STRATEGIC SUPPLIER RELATIONSHIPS MANAGEMENT AND SUPPLY CHAIN

PERFORMANCE IN NON-GOVERNMENTAL ORGANIZATIONS IN

SOUTHSUDAN:

A CASE STUDY OF MÉDECINS SANS FRONTIÈRES (MSF)

BY

NAME

INDEX NUMBER

A PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS ADMINISTRATION IN

PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF A
BACHELOR DEGREE OF PROCUREMENT AND LOGISTICS
OF NKUMBA UNIVERSITY

FEBRUARY, 2023
 CHAPTER ONE

INTRODUCTION

1.0 Introduction

The chapter addresses the background of the study, problem statement, purpose of the study,
research objectives, research questions, research hypothesis, scope of the study, justification and
the significance of the study.

1.1 Background of the study

This study was about strategic supplier relationships management and supply chain performance
in non-governmental organizations in South Sudan: A case study of Médecins Sans Frontières
(MSF).

Today’s economic environment is characterized by fierce competition and swift technological

development, resulting in both price pressures and compressed product life cycles. For firms, the
implications of these developments are that competitiveness based solely on low prices is
insufficient, and increasingly the cost focus must be complemented with an emphasis on value
creation, where innovations and new product developments are crucial. Due to these factors,
many companies have found that internal efficiency improvements are no longer enough.

1.1.1 Historical perspective

As today’s integrated supply chains require collaboration at many levels and from various
functions, executives are increasingly looking for innovative ways to leverage existing and new
supplier relationships for their expansionary pursuit. Supplier Relationship Management (SRM)
is one approach to connect the different interests both within the organization and with the
extended supply chain. SRM identifies and engages the right stakeholders to create ownership of
the relationship, drive effective communication and align strategic objectives. The result is a
foundation for continuous efficiency improvements, such as cost reductions, risk mitigation or
improved go-to-market times just as well as improved potential for disruptive innovation (Wee,
2009).
Global supply chain survey conducted by Price Water Coopers (2013) shows how Leaders are
moving ahead of the pack. They are tailoring their supply chains to customer needs and investing
in next-generation capabilities while keeping the focus on supply chains that are both fast and
efficient. Liker and Choi (2004) described, how Japanese automotive manufacturers, Toyota and
Honda, are deepening and developing their relationships with their suppliers, which leads to
mutual benefits for both, the customer and supplier. Park et al. (2010) studied a Korean
semiconductor manufacturing company and developed a framework for supplier relationship
management. Their framework integrates the supplier management functions, which are, shaping
purchasing strategies, supplier selection, collaboration, and supplier management. Additionally,
Park et al (2010), propose continuous improvement process to develop the SRM system.

Taking into account as aforementioned the significance of supplier relationship management, the
management of the SRM system is receiving attention (Stevens, 2011) and until in the recent
past, most of the attention has been on specific subjects such as purchasing strategy, supplier
selection, collaboration and development but studies have been meager on the relationship and
networking aspect (Field & Meile, 2008). Research that has been done in the recent past has
brought to view the fact that manufacturing organizations is a unit or actor in its own supplier
network. More specifically, the business of the company should be viewed from the perspective
of a network considering the product value they bring about has its origins in the upstream
network of suppliers (Stevens, 2011).

In the African continent, many organizations struggle to manage their supplier relationships
systematically. The main reason behind this is their lack of a clear framework with aligned
guidelines on supplier management. In traditional supplier relationships the interaction between
different functions of a company and its suppliers can be described as tactical and operational.
As a result relationships are lacking transparency not only from an external perspective, but also
with respect to internal governance and ownership of relationships. The presence of the effective
supplier relationship management is not a very developed in the African countries with the
organizations in the African continent mostly operating an arm’s length relationship in their
operations.

The advancement of technology, aggressive globalization, innovation and technology, and the
implementation of deregulation policies are among the drivers that have resulted in the
development of the relationship paradigm which seeks and establishes ways of creating long
term relationship between suppliers and customers (Muller, 2010).Supplier relationship
management in Somalia present issues of chaotic events that present a gap that need to be filled
for organizations to realize their potential in the management of organization (Mwirigi, 2011).

The means of the operations for the organizations in Somalia have existed in the operations with
a vast of them operating without any formal mechanism for the management of the resources and
the suppliers that are key in the delivery of the goods and services to the organizations. The
manufacturing organizations despite have a huge requirement in terms of the supply base have
committed less to the development of the relationships of supplier nature aimed at improving the
working stakes for the organization (Logistics index Somalia, 2015)

1.1.2 Theoretical Perspective

The study was guided by the Social Exchange Theory. This theory was established by George
Homans. It is founded on the fundamental idea that individual groupings interrelate with the
desire for remunerations and the evasion of punishments or penalties (Redmond, 2015). The
build of correspondence is very prevalent in the social exchange theory since the activity and
conduct of one party will prompt equal activity and conduct by the other party that is engaged
with the transaction.

Among the key premises of the theory is the significance of having trust and responsibility to
guarantee that the relationship is successful (Field & Meile, 2008). Homans defined the concept
of interaction as synonymous with the concept of social behavior. That, when an action emitted
by one person is rewarded or punished by the action issued by another person, then, regardless of
the type of emitted behavior, it is said that these two people have interacted (Zhao et al., 2008).

1.1.3 Conceptual Perspective

This section provides the definitions the independent variable and dependent variable. The
independent variable is strategic supplier relationship management and dependent variable
supply chain management.

The independent variable Supplier relationship management is a long-term strategic partnership

that embraces closer collaboration between the supplier and the buyer to achieve long term goals.
According to Global Intelligence Network (2013), supplier relationship management is a
collaborative partnership with the supplier which allows the buyer to manage the relationship for
the required goods and services. Weele (2000) explains that purchasing management refers to all
activities required to manage supplier relationships in the organization. He further declared that,
the idea behind purchasing management is that if suppliers are not managed by their customers,
customer relationships will be managed by the suppliers. Daves (2014) explained that a
successful supplier relationship management program will often create a trusting partnership
between a buyer and a supplier. Further to this Daves emphasized that hearty relationship creates
a healthier bottom line despite underlying weaknesses in their procurement activities. Supplier
relationship management is the process that defines how a company interacts with its suppliers.

