

manufacturing companies performance in Nairobi Kenya, determining how inventory

management effects the performance of food manufacturing companies in Nairobi Kenya,

To establish the extent to which lead time affects the performance of food manufacturing

companies in Kenya and To determine how technology affects the performance of food

manufacturing companies in Nairobi Kenya (Okello and Were,2014).

Finally (Okello and Were, 2014) concluded that the listed issues have been identified

clearly in each of the four objectives. In concluding, it is necessary to note that product

development stage, management of inventory, lead time management , technology and

innovation have a high influence on the performance of food manufacturing companies in

Kenya and it is important to address them as the success of such companies depend on the

effect management of these four issues

Additionally study by (Nyamasege and Biraori, 2015) on assessing the effect of supplier

relationship on the effectiveness of supply chain management practices. The study found

that supplier relationship management highly contribute to the performance of supply

19
chain management practices in the ministry of finance. Having collaboration with

suppliers contributes to effectiveness in SCM in acquiring services and goods. Findings

also revealed absence of comprehensive approach for managing interactions with

suppliers, greatly impacted realization of improved effectiveness on supply chain systems

and processes between an organization and the suppliers.

The study concluded that the effectiveness of supply chain management practices in the

ministry of finance depended on application of modern supplier relationship management

strategies. Supplier relationship activities play important role where players willingly

share risks and rewards and maintain relationship on long term basis (Nyamasege and

Biraori, 2015).

Likewise study by Muema(2016) on supplier relationship management strategies

commonly used by Sports Kenya and to establish the relationship between supplier

relationship management strategies and procurement performance of Sports Kenya.

Finally it was observed that(Muema,2016) concluded that At 5% level of significance

and9 5% level of confidence, supplier segmentation strategy, supplier performance

management strategy, supplier relationship management governance strategy and supplier

development strategy were all significant in procurement performance.

The study recommends that Sports Kenya need to train their staff on the implementation

of these SRM strategies and adopt early supplier involvement in supply chain

management for them to obtain maximum benefits. The study also recommends

intensified implementation of supplier governance strategy and supplier development

strategy since they had significant relationship with procurement performance (Muema,

2016).

20
Additionally study by Kamau (2013) on establishing the effect of buyer – supplier

relationships on organizational performance among large manufacturing firms in Kenya.

The study had three objectives, to determine the extent to which large manufacturing firms

in Kenya have adopted the concept of buyer-supplier relationships, to determine the

challenges facing buyer-supplier relationships and to determine the effect of buyer –

supplier relationships on organizational performance.

The result of the findings shows that study established that most large manufacturing firms

that operate in Kenya have been in existence for more than ten years. The study confirmed

that most manufacturing companies in Kenya had embraced the concept of buyer -

supplier relationships as they had incorporated most buyer- supplier variables in their

operations (Kamau, 2013).

Also the study by Maraka (2015) on how supplier relations management could be used to

enhance the performance of the sugar industry in Kenya. The study was guided by the

following research objectives, to: determine the effect of the organization structure in the

performance of an organization, determine the effect of value measurement on the

performance of an organization, determine the effect of collaboration on the performance

of organizations and finally determine the effects of technology in the performance of

organizations.

The study recommends that the organization adopts supplier optimization policies where

the company will be able to pick suppliers based on their capabilities and not just based on

the price and the quality of service or product. These procurement policies will ensure that

delays resulting from the procurement process are corrected and the organization is able to

positively influence its performance through the procurement department and not lose

money through the same department (Maraka, 2015).

21
Janet and Kiarie (2015) this research project was set to determine the effect of supplier

management practices on supply chain performance among State Corporations in Kenya.

Managing suppliers is a large part of the job of supply chain professionals. Suppliers are

key stakeholders in any firm’s supply chain since they form a key component of the

upstream supply chain partners.

From the study findings it is important to observe that performance of supply chain highly

dependent on the choice of the supplier. Performance measurement was also an important

evaluative tool which further aided the identification of suppliers and determined the

relationship with former and current suppliers. Supplier identification practices were

commonly carried in KEMSA but their effectiveness was affected by inaccessibility of

some supplier information, false information offered by some companies and customer

collusion with brief case companies to ascertain documents of inexistent contracts (Janet

and Kiarie, 2015).

Tanguset.al (2015) on manufacturing industry plays a significant role in the growth of the

world’s economies. However it is highly affected by increased competition on the global

market and extended supply chains. Supplier relationship has been shown to impact on

performance of firms. This study sought to establish the effect of supplier relationship

management practices on performance of manufacturing firms in Kisumu County.

The study concludes that increasing information sharing with suppliers would

significantly improve performance in manufacturing firms which accounts for 37.8% on

performance. Study recommends development of supplier development programs,

strategic management of supply base and increased information sharing (Tanguset.al,

2015).

22
Additionally, the study also concludes that though supplier development and supplier

segmentation are practiced to a certain extent, they do not have significant association

with performance of firms. Only information sharing showed statistically significant

association with performance and thus increasing information sharing were more likely to

result in improved performance (Tanguset.al, 2015).

A study by Nyamoita, (2015) conducted a study on the influence of supplier relationship

management on supply chain performance in banking industry. The study used

Cooperative Bank of Kenya as a case study .168 employees were selected as a sample to

conduct this study. Findings of the study shows that the influences of supplier buyer

relationship on supply chain performance are trust, communication, power dependence

and cooperation.

Also study by Parker, (2010) conducted a research study on buyer supplier relationship in

South Africa textile industry with the aim of exploring factors that determine collaboration

and outcome in buyer supplier relationship. The study findings showed that the current

business pressures bring about the need for collaboration between buyers and suppliers.

These findings shed light on the experiences of South African textile firms engaging in

buyer supplier collaboration in products development; the study provided evidence

supplier relationship has great impact on organization performance. The research focused

on textile industry but this study seeks to analyze the impact of supplier relationship in a

telecommunication industry (Parker, 2010).

Also additional study by (Minoo, 2015) conducted a study on determinants of buyer

supplier relationship on procurement performance in supermarkets in Kisii Kenya. It was

conducted through a descriptive survey design; the study found that trust, commitment,

cooperation and communication are the key determinants required in SRM to influence

23
procurement performance. Minoo’s study ascertained determinants of procurement

performance in SRM in retail industry in Kenya; current study seeks to assess effects of

SRM in procurement performance in the telecommunication industry of Tanzania.

