E-procurement, buyer-supplier collaboration and supply chain performance in food and beverage processing companies in Kampala

Abstract

Following evidence of poor supply chain performance in food and beverage processing companies in Kampala, this study was initiated to examine the relationship between e- procurement, buyer-supplier collaboration and supply chain performance in food and beverage processing companies in Kampala. The objectives included; to establish the relationship between e-procurement and supply chain performance, e-procurement and buyer-supplier collaboration, buyer supplier collaboration and supply chain performance and to explore the mediating role of buyer-supplier collaboration in the relationship between e-procurement and supply chain performance in food and beverage processing companies in Kampala. The study used a cross sectional research design following a quantitative approach. The units of analysis were food and beverage processing companies in Kampala. The units of inquiry were procurement personnel in the procurement/supply chain department from each of the different firms selected The population was 200 food and beverages processing companies in Kampala with a sample size of 132 firms determined basing on Krejcie and Morgan (1970) using simple random sampling to limit bias and ensure representativeness. The study revealed that there was a significant and positive relationship between e- procurement and supply chain performance, there was a significant and positive relationship between e-procurement and buyer supplier collaboration, there was a significant and positive relationship between buyer supplier collaboration and supply chain performance. The regression model indicates that e-procurement and buyer supplier collaboration together predict 55.4% of the variation. The regression model was also found to be well specified, meaning that the model fits the relationship. Of the two variables, buyer- supplier collaboration was the most significant predictor of supply chain performance compared with e-Procurement. Still, buyer-supplier collaboration was revealed to be a significant mediator of the relationship between e-procurement and supply chain performance. The study concludes that harmonizing e-procurement and buyer-supplier collaboration enhances supply chain performance. The research recommends that to improve supply chain performance there is a need for all decisions involving suppliers and buyers at a business to business level must be jointly made, food and beverage companies should bundle together small orders and deliver them as a batch, adequate sharing of non-confidential information between the buyers and sellers to ensure better supply chain performance.