Supplier development strategies and organizational growth at Igara Growers Tea Factory ltd Bushenyi district, Western Uganda

Abstract

The objective of the study was to investigate the effects of supplier development strategies on the organizational growth at Igara Growers Tea Factory Ltd, Bushenyi District. The study was guided by the following objectives: 1) To assess the effects of supplier training on the organizational growth at Igara Growers Tea Factory Ltd, Bushenyi District. 2) To establish the effects of supplier information sharing on the organizational growth at Igara Growers Tea Factory Ltd, Bushenyi District. 3) To analyse the effects of supplier cost management on the organizational growth at Igara Growers Tea Factory Ltd, Bushenyi District. A population which a researcher generalized the results of research study included 120 Igara Growers Tea Factory ltd Staff and 3454 medium and large scale farmers who were the suppliers of the green leaf (Igara Growers Tea Factory ltd Annual Report, 2015). Using Krejcie & Morgan sample size table, the sample size was 346. The study results showed a positive relationship between supplier training and organizational growth at Igara Growers Tea Factory Ltd, Bushenyi District. Majority of the respondents (68.9%) agreed that there was continuous improvement program for suppliers to ensure improvements to quality, service, and productivity, while (59.7%) agreed that there was a strong company’s policy to train suppliers and staff had skills that lead to accurate in time management and product handling (55.7%). The study recommends the need for manufacturing firms to develop clear supplier development programs. This will enable firms to engage in activities that improve the performance of suppliers thus resulting in better growth of these firms.