2.5.2 Review from Local Studies

Mollel (2015) on investigating the understanding, practical implementation of SCM

practices towards organizational performance in food processing firms located at Dar es

Salaam, Tanzania. Six key dimensions of SCM practices (strategic supplier partnership,

customer relationship, quality and level of information sharing, outsourcing and lean

practices) were used as independent variables accompanied by different measurement

instruments under each variable, while market and operational/financial performance

variables were used to measure the organizational performance.

From the study findings, it showed majority of Tanzanian food processing firms

understood the concept of implementing SCM practices. The level of practical

implementation was uneven practiced that is only strategic supplier partnership, customer

relationship, quality of information sharing and lean practices were practiced at great

extent. Practices such levels of information sharing and outsourcing were lowly practiced

(Mollel, 2015).

Finally it is recommended that It is essential for senior and middle managers are trained

first so that they are more likely to understand the usefulness of SCM practices

implementation and become committed to it.

Likewise the study by (Salume, 2013) on examining factors affecting supply chain

management practices in manufacturing companies in Tanzania by concentrating on

Tanzania Distilleries Limited (TDL). Specifically, the study wanted to identify supply

chain management practices used by TDL, examine the effectiveness of supply chain

24
management practices at TDL and show factors affecting supply chain management at

TDL.

The study concluded that contributing factors to supply chain management

practice were; employee’s incapability, high cost of management, poor product quality,

poor performance, unorganized processes and technology incapability, unorganized

schedules for production, unclear policies policies and regulatory appliances, lack of time

management and supplier(s) misbehaviors. On top of the above there were breakage of

beverage bottles on transportation, transportation costs for distributing finished products to

dealers scattered throughout the country were very high, unfriendly and bad road

infrastructure which lead to delays of distribution of products to end users and the lack of

reliable suppliers for raw materials (Salume, 2013).

Salume (2013) suggested that minimize the challenges that resulted from suppliers; only

reliable suppliers were to be considered and selected by TDL. The study also suggested

that TDL staff members should be educated on supplier management practices so as to

eradicate lack of awareness and knowledge on that subject. Training should be conducted

among the teams so to have the best practices of supply chain management in form of

workshops ,classes and seminars.

2.6 Conceptual framework /model for the proposed study

Conceptual framework as defined by Kombo, (2002) is a scheme of variables or concepts

that are used in operation with the aim of achieving a set of objectives (Kombo,

2002).This study sought to identify the supplier relationships existing in Tigo, its

management techniques, the influence of the supplier relationship that exist on the

performance of Tigo’s supply chain and the extent to which supplier relationship

management impacts Tigo’s supply chain performance to be independent variables, and

25
the impact of supplier relationship management on supply chain performance in

telecommunication industry to be dependent variable and when measuring the

performance of the supply chain criteria considered were on time delivery of goods or

services, product quality, cost reduction and operationally efficiency and the relationship

is measured based on commitment, trust, and collaborations between the supplier and the

buyer as shown in figure 2.1.

26
Figure 2. 1: Relationship of variables under this study

Supplier relationship existing;

 Transactional relationship
 Collaborative relationship
 Value Added relationship

Supply
Influencing variables of the ChainPerformance;
relationship of the performance
 On time delivery
of the supply chain;  Quality of goods
 Informational sharing  Cost reductions
 Trust  Operational
efficiency
 Communication
 Collaboration

Impacts of the relationship on

the performance of the supply
chain;
 Reduced procurement,
distribution and inventory costs
 Supply chain coordination
 Reduced price fluctuations
 Continuous operational
improvement
 Increased efficiencies of the
supply chain performance

Source: Developed by the Researcher from Literature Review, 2017

27
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter addressed the way the study was carried out. It puts forward the research

design and strategy that was used and briefly describes the area of the study. It also

describes the sampling plan and states data type and resources, the main instruments and

techniques employed in the field work, data collection methods and analysis that were

employed in conducting this study.

3.2 Research Design and strategy

3.2.1 Type of study design

A research design is the framework for a study that specifies how each activity was

conducted to accomplish the research objectives, which includes specifying the

information required, designing the instruments, selecting the sample, collecting and

analyzing the data (Robson, 2002).

A case study design was adopted. A case study design seeks to describe a unit in details in

context and holistically (Kombo and Delno, 2009). A case study designs because this

research intended to address “how” and “why” questions, while taking into consideration

how a phenomenon is influenced by the context within which it is situated. It also enabled

the researcher to gather data from a variety of sources and to converge the data to

illuminate the case. Cross sectional Case study design was used to study the unit in details.

3.2.2 Description of the Case

The main objective for this particular study was to assess the impacts of supplier

relationship management on supply chain performance in Telecommunication Industry

using Tigo Dodoma as a case study.

28
3.2.3 Area of the Study

The study was carried out at Tigo Dodoma branch. This is because few known studies

have been done at this area concerning supplier relationship management and its effects on

supply chain performance. Another reason behind selecting this case study is the cost of

conducting it is low and easy access of secondary and primary data from Tigo offices in

Dodoma. The case is expected to be rich in information that would be relevant and helpful

to answer the study questions and achieve the study objective.

3.3 Data Type and Sources

The researcher used two types of the data during the study; which includes the primary

and secondary data to provide answers to the research questions or test/validate the

research questions.

3.3.1 Primary data

It may be defined as two-way systematic conversations between an investigator and an

informant, initiated for obtaining information relevant to a specific study. (Krishnaswami

and Ranganatham, 2011). This study used the structured interview in order to allow

respondents to give enough explanations on the questions to be asked. Additionally

personal interview that face to face interview was conducted with the respondents and also

the prepared interview checklist was used to ask the respondents as shown in the appendix

II.

3.3.2 Secondary data

Documentations from both published and unpublished materials was used for secondary

data; this was gathered mainly from libraries, archives, journals, government policies and

documents, websites. Secondary Data consisted of the description of assess the impact of

29
supplier relationship management on supply chain performance in Telecommunication

Industry.

3.4 Sampling Plan

Sampling is the process of obtaining data about the entire population by examining only

part of it (Kothari 2004).

The population of this study was the number of employees, suppliers, agents and dealers

of Tigo Telecommunication Company in which the total number of the population is 100

numbers of the people of which the research used to choose the 90 respondents in which it

was appropriate to get the required data. Attention during the collection of data though

was given to supply chain unit as it has efficient knowledge of how right time purchasing

is carried out in the organization.