Supplier Relationship Management (SRM) is a comprehensive approach to managing an

organization’s interactions with the firms that supply the products and services it uses (Lamming,
2005). SRM plays an important role in the reduction of costs and the optimization of
performance in organizations. SRM is understood as the sourcing policy- based design of
strategic and operational procurement processes as well as the configuration of the supplier
management (Appelfeller & Buchholz, 2005). SRM includes both business practices and
software and is part of the information flow component of supply chain management (SCM).
SRM practices create a common frame of reference to enable effective communication between
an enterprise and suppliers who may use quite different business practices and terminology. As a
result, SRM increases the efficiency of processes associated with acquiring goods and services,
managing inventory, and processing materials (McLachlin & Larson, 2011).

Supply chain performance is the examination of effectiveness and efficiency of the results of
procurement actions. The achievement of a agreed task is measured against predetermined
standards such as; cost, speed, flexibility, accuracy, completeness, quality of purchases, and
profile supplier (Jones and Oliver 2006). Indeed, supply chain performance is progressively
becoming an imperative factor in delivering efficient operations within prosperous companies
(Chase,Jacobs, and Aquilano (2008). According to Jones and Oliver (2006) various supply chain
performance measures such as; quality measures, price performance measures, cost performance
measures, time related measures, quality management (technology) measures, environment and
safety measures, asset management measures, administration measures, client fulfillment
measures, supplier performance measures and strategic performance measures brings supply
chain performance in performance of organization.

Firms without appropriate supply chain performance measures in their processes, procedures,
and plans, experience inferior performance, higher client dissatisfaction and employee turnover
(Amaratunga & Baldry 2002). The efficacy of the supply chain performance measures describes
how well the objectives of procurement are realized (Arun and Linet2005). Organizations must
improve its supply chain performance relationship in order to reduce costs, avoid supply delays
and improve overall procurement performance. To manage supplier chain performance
organizations can employ a variety of strategies such as, Supplier segmentation, SRM
governance, supplier performance management, and supplier development (Zimmermann, et al
2015; Chopra and Meindl 2013; Lysons and Farrington 2006).

1.1.4 Contextual Perspective

South Sudan hosts many Non-Governmental Organizations (NGOs) of different sizes. Dorine
(2017) posed a question referring to the NGOs; ‘who are these people accountable to? How do
we know that they are in any way representing or serving their clients?’NGOs are voluntary
organizations registered under the Non-Governmental Organization Co-ordination (NGOC) act
in South Sudan and are for non-profit and non- commercial.

MSF remains a major provider of medical care in the region. From sleeping sickness to cholera
and malnutrition, MSF continues to respond to emergencies throughout Bahr-el-Ghazal, Jonglei,
Western Equatoria, Unity, and Upper Nile states. MSF remains one of the largest health-care
providers in the region. MSF has worked in southern Sudan since 1983. In 2007, 137
international staff and 1,359 Sudanese staff were employed and MSF spent 19.76 million euros
providing medical care in the region.

Despite the signing of a peace agreement between North and South Sudan on January 9, 2005,
which ended decades of civil war, medical needs in southern Sudan remain overwhelming.
Outbreaks of disease and violence continue, while many people still do not have access to basic
health care, resulting in preventable deaths. In 2005, as the security situation seemed to be
stabilizing, some Doctors Without Borders/Médecins Sans Frontières (MSF) teams had planned
to hand over management and the running of many of their primary care health services to the
Ministry of Health or development-focused agencies, so that MSF could focus on secondary
level care, specific diseases, and responding to emergency outbreaks. Although MSF has handed
over some projects, a shortage of organizations willing or able to work in southern Sudan means
that MSF remains one of the largest health-care providers in the region.

MSF has worked in southern Sudan since 1983. In 2007, 137 international staff and 1,359
Sudanese staff were employed and MSF spent 19.76 million euros providing medical care in the
region.

1.2 Problem statement

Coordination in humanitarian organizations is often difficult because of the many groups

involved (military, government, NGO’s), and often inadequate infrastructure. Moreover, in
humanitarian supply chain, the “customer” is usually the donor or supplier of goods, rather than
the recipient of the aid the programme is designed to help. These donors must be sold by
showing the donation is being used properly. Although aid effectiveness as an operational goal
of humanitarian organizations is often criticized since it overlooks other goals such as equity,
this does not mean that efficiency should be discarded.

Despite these facts most organizations and especially NGOs are yet to appreciate the important
role of suppliers in improving supply chain performance (Zhao, et al., 2008). Doctors without
Borders/Médecins Sans Frontières (MSF) have a big procurement department with staffing of
over 10 members, but all of them are only dedicated to buying. The department does not have
dedicated staff to supplier relationship management and as such there are many cases of poor-
quality supplies, late deliveries, exaggerated prices which leads to poor customer service and
many complaints from the users (OAF, 2017). This is further complicated by lack of
management commitment to SRM issues as highlighted in the study by Sarkis and Talluri (2002)
where lack of high level management was found to be an impediment to supply chain success.

1.3 Purpose of the study

The purpose of the study was to examine the effect of strategic supplier relationships
management on supply chain performance in non-governmental organizations in South Sudan: A
case study of Médecins Sans Frontières (MSF).
1.4 Objectives of the study

i. To determine the role of strategic supplier sourcing on supply chain performance in

Médecins Sans Frontières (MSF).
ii. To examine the effect of strategic supplier development on supply chain performance in
Médecins Sans Frontières (MSF).
iii. To establish the influence of supplier collaboration on supply chain performance in
Médecins Sans Frontières (MSF).

1.5 Research questions

i. What is the role of strategic supplier sourcing on supply chain performance in Médecins
Sans Frontières (MSF)?
ii. What is the effect of strategic supplier development on supply chain performance in
Médecins Sans Frontières (MSF)?
iii. What is the role of quality management on supply chain performance in Médecins Sans
Frontières (MSF)?