3.4.1 Sample size

Krishnaswami, et al. (2006) defines a sample as a part of universe or population which is

used to make inferences. This study used a total number of 90 respondents that was

selected to provide information and views regarding this study. The selected number of

the respondents was because of time, money and human resources constraints.

The sample size include Supplies officers, 3rd Part Logistics Managers, Stock Point

Controllers, Dealers representatives, and Supply chain Analysts which makes a total

number of 90 respondents with the knowledge of the study and used to represent the

whole population. The researcher chosen these objects because they are the one who were

involved time to time in the supply chain activities of the Tigo and also they provided the

required information on the impacts of the impact of supplier relationship management on

supply chain performance in telecommunication industry as far as Tigo is concerned.

30
Table 3. 1: The respondents expected in the sample size

S/N Participants Population Number of

respondents
1 3rd Party Logistic Managers 10 10
2 Stock Point Controllers 25 20
3 Supplies officer 20 15
4 Supply Chain Specialists 18 18
5 Dealers ( Distributors) 27 27
Total 100 90

Source: Researcher own Design, 2017

3.5 Sampling Technique

Saunders et al., (2009) defines Sampling as the process of drawing a sample from

population. According to Churchill (1995), there are two types of sampling procedures,

namely probability and non – probability sampling procedures.

The study employed Purposive sampling and Simple random sampling in selecting the

respondents to be included in the sample size. Purposive sampling was used to select the

respondents who give key information which are the 3rd Party Logistics managers, Supply

chain specialists and supplies officers while simple random sampling was used in

selecting respondents such as stock point controllers and dealers.

3.6 Data Collection Methods and Techniques

Three research instruments will be used to collect data .These includes interview,

questionnaires and documentation review.

3.6.1 Documentary Review

A documentary source employed includes journals and magazinelibraries, archives,

journals, government policies and documents, websites. Documentary Data consisted of

the description of materials relating to the supplier relationship variables, techniques used

31
to manage the supplier relationship, type of the relationship that is existing in Tigo in

managing the supplier relationship.

3.6.2 Interview

The researcher conducted the structured interviews on the respondents who are directly

involved in the supply chain of the Telecommunication Industry as far as Tigo is

concerned. A guide on interview was prepared so as to ensure there is consistency during

questions asking from the respondent’s point of view and follow up of the questions.

3.6.3 Questionnaire

Questionnaire is defined as a series of question each one providing a number of alternative

answers from which the 90respondents can choose. The advantage of this method is that it

is cheap, gives respondents adequate time, allows the use of large samples and information

is free from bias. Self-administered questionnaire was used during the data collection in

order to obtain the required on formation about the impacts of the supplier relationship on

the performance of Tigo’s supply chain.

3.7 Data Analysis

Both quantitative and qualitative techniques were used to analyze the data collected. Data

analysis examines what has been collected in survey and making deduction endurances, it

involves uncovering underlying structure (Kombo, 2009).

The study employed qualitative data analysis to summarize and interpret the details that

was collected through interviews and questionnaires. Deductive approach was used to

analyze the qualitative data. In this case, the research questions were used as a guideline

for grouping and analyzing the collected data.

Descriptive statistics was used to analyze the quantitative data by making use of minimum

32
and maximum ranges values, frequencies and percentages. Numerical values were

summarized through charts, graphs and tables. The data collected was complied, coded

and analyzed using the Statistical Package for Social Sciences (SPSS).

3.8 Reliability and Validity of Measurements

3.8.1 Reliability

Reliability as referring to whether the instruments are measuring consistently the

phenomena (Kothari, 2004). In this study, reliability was achieved through the use of a

test-retest approach. This involved using the research instruments such as questionnaires

on the respondents and using it again on the same respondents repetitively to see if the

same results will be obtained. This helped to minimize the weaknesses of any single and

increased the reliability of data collected. Additionally, pre-testing instruments of data

collection and training research assistants to improve their language, wording and tools

were able to capture the relevant data to be collected.

3.8.2 Validity

Validity refers to whether the index/instrument is addressing what was intended to be

described or measured. It is the ability to which the results of a study can be verified

against the stated objectives (Janny, 2005). Validity’s major concern is whether the

research is true and whether it is evaluating what is supposed or intends to evaluate

(Zohrabi, 2013). Content validity, addresses the match between the content or subject area

they are intended to assess and test questions. Additionally, validity was attained by

sharing ideas with other researchers and research supervisors; this strengthened the

research findings and interpretations. The researcher generally ensured that the content

validity of instrument was tested before data collection.

33
 CHAPTER FOUR

DATA ANALYSIS, RESEARCH FINDINGS AND DISCUSSION

4.1 Introduction

This chapter presents and analyze data basing on the specific objectives of the study which

were to examine the supplier relationships existing and supplier relationship management

techniques practiced by Tigo, to determine the influence of the supplier relationship that

exist on the performance of Tigo’s supply chain and lastly to assess the impact of the

existing supplier relationship management on supply chain performance of Tigo.

Discussion of the findings is addressed in this chapter.

4.2 Supplier relationships existing and its management techniques practiced by Tigo

Having effective and efficient supplier relationship management plays a vital role in

improving performance of any organization. Tigo Tanzania Company like other

telecommunication companies, put big emphasis on management of supplier relationships

that exists so as to remain competitive in the market.

The study revealed that Tigo has four main suppliers of simcards and scratch cards

(vouchers). Rushab Tanzania and Ellams are the main suppliers of scratch cards and both

supply simcards in TZS 500, TZS 1000, TZS 2000, TZS 5000 and TZS10000

denominations. DZ Card Thailand and Morpho Cards- South Africa are suppliers of

simcards. Simcards supplied by Morpho Cards and DZ Cards are 32k usimkits,32k usim

blank, 32k usimkit blank, simcard simkilite, nano simcards, java, simcard blank,64usim

kits, 64 usim blank and java blank. These simcards are used for registration of new

simcards and for renewing old numbers.

34
Through content analysis by reading reports, journals, articles and interviews with Tigo’s

Supply Chain Analysists, the study revealed that there are several supplier relationships

that exist in Tigo Tanzania.

Macha, (2016) on her study on the impact of supplier relationship management on

procurement performance found that there are various types of supplier such as

Transactional relationship, Value added exchanges and Collaborative

relationship/Partnering. Transactional relationship involves one time exchange or

transaction with no intention to extend or keep the relationship with the customers. Value

added Exchange involves doing business with the customers but also offer continuing

incentives or services so as to motivate the customer to keep the relationship and repeat

the purchase.

This objective was analyzed by interviewing Tigo’s supply chain team such analysists,

dealers, and stockiest on the type of supplier relationships that exists, and the results are

presented in table 4.1

Table 4. 1: Supplier relationships that exist in Tigo

Frequency Percent
Collaborative 72 80.0
Transactional 5 5.6
Value Added 13 14.4
Total 90 100

Source: Research Data, 2017

Table 4.1 shows that a significant number of the respondents of about 80 percent said that

Tigo has a collaborative supplier relationship, 5.6 percent said that Tigo has Transactional

relationships while 14.4 percent of the respondents said that Tigo has Vale Added supplier

relationship. The study results revealed that Tigo practices a Collaborative Relationship. A

35
collaborative relationship implies that there is win –win outcome where by all members of

the supply chain benefit from each other and this concurred with the report of the (Bwari

et.al, 2016) on the effects of the third party logistics on the Supply chain performance. The

purpose of the study was to establish the effects of 3PL on supply chain performance in

East African Breweries Limited in which it was concluded that there is a positive and

statistically significant relationship between supply chain performance and inventory

control, distribution management, transportation management services provided.3PL is a

relationship where there is partnership between two parties, in this relationship a supplier

needs to understand well the requirements of the customers so as to meet the

replenishments and avoid stock run outs.

4.3 Techniques used to promote good supplier relationship

Supplier relationships when well managed, leads to improvement of operational

efficiency and overall organizational performance. These relationships however, needs to

be well managed. This study sought to examine various supplier relationship management

techniques that are used by Tigo. The figure below shows responses if the respondents

agree that there are techniques used in managing supplier relationships

Table 4. 2: Responses on existence of supplier relationship management techniques

Responses Frequency Percent

Supplier management techniques exist 87 96.7
Supplier management techniques do
3 3.3
not exist
Total 90 100.0

Source: Research Data, 2017

Table 4.2 shows that most of the respondents of about 96.7 percentage equivalent to 87

respondents agreed that there are techniques used by Tigo to promote close relationship

36
between the Tigo and its Suppliers and a small percentage of the respondents of about

3.3% equivalent to 3 respondents disagreed that there are no techniques used to promote

supplier relationship.

These results show that, most respondents agreed that there are management techniques

that are used to nurture supplier relationships that exist between Tigo and its suppliers.

The respondents mentioned some techniques such as Chain Value understanding, two-way

communication, setting appropriate levels and Planning for uncertainties.

Table 4.3 shows the techniques that are mostly used by Tigo in nurturing relationship with

suppliers

Table 4. 3: Supplier relationship management techniques mostly used by Tigo

Frequency Percent
Value Chain understanding 50 55.6
Product levels 15 16.7
Communication 20 22.2
Uncertainty planning 5 5.5
Total 90 100

Source: Research Data, 2017

The results in table 4.3 indicates that 55.6% suggested understanding value of the chain

mostly used in managing supplier relationship,16.7% suggested setting appropriate

product levels,22.2% suggested two way communication as mostly used technique in

management of supplier relationship while only 5.5% of respondents suggested that

planning for uncertainty is mostly used technique in managing supplier relationships.

Therefore these results show that all these techniques are used in nurturing supplier

relationships but understanding the value of the chain and two way communication are

mostly used.

37
These findings are in line with the study of (Kamau, 2013) on the effect of supplier-buyer

relationship on performance of large manufacturing firms which revealed that there must

be good communication and collaboration among companies and suppliers for the

relationship to be beneficial to both parties.

4.4 Supplier relationship management impacts on supply chain performance

The existence of supplier relationship management has greatly impacted the performance

of Tigo’s supply chain and the organization as a whole. Improvement in performance can

be seen in terms of reduced operational costs, improvement in quality of goods and

services, on-time delivery of goods and services and so forth. All these has enabled Tigo

to keep in excelling in its operations in terms of increase in sales and new subscribers and

also supplier relationship management has enabled Tigo to maintain it’s good reputation

to its customers.

This study sought to find out the influence of supplier relationship management on

performance of Tigo’s supply chain. The study used three metrics which are cost, quality

and on time delivery in responding to this objective. In order to collect information of this

objective, sub questions were developed relevant to the objective. Therefore, in order to

determine the influence of the supplier relationship on the performance of Tigo’s supply

chain, the researcher presented the data based on the following subheadings;

4.4.1 Supplier relationship management and Cost reduction

Buyer-Supplier relationship has greatly contributed in improving operational efficiency in

terms of cost, quality and delivering goods on time. This is evidenced by the literature

reviewed of the report produced by (Macha,2016) in which the report revealed that before

implementing the effective suppliers relationship management, Tigo’s availability of

quality goods/ services was at the cost of 450Billions but after the application of SRM

38
the costs reduced to TZS205Millions TZS likewise the Cost associated with services

delayed was reduced from 200Millions TZS92 millions TZS55% and also the Cost

associated with after sale service dropped from 444Millions to 200Millions.This shows

tha SRM has an impact on cost reduction. This has been summarized in the table below

Table 4. 4: Contribution of SRM on cost reduction

Areas of procurement cost Estimated Estimated Percentage

reduction Cost before Cost After of cost
SRM SRM reduction
Availability of quality goods/ 450Billions 350Billions 23%
services at reasonable cost TZS TZS
Maintenance cost 400Millions 205Millions 49%
TZS TZS
Cost associated with services 200Millions 92millions 46%
delayed TZS TZS
Cost associated with access to new 444Millions 200Millions 55%
supplier
Cost associated with after sale 83Millions 50Millions 40%
service
Cost associated with holding 400Millions 288millions 28%
inventory TZS

Source : Tigo Report, 2016

To determine if the supplier relationship in the supply chain department reduces Costs of

Productions and Operations, the results of the findings were presented in figure 4.2 as

shown below

39
Table 4. 5: The relationship between supplier relationship management and cost

reduction in Tigo’s supply chain

Responses Frequency Percent

There is a relationship 67 74.4
There no relationship 23 25.6
Total 90 100.0

Source: Research Data, 2017

Table 4.5 indicates that 67.8 percentage of the respondents equivalent to 61 respondents

agreed that, supplier relationship has greatly contributed to cost reduction and a small

percentage of the respondents of about 32.2 % equivalents to 29 respondents disagreed

that the supplier relationship has not contributed to reduction of operational costs.