1.6 Scope of the study

The scope of the study was divided into the content scope, geographical scope and time scope

1.6.1 Content scope

The study aimed at examining the effect of strategic supplier relationships management on
supply chain performance in non-governmental organizations in south Sudan: A case study of
médecins sans frontières (msf) mainly focusing on role of strategic supplier sourcing on supply
chain performance in Médecins Sans Frontières (MSF), effect of strategic supplier development
on supply chain performance in Médecins Sans Frontières (MSF) and role of quality
management on supply chain performance in Médecins Sans Frontières (MSF).

1.6.2 Geographical scope

The study was conducted at MSF emergencies throughout Bahr-el-Ghazal, Jonglei, Western
Equatoria, Unity, and Upper Nile states.
1.6.3 Time scope

This study covered a period of 4 years. Thus, between 2018-2021.The period provided an
adequate length of time to observe the variables that were investigated in this study

1.7 Significance of the study.

The research was important and useful in the following areas.

Non-Governmental Organizations (NGO’s) play a pivotal role in south Sudanese’s economy.

They contribute immensely in the areas of social development, civil advocacy, poverty
eradication and act as a catalyst to politic progression. This research will benefit several
stakeholders:

The study will come up with ways of improving strategic suppliers’ relationship and establish the
major pitfalls that have negative influence on the strategic suppliers’ relationship in the NGO.
The management stands to benefit from the information provided in the study as it will form
basis for evaluating the current situation and developing the necessary strategies that will work to
ensure efficient and effective strategic suppliers’ relationship management.

Strategic suppliers’ relationship management remains a crucial decision for public NGO’s as it
determines the efficiency and effectiveness of the firm. This study will thus be of help to other
institutions by giving information regarding the underlying factors affecting the strategic
suppliers’ relationship management. This study will provide a basis for which the organization
can review their tactics and with further give recommendations on the best way to conduct
strategic suppliers’ relationship management.

This study is important because it will contribute to knowledge and development of literature in
the subject area under investigation, and serve as a basis for further research for all those
interested in the topic. It will provide a framework for ensuring effective procurement practices
in non-governmental organizations and how effective project delivery through improved supplier
– buyer relationship could be achieved.

Other scholar seeking to understand the subject under study will also find it of great relevance as
it will shed light into the useful strategies, procedures and measuring instruments that are
essential to their undertaking. Scholars will use the researcher’s findings as a source of
knowledge and a base of filling gaps left during the study. This study will further help them to
avoid unnecessary duplication, demonstrate familiarity and form a framework within which
future research findings will be interpreted.

1.8 Arrangement of the study

A research study comprises of five chapters;

Chapter one; This chapter contains the background of the Study, problem statement, study
purpose, specific objectives, research questions, scope of the study and the significance.

Chapter two; This presents the study literature that includes the literature survey, literature
review and the conceptual frame work.

Chapter three; This contains the methodology that was used in conducting the study and
includes the research design, study area, study population, sample size, sampling method,
sampling techniques, data collection methods, data collection techniques, tools validity and
reliability, data processing, data analysis, ethical issues and the limitations of the study.

Chapter four; This presents the study findings as obtained from the field in line with the study
objectives.

Chapter five; This chapter contains the summary, conclusions and recommendations based on
the findings.
 CHAPTER TWO; STUDY LITERATURE

2.0 Introduction

This chapter shows what other scholars have written about strategic supplier relationship
management on supply chain performance. This chapter examines the theoretical review,
conceptual review, actual literature review and summary of literature. The review is done
through the use of the journals, articles and text books.

2.1 Theoretical Review

The study was guided by the following theories

2.1.1 Social Exchange Theory

This theory was established by George Homans. It is founded on the fundamental idea that
individual groupings interrelate with the desire for remunerations and the evasion of punishments
or penalties (Redmond, 2015). The build of correspondence is very prevalent in the social
exchange theory since the activity and conduct of one party will prompt equal activity and
conduct by the other party that is engaged with the transaction.

Among the key premises of the theory is the significance of having trust and responsibility to
guarantee that the relationship is successful (Field & Meile, 2008). Homans defined the concept
of interaction as synonymous with the concept of social behavior. That, when an action emitted
by one person is rewarded or punished by the action issued by another person, then, regardless of
the type of emitted behavior, it is said that these two people have interacted (Zhao et al., 2008).

2.1.2 Theory of Constraints

The constraints theory is a general administration philosophy presented by Eliyahu Goldratt in

his 1984 book titled Goal. It is inclined to help firms persistently accomplish their objectives.
The constraints theory is a management hypothesis that views any reasonable system as being
confined in achieving a more prominent measure of its goals by a very unassuming number of
objectives (Zeynep, Noyan & Ozalp, 2014). There is reliably at any rate one imperatives, and
TOC uses a focusing methodology to recognize the requirements and revamp the rest of the firm
around it. TOC grasps the ordinary saying a chain is no more grounded than its weakest
association (Zhao et al, 2008). This suggests firms, method, etc., are frail since the weakest
individual or part can for the most part damage or break them or perhaps unfairly impact the
outcome. The basic reason of the constraint theory is that firm can be estimated and constrained
by minor departure from three measures: throughput, operational cost, and stock (Gattorna,
Kampstra & Ashayeri, 2006).

2.1.3 Commitment Trust Theory

The theory commitment-trust in regard to the management of relationship posits that two key
variables, commitment and trust, must exist for a relationship to be fruitful (Christopher, 2004).
The theory was referenced by Annekie and Adele, (2004) in their book “Relationship Marketing
and Customer Relationship Management”. Relationship marketing includes shaping bonds with
vendors by fulfilling their needs as well as fulfilling responsibilities. Handfield and Nicholas
(2002) proposed that as opposed to pursuing transient profits, organizations following the
relationship marketing principles produce durable bonds with their vendors. Thus, vendors trust
these organizations, and the common unwaveringness enables the two parties to satisfy their
needs. Heikkila (2002) characterized trust as the certainty the two parties in the relationship have
that the other party won't accomplish something destructive or risky.