Therefore these results show that having good management of supplier relationships lead

to reduction of operational costs. These findings are in line with the study by (Nyamasege

and Biraori, 2015) on assessing the effect of supplier relationship on the effectiveness of

supply chain management practices. The findings showed that supplier relationship

management has an impact on reduction of operational costs and influences the

effectiveness of supply chain management practices in the ministry of finance.

4.4.1.1 Collaborative relationship and Cost reduction

To determine if the Collaborative relationship with suppliers helps Tigo to reduce supply

chain costs and hence improved supply chain performance, the results of the findings

were presented in table 4.11 as shown below

40
Table 4. 6: Collaborative relationship with suppliers’ versus cost reduction

Response Frequency Percent

Strongly agree 80 88.9

Strongly disagreed 10 11.1
Total 90 100.0

Source: Research Data, 2017

Table 4.6 shows that a significant number of the respondents of about 88.9 percentage

strongly agreed that the Collaborative relationship with suppliers helps Tigo to reduce

supply chain costs and hence improving performance of the supply chain because there

are few quality problems and a small percentage of the respondents of about 11.1 %

strongly disagreed that Collaborative relationship with suppliers helps Tigo does not

reduce supply chain costs and does not improve performance of the supply chain

management.

4.4.1.2 Supply chain areas in which costs have reduced as an impact of SRM

To determine areas of the supply chain in which there is cost reduction as an impact of

supplier relationship management, the results of the findings were presented in table 4.7.

Table 4. 7: Areas of supply chain in which there is cost reduction in Tigo

Responses Frequency Percent

cost associated with access to new
20 22.2
sources of the supplier
costs associated with the access to
20 22.2
new technology
cost associated with procurement
of the new technologies of network 40 44.4
operations
cost associated with after sales
10 11.1
services
Total 90 100.0

Source: Research Data, 2017

41
Table 4.7 shows that most of the respondents of about 44.4 percentage strongly agreed

that the costs associated with the procurement of the new technologies of network

operations have highly dropped, followed by the costs associated with access of the new

sources of the supplies and new technologies which both of them equivalent to 22.2 % of

the respondents and a small percentage of the respondents of about 11.1 % suggested that

costs associated with after sales services have also dropped.

4.4.1.3 Supplier relationship management provides a room for competitive

advantages

Competitive advantage is a circumstance that puts a company in a better position or

superior over the others. Through content analysis, the study conducted by TCRA(2016)

found that Tigo outperformed the rest of competitors such as Vodacom, Halotel and Airtel

in terms of net additions since 2014, adding more than 5mn subscribers, compared with

just over 2mn for Vodacom, and just under 2mn for Airtel subscribers. This resulted from

various company’s efforts such as a good relationship with suppliers which has helped to

improve operational efficiency in terms of cost reduction, timely delivery and quality

which has enabled the company to meet the customers’ expectations.

42
Figure 4. 1: Tanzania Telecommunication industry net additions- Q3 2015

Source, TCRA and Business Monitor International Limited, 2016.

To determine if the Buyers -supplier’s relationships provides a room for Tigo to

achieve the competitive advantages in the business environment/performance of the

supply chain, the results of the findings were presented in table 4.5 as shown below

Table 4. 8: Buyers -supplier’s relationships impact on competitive advantage

Response Frequency Percent

There is impact 85 94.4
There is no impact 5 5.6
Total 90 100.0

43
Table 4.8 shows that a significant number of the respondents of about 94.4 percentage

agreed that the Buyers-supplier relationships provides the room for Tigo to achieve the

competitive advantages in the business environment and a small percentage of the

respondents of about 5.6 % said that the Buyers -supplier’s relationships does not provide

a room for Tigo to achieve the competitive advantages in the business environment.

Therefore most respondents agreed that Buyers -suppliers relationships provides a room

for Tigo to achieve the competitive advantages in the business environment/performance

of the supply chain because the present supplier-buyer relationship between Tigo and the

suppliers which includes the Suppliers of the Voucher such as Rushabh TZ from

Tanzania and Ellams Ltd from Kenya as well as Morpho Cards which is located in South

Africa and Dz Card from Thailand that supply Simcards have great influenced Tigo’s

supply chain that is why the company has been able to compete well in the market and

gained more customers through offering quality products and services.

4.4.2 Supplier relationship management and Quality

Supplier relationship has great impact on the quality of the products supplied. To

determine the influence of SRM on quality products, below sub-headings are presented.

4.4.2.1 Involvement of the suppliers in new product development

To determine involvement of the suppliers by the organization in new product

development and value analysis from initial stage until final products is produced, the

results of the findings were presented in table 4.1 as shown below

Table 4. 9: Involvement of the suppliers in new product development

Response Frequency Percent

There is supplier involvement 88 97.8
There is no supplier involvement 2 2.2
Total 90 100.0

Source: Research Data, 2017

44
Table 4.9 indicates that most of the respondents of about 97.8 percentage agreed that there

is the Involvement of the suppliers by the organization in new product development and

value analysis from initial stage until final products is produced and a small percentage of

the respondents of about 2.2 % disagreed that there is involvement of suppliers in new

product development and value analysis in new product development. The respondents

that were interviewed were supply chain members such as Tigo’s suppliers, supply chain

managers, supply chain analysists, dealers, stock controllers who are involved in the daily

supply chain operations.

Supply chain team is involved from initial stages where by the needs for a product are

identified by the marketing team, proposed designs for the product are made and shared to

stakeholders of the supply chain then finally shared t the suppliers for production. Hence

there is great involvement of the team in new product development.

4.4.2.2 Supplier involvement has impact on quality management

To explain the impact of involvement of suppliers in product quality management, the

results of the findings were presented in figure 4.8 as shown below

Table 4. 10: Impact of suppliers’ involvement on quality management

Responses Frequency Percent

There is impact 85 94.4
No Impact 5 5.6
Total 90 100.0

Source: Research Data, 2017

Table 4.10 shows that a significant number of the respondents of about 94.4 percentage

equivalent to 85 respondents strongly agreed that involvement of suppliers in quality

management lead to improvement of quality of goods and a small percentage of about 5.6

45
% equivalents to 5 respondents strongly disagreed that involvement of suppliers in quality

management lead to improvement of quality of goods.

4.4.2.3 Criteria used by Tigo in evaluating quality of the supplied goods or services

To explain the Criteria used by Tigo in evaluating quality of the goods supplied, the

results of the findings were presented in table 4.8 as shown below

Table 4. 11: Criteria used by Tigo in evaluating quality of the goods or services

supplied

Criteria Frequency Percent

Performance 40 44.4
Reliability 20 22.2
Serviceability 20 22.2
Conformance 10 11.1
Total 90 100.0

Source: Research Data, 2017

Table 4.11 shows that a significant number of the respondents of about 44.4 percentage

strongly agreed that the evaluating quality of the goods or services supplied is based on

performance ,22.2 percentage who agreed that the evaluating quality of the goods or

services supplied is based on reliability, followed by 22.2% who said that evaluating

quality of the goods or services supplied by suppliers is based on the serviceability and a

small percentage of the respondents of about 11.1 % said that they evaluating quality of

the goods or services supplied is based on conformance.

4.4.2.4 Quality assurance processes versus supply chain performance

To explain if the processes involved in management of product quality on the suppliers’

side help Tigo’s supply chain and its operations, the results of the findings were presented

in figure 4.7 as shown below

46
Table 4. 12: Quality assurance processes and its impact on supply chain

performance.

Responses Frequency Percent

Specifications 40 44.4
Design, engineering and
20 22.2
products development
Inspections, testing and
20 22.2
examination
Packaging and storage 10 11.1
Total 90 100.0

Source: Research Data, 2017

Table 4.12 shows Supplier’s processes help in supply chain performance as per

percentages is as follows; Product specifications scored 44.4 of the respondent’s

percentages, designing, engineering and products development scored 22.2%, inspections,

testing and examinations scored 22.2% and packaging and storage scored 11.1%.The

result of the findings imply that most of the products produced meet the targeted industry

quality and they includes simcards such as 32k usim blank, 32usimkit blank,64usim

blank,64 usim kits and nanosimcards.

4.4.2.5 Quality of goods meeting customers’ expectations

To determine if the goods or services supplied help Tigo to meet the customers’

expectations, the findings were presented in table 4.9 as shown below

47
Table 4. 13: The impact of quality of goods or services in meeting customers’

expectations

Response Frequency Percent

Meet expectations 85 94.4
Do not meet expectations 5 5.6
Total 90 100.0

Source: Research Data, 2017

Table 4.13 shows that most of the respondents of about 94.4 percentage strongly agreed

that the Goods or services supplied help Tigo to meet the customers’ expectations because

the company delivers valued products to the customers at the required time, price, place

and few respondents of about 5.6 % strongly disagreed that the goods or services supplied

help Tigo to meet the customers’ expectations because there were few quality problems.

4.4.3 Supplier relationship management and On-time delivery

Time delivery plays a vital role in performance of supply chain. When products are timely

delivered, problems such a stock run outs or zero stock levels won’t be among problems

hindering supply chain performance. Through supplier relationship management, lead

times for delivering of goods are short. The study revealed that good management of

supplier relationship has impacted Tigo’s supply chain performance for example in 2015

when Tigo launched 4G or LTE networks, the 4G simcards where timely delivered and

were able to meet a great demand for 4G simcards in the markets.

To determine if good relationship with suppliers has an impact on on-time delivery of

products, the results of the findings were presented in table 4.9 below.

48
Table 4. 14: The impact of supplier relationship management on timely delivery of

products

Responses Frequency Percent

Strongly agreed 79 87.8
Strongly disagreed 11 12.2
Total 90 100.0

Sources: Research Data, 2017

Table 4.14 shows that a significant number of the respondents of about 87.8 percentage

strongly agreed that good relationship with suppliers has impact on on-time delivery of

products and a small percentage of the respondents of about 12.2 strongly disagreed that

good relationship with the suppliers has no impact on on-time delivery of products.

Table 4. 15: Contribution of SRM on timely delivery of products

Responses Attributes Before After SRM Frequency Percent

SRM
Average time for order approvals 14days 7days 48 53.3
and communication with suppliers
Average number of days for stock 60days 30days 20 22.2
to be received
Time it takes for stock to be 7days 3days 22 24.5
distributed to the market
Total 90 100

Sources: Research Data, 2017

The results of this study show that 53.3% of the respondents suggested that time has

greatly been saved on ordering approvals and communication with suppliers, 22.2%

suggested that time has been saved on the time it takes for goods to be received from the

supplier to Tigo while 24.5% of the respondents suggested that more time has been saved

49
on delivering the goods to the market. Therefore these results show that supplier

relationship management has great impact on timely delivery of products.

4.5 The impacts of the supplier relationship management on Tigo’s supply chain

performance

Basing on the discussed findings, the impacts of supplier relationship management on

supply chain performance can be summed up as follows;

Reduced costs

In most cases, c the initial set-up costs of contracts can be substantial, with deals taking

many months to complete. By concentrating on establishing and developing long term

relationships these costs can be offset, with both parties actively looking to avoid any

unnecessary costs which may arise from re-tendering, re-negotiating or being forced to

exit an existing contract early. Better relationships and increased interaction will lead to

less incidents or issues of poor performance, which in turn leads to lower costs for

managing the relationship and reduced costs that results from product failures.

Increased efficiency and communication

The deeper the information a company provides a supplier, the better their understanding

of the customers market, business and business processes will be. This will allow greater

integration of business, IT and financial processes alongside increased effective

stakeholder involvement from both parties. As a consequence the service will improve,

becoming more efficient, with “grey areas” disappearing and any issues that may arise can

be handled more effectively.

Pricing volatility mitigation

Price volatility is a sensitive issue for many procurement teams. It requires careful

weighting of price volatility against the contract length, volumes and the importance of the

50
procured product (or service) to the buying organization. For many companies it is vital to

establish how much volatility can be absorbed? Is it better to have a stable, high contract

price, or can the organization handle volatility in exchange for the chance of price drops?

Therefore supplier relationship management helps in handling the effects of price

volatility.

Supply Chain Consolidation

As supplier relationships develop, so does the buyers understanding of the supplier’s

business models, products and services increases. In return the supplier will develop an

increased understanding of buyer’s needs. This allows both parties to look for areas of

consolidation across existing products and services, as well as the potential addition of

potential new product and service offerings.

For buyers, consolidation allows for reductions in supplier numbers, creating a more

streamlined and efficient supply chain. This can reduce internal workloads and soft costs,

whilst providing increased opportunity to reduce costs through economies of scale and

leveraged spend.