2.2 Literature survey

Bashir (2019) carried out the study examining the effect of supplier relationship management on
financial performance of organizations. The study objectives were to determine the effect of
supplier development on financial performance of manufacturing firms Somalia, effect of
supplier segmentation on financial performance in manufacturing firms in Somalia and to
examine the effect of information sharing on financial performance in manufacturing firms in
Somalia. The study was conducted in the manufacturing organizations of Mogadishu whose
financial performance had worsened; data was collected based on the questionnaires that were
administered to the staff of the manufacturing organizations who were 172. The study was based
on a descriptive research design were the research was presented in frequency, percentages,
mean, standard deviation and regression analysis. The study findings indicate that supplier
development had a 20.6% effect on financial performance of selected manufacturing
organizations in Mogadishu, the effect was also significant (Sig.0.035). Supplier development
had only 0.8% effect on financial performance of selected manufacturing organizations in
Mogadishu, the effect was insignificant (0.273) while information sharing had a significant 5.4%
effect financial performance of manufacturing firms in Mogadishu Somalia (Sig=0.041). The
study concludes that though supplier development is practiced to a certain extent, it has some
significant association with performance of the manufacturing companies, this imply that
improving supplier development can generate performance. On the second objective the study
concluded that supplier segmentation was existing and had low effect on financial performance
of the organizations given that it was less effective and managed on the third objective
information sharing showed statistically significant association with financial performance and
thus increasing information sharing were more likely to result in improved performance. The
study was carried out in Somalia while current study was carried out in South Sudan.

Agunda (2019) carried out a study on the influence of strategic supplier management on supply
chain performance of NGOs, a case study of One Acre Fund by looking at supplier sourcing and
supplier development. The study targeted management staffs comprising of three hundred and
forty management members at One Acre Fund in Kenya. The study used both stratified and
purposive sampling to come up with a sample size of one hundred and eighty-one respondents.
Simple random sampling was used to select individuals that participated in the study.
Questionnaires were used as instruments of data collection. The study concluded that the
strategic supplier management has a great impact on supply chain performance at One Acre
Fund. The study concluded that supplier sourcing and supplier development have a significant
influence on the performance of supply chain. The study recommended that the NGOs update
vendor list frequently with competent suppliers, embrace category management and supplier
collaboration. The study was carried out in non-governmental organization in Kenya while the
current study was carried out in non-governmental organization in South Sudan.

2.3 Literature review

The literature review will be based on the study objectives

2.3.1 Role of strategic supplier sourcing on supply chain performance

Strategic sourcing is a key for successful global supply chain management. As the core challenge
of supply chain management is the removal of barriers between the organization and its suppliers
and customers in order to maintain customer service excellence, financial position improvement,
and operational costs optimization, strategic sourcing emerges as an important factor to support
and integrate the suppliers into the supply chain intelligently. It promotes cross-functional, intra-
and inter-organizational integration (Chen et al., 2004) considering short- and long-term
orientation. Precisely, a purchasing team needs to ensure proper use of funds and resources while
defining the correct supply source of the business to achieve forecasted results. Additionally, it is
expected that purchasing executives will assimilate market innovations, extend market
communication and ensure supplier reliability.

Lysons and Farrington (2006), defines strategic sourcing as “concerned with the top- level,
longer-term decision relating to high – profit, high supply risk items and low-profit, high supply
risk bottleneck product and services”. It’s also concerned with the formulation of long-term
purchasing policies, supplier base, partnership sourcing, reciprocal and intra- company trading,
globalization and countertrade, the purchase of capital equipment and ethical issues. Sourcing
costs represent 40 to 80 percent of the cost of goods sold, and 30 to 50 percent of revenues – a
ratio that has remained constant in most industries for many years.

Companies excelling in strategic sourcing save almost 10 to 20 times as much as it costs to

operate their sourcing operations. The effort required to reduce 10 percent of the sourcing cost is
much less than gaining similar amount of revenue (Chopra and Meindl, 2003).

Traditional strategic sourcing methods urge executives to apply commoditization and

competition. On one hand, it is worth commoditizing goods and services using a matrix, and
trying to standardize complex negotiation (Vitasek, 2018) in order to reduce procurement
variability and try to increment procurement governance. Additionally, purchasing executive
performance is often measured by purchasing price variance, which leads to a myopic focus on
“price” only. It causes severe constraints on perceiving the overall value of the business, and it
blinds practitioners from identifying unknown costs and introducing changes and innovations
within the supply chain. The intent is to present an inverse approach. Instead of putting buyers
and suppliers in a conflicting arena with ambiguous goals, it is proposed that, by using the
correct tools, organizations can really share mutual gains.
Strategic sourcing involves taking a strategic approach to the selection of suppliers an approach
that is more aligned with the organization’s competitive strategy. Strategic sourcing reflects the
integration of procurement or sourcing strategy with corporate strategy (Porter 1998). The
integration of procurement and corporate strategy is reflective of the transformation of
purchasing to supply management. Strategic sourcing is a well-established and proven method
for managing large- scale, medium to long term procurement activities. It has been adopted as
standard practice by numerous public and private organizations in developed countries. It
consists of two key capabilities - strategic contracting and category management (Arrowsmith &
Trybus, 2003). In strategic contracting, the emphasis is on developing a detailed knowledge base
of the market and the category being sourced, and using this knowledge to develop optimal
sourcing solutions.

Sourcing strategically is concerned with top level, long term decision related to high profit, high
supply risk, strategic items and low profit, high simply risk bottleneck products and services. It is
also concerned with the formulation of long term purchasing policies; the supplier buys
partnership sourcing, reciprocal and intra-company training, globalization and counter trade, the
purchaser of capital equipment and ethical issues. In critical solving in viewed as a function
concerned with the placement of orders, while in strategic sourcing is viewed as knowledge
based activity concerned with the total cost of ownership rather than the price paid per item with
the optional mix of relationship to provide competitive advantage.

2.3.2 Strategic supplier development on supply chain performance

Supplier development is any effort a buying firm expends on a supplier to increase the
performance and capabilities of the supplier to meet the buying firm’s own short-term or long-
term supply needs (Krause, Handfield & Tyler, 2007). Supplier development is any effort or
attempt by a buying firm, that is the manufacturer with its supplier to enhance the performance
and/or capabilities of the supplier and in that way meet the manufacturers supply needs and
specifications (Ochieng, 2014).