Continual Improvement

Long term relationships provide the opportunity for buyers to engage suppliers in a

process of continual improvement of both products and services provided and of the

accompanying service levels. This can be achieved through product development,

development of new processes and procedures and through developing KPI’s and SLA’s

over the course of the contract. By taking an active approach to ensuring that contractual

performance is met, buyers can ensure that suppliers continue to improve in the ways

which provide the most substantial improvement to the customer organization's products

and services

51
 CHAPTER FIVE

CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter, presents the summary of the study which sought to investigate the impact of

supplier relationship management on supply chain performance in telecommunication

industry. The study was guided by specific objectives and research questions. This chapter

therefore, presents the summary of the research work, conclusions drawn from the study,

recommendations and areas for further research in relation to the data analysis

5.2 Summary of the findings

This study intended to examine the impact of supplier relationship management on supply

chain performance, a case of Tigo Dodoma. The specific objectives that were developed

in this study are to examine the supplier relationships that exist in Tigo, to examine the

supplier relationship management techniques that are practiced by Tigo and to determine

the impact of supplier relationships on Tigo’s supply chain performance.

In the literature review, it was observed that the impact of supplier relationship

management on supply chain performance in telecommunication industry as far as it

reduces the costs of operations, reduces the cost of the materials as well as it helped to

develop the relationship between the organization and its suppliers and agents as well as

distributors of the goods and service to the organization. The study has also found that

with supplier relationship management, quality of goods or services can be improved. This

is through good communication with supplier that’s provides a room for better

understanding of products requirements in terms of specifications, functionality and

performance of the products. Findings have also shown that Supplier relationship

management results to on time delivery of goods or services. Having a good relationship

with suppliers paves a way to short lead times on delivery of goods or services.

52
Descriptive research design was employed in this study. The targeted population

comprised of Supplies officers, 3rd Party Logistics Managers, Stock Point Controllers,

Dealers representatives, and Supply chain Analysts which makes a total number of 90

respondents.

5.3 Conclusion

The conclusions of the study findings are based on the following specific objectives as

follows;

5.3.1 Supplier relationships existing and its management techniques practiced by

Tigo

Finally it can be concluded that there are supplier relationship that exists and its

management techniques practiced by Tigo. Findings revealed that in Tigo there is the

collaborative relationship among the members of the supply chain such as Supplies

officers, 3rd Part Logistics Managers, Stock Point Controllers, Dealers representatives and

also they used the following techniques in managing the relationship where by the always

involve their bidders or suppliers in the early stage of developing their products and also

they share information’s to avoid the effects of the bullwhip in the supply chain

performance of Tigo, two-way communication, anticipating uncertainties and setting the

right product or service levels..

5.3.2 Impact of supplier relationship management on the performance of Tigo’s

supply chain

It can be concluded that the relationship that exists between Tigo and its suppliers has

positive impacts on the performance of supply chain due to the fact that the result of the

findings revealed that Tigo as a telecommunication company limited practices a

collaborative relationship with its suppliers, a collaborative relationship implies that there

53
is win –win outcome where by all members of the supply chain will benefits from both

parties and this concurred with the report of the (Bwari et.al, 2016) on the effects of the

third party logistics on the Supply chain performance. The purpose of the study was to

establish the effects of 3PL on supply chain performance in East African Breweries

Limited in which it was concluded that there is a positive and statistically significant

relationship between supply chain performance and inventory control, distribution

management, transportation management services provided.

Supplier relationship management has also resulted into various benefits such as reduced

costs, increased efficiency and communication in the deeper the information a company

provides a supplier, the better their understanding of the customers market, business and

business processes will be, pricing volatility mitigation which is a sensitive issue for many

procurement teams. It requires careful weighting of price volatility against the contract

length, volumes and the importance of the procured product (or service) to the buying

organization, Supply Chain Consolidation where it was revealed that as supplier

relationships develop, so does the buyers understanding of the supplier’s business models,

products and services increases. In return the supplier will develop an increased

understanding of the buyer’s needs and lastly Continual Improvement.

5.4 Recommendations

In the view of the study findings, the study recommends the following;

5.4.1 Planning of the inventory and management

This means that organization is advised to plan its inventory through inventory forecasting

and planning by Materials planning and scheduling because in the supply chain

management performance depends so much on the inventory flows of the organization.

54
5.4.2 Informational sharing

One approach in order to increase the performance of the supply chain is through the

information sharing among the supply chain members, to know the flow of the inventory,

order of the customers and avoid the bullwhip impact as a result of lack of coordination

and communication among the supply chain members.

5.5 Areas for further Research Studies

This study only focused on supplier relationship impact on telecommunication industry in

Dodoma region. There are so many factors that could impact the performance of supply

chain other than suppler relationship management. Some of the factors are such as

information and technology, strategic purchasing, honesty and commitment among the

purchasing members. Therefore other researchers may conducts studies in future to assess

on how these factors such as information and communication technology influence Supply

Chain performance in a Telecommunication Industry.

55
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 APPENDICES

Appendix I: Research Questionnaires

My name is Deborah Lutende a researcher from the University of Dodoma pursuing

Evening MBA carrying out a study on “The impact of supplier relationship
management on supply chain performance in Tigo Dodoma. This study is undertaken
as a partial fulfillment of the requirements for Award of Masters in Business
Administration (MBA) of the University of Dodoma.

I’m here by requesting for your precious time and cooperation on answering the following
questions that will assist me to prepare a research report. All the data collected from you
will be used for research purpose only.

Data obtained will be used for academic purposes only and care shall be taken to maintain
anonymity and confidentiality. At the end, kindly return the completed questionnaire to
the person who gave it to you.

In the question below please choose the right by putting a tick in space provided for the
closed question and explain and provides the details for the open ended questions

1. Is there any relationship between the organization and the supplier in building up the
effective performance of the supply chain of Tigo?
(a) Yes ( )
(b) No ( )

1. Is the present supplier –buyer relationship between the Tigo and the supplier influence
the performance of the supply chain?
(a) Yes ( )
(b) No ( )

2. What are the strategies used to manage the relationship between the supplier and
Tigo?.....……………………………………………………………………………………
…………………………………………………………………………………..
3. What are reasons that constraints the limiting success of buyer –supplier relationship
management to enhance the effective and efficient services provisions in the supply
chain management performance of Tigo?
……………………………………………………………………..