Supplier development is the process of working with suppliers on one-to-one basis to improve
their performance to deliver quality materials that go a long way to benefit the buying
organization. CIPS has noted that supplier development appreciates regular feedback of the
supplier’s performance together with any customer complaints. A suggestion was also made by
CIPS that supplier tailored to the specific needs of the buying organization. It was also pointed
out that, supplier knowledge and technology can be leveraged through supplier development to
reduce cost and lower risk. Kocabasoglu and Suresh (2006) mentions four essential dimensions
of strategic sourcing which help organizations to maintain sustainable material levels. It is
suggested that, there should be effective internal coordination between purchasing function and
other department. Additionally, there should be effective information sharing among partners.

Arumugam (2012) suggested that Companies that have left their supplier development programs
at the background without fashioning it into their strategies are likely to lose opportunities that
abound in material activities.

Supplier development undertakings also lead to superior partnerships between buyers and their
suppliers as well as ways to efficiently and effectively utilize capital by incorporating “lean”
practices. Eliminating the waste of resources across the entire supply chain helps in making it
lean” and “green (Margolis, 2011). Working in close partnership with suppliers, to ensure that
the labor force get at least the required minimum legal wage and are properly remunerated for
overtime hours is a basic obligation. A direct impact in compliance enhancement can also be
attained without raising the product cost through supporting suppliers to advance their
productivity and quality.

In highly developed supplier development practices, time and accurate information is vital to
decision-making and eventually to performance. As a result, sharing top secret information with
suppliers is seen to correlate positively with the firm's general business performance.
Incorporating suppliers in the product design course gives them the chance to work with
purchasers to discover areas that can most efficiently and effectively be undertaken, thus
mounting purchasing performance. In addition, it has been supported that training suppliers
enhances supplier performance. Therefore, it should be anticipated that the execution of highly
developed supplier development would develop the supplier performance and/or capacities, and
ultimately, progress the buyer's purchasing performance (Sahay, 2013).

Supplier development is, in simpler terms, about providing regular and continuous feedback of
the supplier’s performance as qualified by the buyer’s organization, jointly with any client’s
complaints. This feedback can frequently, in and of itself, provide a key inducement for suppliers
to check and advance their performance, mainly in areas such as delivery consistency and lead
times (Frahm, 2013). This strategy can be further boosted by using the expertise in the buying
organization to expand the supplier’s capacities and hence augment the total added quality in
both products and services. Purchasing and supplies management ought to also be receptive to
the likelihood of taking up supplier know-how and aligning it to the buyer’s business objectives
and needs (Chan, 2012). A further benefit of this supplier development strategy is that the areas
selected for improved performance or capacity are customized to the particular needs of the
buying organization, and this alignment makes sure that the gains feed directly through into the
buyers’ products and services, enabling them to be even extra competitive in their own market
place.

According to Douglas & Mattew (2012) argued that suppliers directly impact, either positively or
negatively, on the cost, quality, technology, delivery, flexibility and profits of the firms that
incorporate the suppliers’ out into their final products. However, Sugar Corporation of Somalia
Limited reports a need for supplier improvement in the areas of quality, costs, delivery,
innovation and product design. Suppliers are developed with the aim of upgrading their
capacities and capabilities in order to meet the purchaser’s short and long term needs among
which provision of high quality is considered as part of buyer-supplier needs. Supplier’s
development has reported higher quality levels and improvement in the relationship between
buying firms and suppliers as the result of these efforts.

A study conducted by Rand Corporation on how Supplier Relationship Management has been
practiced in the Air Force Material Command in USA, discussed how organizations can better
pursue SRM and realize its goals by expanding the supply base to include all suppliers as
incentive to improve and also develop an integrated supplier scorecard (Rand 2013). The report
by Nelson et al. (2005) in the same studies revealed that investment in supplier development paid
off in multiples of three and ten over a period of time. It also came out from their study that, it is
important to institutionalize SRM by maintaining a sustained support from top management
down the organizational structure and to clarify roles and responsibilities of individual team
members while taking them through formal training to keep pace with best practices. Increased
reliance on suppliers for basic raw materials and capital products depend on how capable
external suppliers are ready to meet buyer requirements. According to Mollahosseini and
Barkhordar (2010) argued that there has been the realization that suppliers are strategically made
part of the buyers’ business and it is therefore not surprising to see buying firms involving their
suppliers at the design stage of their products so that specified quality and quantity are supplied
to avoid legal battles.

Supplier development program to promote business in the country to strengthen competition

amongst stakeholders with the aim of contributing to the country’s economic development. In
formulating supplier strategies, it is important to exchange experiences and also learn from “best-
practices. Wheele (2012) has mentioned that, major firms like Shell Coca-Cola have
continuously developed their suppliers. These companies are reported to have identified
commodities that deserve to be sponsored through supplier development arrangement,
(commodities to spend the most money).

2.3.3 Role of supplier collaboration on supply chain performance

Collaboration with suppliers and customers is the fourth pillar along the pathway to building a
strategy to deliver supply chain excellence (Slone Reuben 2004). Supplier collaboration means
working with decision-makers at a supplier level to determine improvements that can be made
that will have a measurable, positive financial impact for both organizations. An example of
supplier collaboration would be jointly redesigning a product that a supplier custom
manufacturer for your organization.

Pacheco & Rodrigues, (2010) states that, in order to prepare a business world with rapidly
changing markets and customer demands, strategically rethinking manufacturing and supply
chain strategies has become standard practice in order for firms to succeed. Often, margins of
manufacturers and suppliers are razor-thin due to the traditional adversarial approach from the
manufacturer based on "just getting the best price" from suppliers. (Amuhaya, 2014). This
approach creates short term relief and does nothing to truly improve either party’s competitive
position. High commodity volatility continues to create a roadblock in supply and demand and is
increasing the strain on manufacturers and suppliers. Without a win-win manufacturer/supplier
relationship, pricing and production remain difficult. (Siddiquei, 2015).
Collaboration in inter-organizational relationships is often hampered by poor communication
(Dyer et al., 2001). According to Amabire, (2001) organizations must set up procedures such as
communication and coordination of processes for collaboration. He further opines that not all
communication mechanisms, however, are equally effective or efficient. A continuum of media
richness has been proposed for various modern modes of communication ranging from person to
person meetings for standardized data transfer, such as electronic data interchange (EDI).