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4. Are there any benefits of involving the suppliers in earlier stage of the products
specifications?
(a) Yes ( )
(b) No ( )

5. What are the Benefits of involving the suppliers in earlier stage of the products
specifications?
…………………………………………………………………………………
6. Is the buyer –supplier relationships provide the room for the Tigo to achieve the
competitive advantages in the business environment/performance of the supply chain?
(a) Yes ( )
(b) No ( )

7. How is the effective buyer –supplier relationship enhance the performance of the
supply chain in Tigo?
………………………………………………………………….
8. Are there any techniques by Tigo to promote close relationship between Tigo and its
suppliers?
(a) Yes ( )
(b) No ( )

9. What are techniques used by the organization to promote a close relationship between
Tigo and its suppliers in the supply chain management?
(a) ……………
(b) …………....
(c) …………….
(d) …………….
(e) …………….
10. Do your organizations involve the suppliers in new product development and value
analysis from initial stage until final products is produced?
(a) Yes ( )
(b) No ( )

60
11. Is the supplier delivering the goods and services required by the organization within
the stipulated time in the contract?
(a) Yes ( )
(b) No ( )

12. Is the supplier and Tigo relationship management in performance of the supply chain
reduces the cost of production and operations?
(a) Yes ( )
(b) No ( )

13. Is the supplier –buyer relationship in the supply chain management of the Tigo
increases the operational efficiencies?
(a) Yes ( )
(b) No ( )
14. Are you aware of the effect of supplier relationship on supply chain performance?
(a) Yes ( )
(b) No ( )
15. How many suppliers of Scratch cards and simcards do MIC Tanzania Ltd has?
………………..
16. Does the company have collaborative relationship with the above suppliers?
…………….
17. Is there a two way information sharing with your suppliers?
……………………………………….
18. What kind of information do you share with your suppliers?
(a) Our needs ( )
(b) Their capabilities ( )
(c) Costs/Prices ( )
(d) Availability of products ( )
(e) Operation schedules ( )
(f) Financial arrangements ( )
(g) Product information ( )
19. Do you assist your suppliers to improve their performance?
(a) Yes ( )
(b) No ( )

61
20. Does the relationship with suppliers help in improving operational efficiency?
(a) Strongly Agree ( )
(b) Agree ( )
(c) Neutral ( )
(d) Disagree ( )
(e) strongly disagree ( )
21. Does a good supplier relationship have impact on product availability?
(a) Strongly Agree ( )
(b) Agree ( )
(c) Neutral ( )
(d) Disagree ( )
(e) strongly disagree ( )
22. Does a good supplier relationship have impact on on-time delivery of products?
(a) Strongly Agree ( )
(b) Agree ( )
(c) Neutral ( )
(d) Disagree ( )
(e) strongly disagree ( )
23. Among the following which areas of quality management do your suppliers help you?
(a) Specification ( )
(b) Design, engineering and product development ( )
(c) Inspection, testing and examination ( )
(d) Packaging and storage ( )
(e) Sales and distribution ( )
(f) Disposal after use ( )
(g) Marketing and market research ( )
24. Does the involvement of your suppliers in quality management lead to improvement
of quality of goods supplied by them?
(a) Yes ( )
(b) No ( )
25. Does the involvement of your suppliers in quality management lead to improvement
of quality of goods or services offered by Tigo to its customers?
(a) Yes ( )
(b) No ( )

62
26. What criteria does Tigo use in evaluating quality of the goods or services supplied by
suppliers?
(a) Performance ( )
(b) Reliability ( )
(c) Serviceability ( )
(d) Conformance ( )
(e) Durability ( )
(f) Features ( )
(g) Personal judgments ( )
(h) Perceived quality ( )
(i) Cost ( )
27. Are the goods or services supplied by your suppliers meeting your expectations?
(a) Yes ( )
(b) No ( )
28. Are the goods or services supplied by your suppliers helping you to meet your
customers’ expectations?
(a) Yes ( )
(b) No ( )
29. Does the company offer any motivation for employees to have learning over SRM?
(a) Yes ( )
(b) No ( )
30. How do you perceive relationship exists between your management and your
suppliers?
(a) Reasonable ( )
(b) Not reasonable ( )
(c) Unknown ( )
(d) no trust ( )
31. Does the collaborative relationship you have with above suppliers helps Tigo to
reduce supply chain costs?
(a) Strongly Agree ( )
(b) Agree ( )
(c) Neutral ( )
(d) Disagree ( )
(e) strongly disagree ( )

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32. Among the following in what areas have the supply chain cost reduced?
(a) Availability of quality goods/services at reasonable costs ( )
(b) Maintenance/rework costs ( )
(c) Costs associated with delayed services ( )
(d) Costs associated with access to new sources of supplies ( )
(e) Costs associated with access to new technologies ( )
(f) Costs associated with procurement of new methodologies of network operations ( )
(g) Costs associated with after sale services ( )
(h) Costs associated with holding inventory ( )
33. What was the cost before and after collaborative relationship basing on the areas
selected above?
(a) Before ( )
(b) After ( ) Percentage of reduction ( )

64
Appendix II: Interview Checklist
1. Is there any relationship between the organization and the supplier in building up the
effective performance of the supply chain of Tigo?
2. Is the present supplier –buyer relationship between the Tigo and the supplier influence
the performance of the supply chain?
3. What are the strategies used to manage the relationship between the supplier and
Tigo?
4. What are reasons which constraints the limiting success of buyer –supplier
relationship management to enhance the effective and efficient services provisions in
the supply chain management performance of Tigo?
5. Are there any benefits of involving the suppliers in earlier stage of the products
specifications?
6. What are the Benefits of involving the suppliers in earlier stage of the products
specifications?
7. Is the buyer –supplier relationships provide the room for the Tigo to achieve the
competitive advantages in the business environment/performance of the supply chain?
8. How is the effective buyer –supplier relationship enhance the performance of the
supply chain in Tigo?
9. Are there any techniques by Tigo to promote close relationship between the Tigo and
its suppliers?
10. What are techniques used by the organization to promote close relationship between
the Tigo and its suppliers in the supply Chain Management?
11. Do your organizations involve the suppliers in new product development and value
analysis from initial stage until final products is produced?
12. What are the problems of managing the supplier and buyer relationship in Tigo
13. Is the supplier delivering the goods and services required by the organization within
the stipulated time in the contract?
14. Is the supplier and Tigo relationship management in performance of the supply chain
reduces the cost of production and operations?
15. Is the supplier –buyer relationship in the supply chain management of the Tigo
increases the operational efficiencies?

65