Plane and Green (2011) conducted a study on Buyer-supplier collaboration and the aim of
Facilities Management procurement. The study established that there emerged a consensus that a
more relational procurement process has a positive influence on the relationship established and
also that the perceived benefits of relational approaches included clarity of service requirements,
value delivery, and cultural alignment. This study, however, did not show how buyer-supplier
relationships affect organizational performance.

Amuhaya, (2014) concluded that buyer/supplier collaboration enhances procurement

performance hence creating a competitive advantage through sharing information making a joint
decision, inter-organizational relationship. This indicates that the level of supply chain
collaboration has an important interaction effect on the relation between external resources and
buying firm performance, where collaborative forms of buyer-supplier exchange facilitate
greater access to external resources. The findings are a pointer to the responsiveness; flexibility,
commitment and the belief of the trading partners are willing to devote energy to sustaining the
relationship.

Collaboration is the joint activities between the partners in the supply chains. Gunasekaran et al.
(2015) referred Supply chain collaboration as the relationship developed for a long time between
supply chain members with a view to lowering cost and risk as well as improving quality and
market value. In a basic supply chain upstream partners of a focal company are suppliers and
downstream partners are customers. Supplier collaboration are the activities of collaborative
relationship between the focal firm and its suppliers in order to maximise SC related
performance. Buyers to a great extent depend on its supplier’s resources including advanced
know-hows, manufacturing competence, engineering expertise and financial backing (Yan and
Dooley, 2014). Simultaneously, suppliers also depend on buyer firms for product knowledge,
market needs, customer expectation and so on. So, it becomes critical for firms to collaborate
each other to obtain access and exploit mutual resources to initiate certain practices. Yan and
Dooley (2014) claimed that collaboration facilitates knowledge creation through internalizing
partner’s knowledge. To enhance environmental sustainability partner firms, influence each
other’s resources and activities to exploit learning and knowledge sharing opportunities
(Grekova et al., 2015). Supplier collaboration however are not always effective for improved
performance (Kopfer et al., 2005; Yan and Dooley, 2014) due to lack of communication,
mutually supportive environment and mutual decision making.

Whether supplier collaboration helps improve GSCM practices is inconclusive in the literature.
However, suppliers are the crucial entity to green an organization’s SC. To initiate
environmental practices in operations, it becomes essential to collaborate with suppliers. Chiou
et al. (2011) claimed that long time strategic benefits can be secured through collaborating with
suppliers. Kopfer et al. (2005) found that supplier collaboration has positive effect on firm
performance in terms of innovative capability and financial results considering relational
constructs trust and dependence as the key elements for supplier relationships. Chiou et al.
(2011) highlighted that firm supplier’s integration in the product innovation can enhance firm
performance. However, establishing a relationship requires time, resources, information and
knowledge sharing ability from both parties.

In the academia it is demonstrated that the most vital source of novel ideas and information are
the relationships. Collaborative relationship helps firm share their tacit and explicit knowledge
and enhance knowledge creation and innovation with the suppliers (Kopfer et al., 2005; Yan and
Dooley, 2014; Grekova et al., 2015). Collaboration can reduce buying cost through minimizing
contracting cost, instant communication, enhanced coordination and mutual operational problem
solving approach. Key suppliers can have significant impact on overall wellbeing of focal firm
(Kopfer et al., 2005). As knowledge sharing become more frequent and inevitable in supplier
collaboration; so trust, openness and transparency become fundamental. Supplier opportunistic
behaviour is minimized when mutual trust exists and thus reduces purchasing cost through
enhanced coordination, information sharing and process dependence. Collaboration with
suppliers enhance some challenges for the firm including level information sharing, level of
dependence, organization size and location, organizational values, cultural diversity and goal
 congruence between the firms. For this reasons, many organizations have tried to solve this type
of SCM related strategic problems through mutual collaboration with its suppliers.

2.4 Conceptual Framework

Conceptual framework is a diagrammatic representation of concepts of variables that shows the

interconnections between the independent, intervening and dependent variables. Orodho (2012)
defines a conceptual framework as a graphical or a diagrammatical model of presentation of the
connection between the study variables. It is a road map that the study intends to follow with the
aim of looking for answers to the problems raised by the research questions. According to
Kothari (2011), a variable is a measurable characteristic that assumes different quantitative
values among the subjects. Linked to the statement of the problem, conceptual framework
creates the base for presentation of the specific research question that steer the analysis being
reported (Shields & Rangarjan, 2013). Its purpose in this study is to help the reader to quickly
see the relationship between strategic supplier relationship management and supply chain
performance in Non-governmental organizations in South Sudan with doctors without borders as
the case study.

Independent Variables Dependent Variables

Strategic supplier relationship management
Supply chain performance
 Strategic supplier sourcing
 Strategic supplier development  End user satisfaction
 Strategic supplier collaboration  Delivery Lead time
 Procurement Costs
 Quality supply
Intervening Variable
 Organizational policy
 Economic factors
 Political climate

Figure 2.1: Conceptual framework

Source: Adopted from the literature and modified by the researcher (2023)
The conceptual framework above shows the relationship between the independent variable,
which is ‘strategic supplier relationship management, and ‘supply chain performance’ as the
dependent variable. Strategic supplier relationship management is reflected in terms of strategic
supplier sourcing, strategic supplier development and strategic supplier collaboration. On the
other hand, supply chain performance’ as dependent variable as depicted in Fig 1 above was
measured using end user satisfaction, delivery lead time, procurement costs and quality supply.
 CHAPTER THREE: METHODOLOGY

3.1 Introduction

This chapter focuses on the research methods and procedures that were used to get the data for
study. It covers the research design, study population, sample selection and size data collection
and data analysis. It also brings out the limitations of the study.

3.2 Research Design

The researcher adopted a case study and a cross sectional research design in order to gather
information for in-depth analysis and contextual understanding of the research problem
(Saunders et al., 2003). A case study was used because it provides insights that might not be
achieved by other approaches (Rowley, 2002). Cross sectional study design was chosen because
particular data was collected within a specified period of time to answer research objectives and
questions. The researchers also used both quantitative and qualitative approaches in data
collection and data analysis to provide thorough and broader findings (Kothari, 2004).

3.3 Study Population

The target population consisted of 80 staff of Médecins Sans Frontières (MSF) who were
interviewed from different department and capacities for instance top level management (02),
Accounts department (02), procurement department (10), stores management (04), transport and
logistics management (06) and other staffs (56).

3.4 Sample Size

Sampling is the process whereby a researcher chooses part of the population to be investigated
and not the entire population (Saunder et al, 2003). The elements for the study were obtained
from the survey population of 80 and it was 50 employees of Médecins Sans Frontières (MSF).
The distribution of the population and sample is presented in table 3.1.
Table 3.1: Summary of the population sample composition

Department Population Sample Size Sampling techniques

Top level management 06 04 Purpose sampling
Accounts department 02 02 Census sampling
Procurement department 10 08 Simple sampling
Stores management 06 04 Simple random sampling
Transport and logistics management 6 05 convenient sampling
Other staffs 56 27 Simple random sampling
Total 80 50
Source: Primary data
3.5 Sampling procedures

The researcher used varieties of sampling which include purpose, simple random, convenient
sampling and census sampling.

3.5.1 Purposive sampling

Purposive sampling involved selecting a certain number of respondents based on the nature of
their work in relation to accounting procedures. This method was appropriate because the sample
selected comprised of informed persons who could provide data that was comprehensive enough
to gain better insight into the problem.

3.5.2 Simple random sampling

Simple random sampling involved selecting respondents from the population listing by chance.
In this way, every member has an equal chance to be selected. The main disadvantage of this
method is with the bias which it could diminish the integrity of random selection but this was
overcome since the population listing involved only members with relevant information.

3.5.3 Census sampling

Census was used to select respondents from accounts department. According to Kothori (2004)
“census is when all elements in the population listing are considered.” Since no element is left
out usually high accuracy is achieved.

3.6 Data types

The study used both primary and secondary data

3.6.1 Primary Data

This data is obtained from the source-. This is used where one requires specific information
which does not exist elsewhere or in another form or when the topic is researched on for the first
time. The researcher collected primary data through going to the field and following the
systematic and established procedures as suggested by Fowler (1988).

3.6.2 Secondary Data

Secondary data is the one obtained from sources which already exist about high population
growth rates and those that have been used before. This was obtained from the annual reports,
magazines textbooks, internet and several related data bases. A substantive amount of
information was also collected from Newspapers-Articles and journals. As Trochim (2002)
Articles argues, secondary data provides a comparative tool for the research. This helped to
compare existing data with raw data for purposes of strategic supplier relationship management
and supply chain performance. The researcher collected information from both external and
internal sources.

3.7 Data Collection Methods

Choosing methods that empower the researcher is important because they allow for a deeper
understanding and the complexities and challenges the unequal power relations. Interviews,
administered Questionnaires and reviewing of existing data were used.

3.7.1 Interviews

This is person to person verbal communication where the interviewer asks the interviewee
questions intended to elicit information (Saunders, and Thornhill, 1997). The purpose is to
collect information that could not be directly observed and to further capture the meaning beyond
words that a questionnaire will not be able to capture. Here the researcher engaged selected
clients to face to face interviews and transcribed their responses, analyze their content in relation
to the themes of the study and this is the best method to capture such information because it
helped to clarity unclear questions (Mugenda & Mugenda, 2003) Interviews provided qualitative
data which was backed up with the quantitative data collected using questionnaire survey.
3.7.2 Survey method

A questionnaire is simply a "tool" for collecting and recording information about a particular
issue of interest. It is mainly used to capture quantitative information about population. Self-
administered questionnaires (SAQ) were provided by the researcher to identify and select
respondents. The respondents were given a week within which to answer the questionnaires
which were then collected by the researcher. The SAQ were used because it allowed in-depth
research, to gain first-hand information and more experience over a short period of time (Fowler.
1982). Structured questionnaires were used to collect data from all the respondents since the
study was concerned with variables that could not be directly observed such as views,
perceptions and feelings of the respondents.

Self-administered questionnaires were given to respondents who are literate and the interviewer
administered questionnaires by interviewers to respondents who are illiterate. Research assistants
were provided with clarification on questions which the respondents in problems to understand
(Fisher, 2007).

3.7.3 Documentary Review

In the secondary analysis of qualitative data, good documentation cannot be underestimated as it

provides necessary background and much needed context both of which make re-use a more
worthwhile and systematic endeavor. Documentary review is the reviewing of already existing
documents (Mugenda. & Mugenda. 2003). Documentary review consisted of reviewing a variety
of existing sources such as budgeting published and unpublished documents, various
publications, magazines and newspapers reports, historical documents and other sources of
published information. According to Sekanm. (2000) secondary data is helpful in the research
design of -subsequent primary research and provides a baseline with which the collected primary
data results are compared to. One of the key advantages of using documents in research include
the fact that such research is relatively low cost, particularly when the documents are easily
accessible and already located in your workplace, or on the internet. Documents vary a great deal
in quality can be extremely detailed and yield much more information than you could hope to
gain from a questionnaire or interview.
3.8 Data collection procedure

An introductory letter was obtained from the University administration. The researcher collected
both quantitative and qualitative data using questionnaires and interviews. Data was collected
within a period of two months from the time of approval of the proposal.

3.9 Data Collection Instruments

Research instruments or tools are ways of gathering data. Without them, data would be
impossible to put in hand. Therefore, the researcher used different instruments in this study.

3.9.1 Self-administered questionnaire

Self-Administered Questionnaire is a form containing a set of printed questions: submitted

personally by the researcher to people to gain statistical information (Trochim. 2010). A
personally administered questionnaire was used to help the researcher collect data within a short
time. This instrument was appropriate because it was affordable and never required much time
and skills. Close ended questions were formulated using a five likert scale mainly strongly
agree=5, Agree=4, Not sure=3, Disagree=2 and strongly disagree=1 to collect data from valid
respondents.

3.9.2 Interview guide

Tie interview is a face to face session with the respondent where questions are put to the
respondents who are free to answer according to the way they perceive the questions, the
researcher used an interview guide containing questions drawn along the themes of the study and
carried out through individual discussions with the selected members to represent others. The
most important thing about employing interview guide is that the accuracy and dependability of
the answers given by the respondent were checked by observation and probing. Face to face
discussions was conducted by the researcher together with the respondents in order to get the
information needed for the study.

3.9.3 Documentary review checklist

This was used to analyze various documents that were relevant to research topic under
investigation.
3.10 Validity and Reliability

The following are the validity and reliability of the research tools to be used in the research

3.10.1 Validity

Validity is the ability to produce findings that are in agreement with theoretical or conceptual
values, in other words, to produce accurate research results (Fowler, 1988). The study adopted
content validity which refers to the degree to which data collected using the particular
instruments actually measures or is specifically related to the variables for which it is designed.
The researcher achieved this by ensuring that questions or items in it conform to the study's
Conceptual Framework. Relevance, wording and clarity of the questions or items in Hit-
instrument also are evaluated by both the researcher and the supervisor. To enhance content
validity instruments were pre-tested by carrying out interviews with members of the society. This
ensured clarity of the questions to the respondents.

3.10.2 Reliability

According to Cochran (1963), Reliability is the requirement that the application of a valid
measuring instrument to different individuals and groups under different sets of circumstances
resulted in the same conclusions. In order to promote the reliability of this research, the
following controls were incorporated into the research design: Assurance of enormity Individuals
were required to put their names on the answer sheets and establishing rapport. A letter
explaining the rationale behind the questionnaire and what would happen with the result

The researcher also examined the content of the interview questions to find out the reliability of
the instrument. The researcher excluded irrelevant questions and change words that deemed
difficult by the respondents, into much simpler terms.

3.11 Data Processing

Qualitative data was processed through editing, coding and content analysis for purpose of
creating categories and making appropriate deductions. Quantitative data was processed in terms
of frequencies. The data was then categorized into the computer program.
3.12 Data analysis and Presentation

Quantitative data was analyzed using the Microsoft excel to generate frequencies and
percentages on the various responses. Tabulation and use of charts were used for purposes of
presenting data inform of frequencies and percentages. The descriptive statistics was used to
assess the dependence of one variable on another. This was intended to summarize data in a
meaningful way such that patterns emerge from the data and inferential statistics measures was
used to allow the researcher to make generalization about the populations from which the
respondents are drawn. Qualitative data was analyzed through content analysis from responses
related to the themes of the study.

3.13 Ethical Considerations

The purpose of this research is to promote the aims of this study, such as knowledge, truth and
avoidance of error. For example; the research focused on prohibiting against fabrication of data,
plagiarism, falsifying and fraud and misrepresenting the research findings. Aspects to do with
honesty, objectivity, confidentiality and integrity during data collection and reporting research
findings was abided to by the researcher during the whole process. Clearances were sought from
university research coordinator while consent of the respondents was sought from them before
administering to them the questionnaires and interview guides.

3.14 Study Variables and their measurement

The researcher used a 5-point like scale to measure the responses across all the variables as
illustrated below i.e. Strongly Disagree (1), Disagree (2), Not Sure (3), Agree (4) and Strongly
Agree (5).

3.12 Limitations of the Study

The study was affected by the nature of the required data. It is difficult to get the exact data
especially in terms of costs as this data is regarded confidential and therefore affect information
gathered especially on budgeting issues

The other limitation of the study is the resources both in terms of finances and time. This
affected the time schedule for research completion.
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APPENDIX 1: SELF ADMINISTERED QUESTIONNAIRES (SAQs)

Dear respondent,

I am a student of Nkumba University undertaking a Bachelor’s Degree in procurement and

logistics management. Currently I am carrying out a research study on “strategic supplier
relationship management and supply chain performance in Nongovernmental organizations in
south sudan with Doctors without borders as the case study” as part of the requirements for a
ward of Bachelor’s Degree of procurement and logistics management of Nkumba University.
This questionnaire is therefore intended to seek information on the above subject matter. The
information is purely for academic purposes and all the answers will be handled with utmost
confidentiality. I therefore humbly request that you complete this questionnaire correctly in the
spaces provided or options given. (Please, tick the appropriate answers where options are given).

Tick the appropriate

Section A: General Information

1. What is your gender?

Male Female

2. In which age group do you lie?

Between 20-30 years Between 30-40 years

Between 40-50years Above 50 years

3. What is your marital status?

Married Single

Separated Widow

4. What is your highest status?

Certificate Diploma

Degree others (specify)

For the subsequent sections you are requested to tick the appropriate

Section B: Influence of strategic supplier sourcing on supply chain performance in (MSF)

No Opinion SD D N A SA
5. The vendor list is frequently updated
6. There is a national prequalification exercise at least annually
7 The list of prequalified vendors is available on the organization’s
website
8 The organization considers suppliers as key partners in business
9 The organization uses supplier collaboration and partnership as a
sourcing strategy
10 The organization does not blame the suppliers for failures in the
supply chain processes
11 The vendors are categorized as per the organizational needs and
based on the nature of items they supply

Section C: Influence of strategic supplier development on supply chain performance in

(MSF)

No Opinion SD D N A SA
12. Supplier development practices are well described in
Médecins Sans Frontières (MSF) procurement manual
13. Médecins Sans Frontières (MSF) normally organizes to
meet with the suppliers periodically as a way of
strengthening supplier relationships
14 Suppliers who understand Médecins Sans Frontières
(MSF) vision and mission supports the organization much
better
15 Suppliers are paid on time without necessary waiting for
credit period to lapse
16 Suppliers who are rewarded due to their good performance
are more motivated and offer better services
17. Suppliers are sometimes paid in advance either fully or as
per agreed on percentages
18. High level management supports and encourages supplier
development activities like supplier trainings, incentives
Section D: Influence of supplier collaboration on supply chain performance in (MSF)

Qn Opinion SD D N A SA
19 Organization and its trading partners keep each other informed
about events or changes that may affect the other partners
20 Supplier collaboration supports the visions and missions of the
organization and gives the organization a competitive advantage
21 Organization actively involves its key suppliers in new product
development
22 Organization and its trading partners exchange information that
helps the establishment of business planning
23 Information exchange between organization and its trading partners
is adequate
24 Organization delays final product assembly activities until customer
orders have actually been received
25 Organization’s trading partners share business knowledge of core
business processes with your organization
APPENDIX 2: INTERVIEW GUIDE