Factors influencing selection of suppliers of packaging materials: a case of GLAXOSMITHKLINE

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dc.contributor.author Jowi, Martin
dc.date.accessioned 2019-07-29T09:00:05Z
dc.date.available 2019-07-29T09:00:05Z
dc.date.issued 2007
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4660
dc.description A Research Project Report Submitted to Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA) en_US
dc.description.abstract Packaging materials are critical to GlaxoSmithKline (GSK) in meeting its business goals and objectives. They carry brand identities like symbols, colours, images, logos and signs. The purpose of this study was therefore to establish the factors that influence GSK when selecting suppliers of packaging materials that would enable it fulfil its business requirements in the competitive market place and thus maximise profits and the shareholders' wealth. Specifically the study sought to establish the extent to which the following marketing mix factors influenced the selection of a packaging supplier at GSK: 1. The suppliers’ quoted prices 2. Quality of the package 3. Suppliers' distribution system and 4. The buyer-seller relationship factors The research design used was descriptive in nature. The sample frame for the study was a list of all members of staff from the Procurement, Supply and Quality Assurance departments. Their perception of how the above factors influenced the selection of suppliers at GSK was investigated. The primary data were collected either through personal interviewing or the completion of the questionnaire by the 22 management staff who were selected using stratified sampling based on their direct involvement in the process of selecting suppliers. The primary data were analysed using Microsoft Excel. From the data, statistical tools were used to derive the measures of central tendency like mean and the measures of dispersion like the standard deviation. The data was presented in tables. The study found that quality factors were perceived to influence supplier selection most at GSK. The mean for quality related factors was the highest at 4.79 while its standard deviation was lowest at 0.69. These quality factors included the supplier's commitment to their standard operating procedures, evidence of training of supplier staff on quality, supplier's accreditation to quality management and improvement organisations and evidence of their senior management commitment to quality. The respondents ranked the suppliers' distribution system as the second most important determinant of supplier selection with mean of 4.60 and standard deviation of 0.74. This included the supplier's ability to meet or exceed delivery dates agreed with GSK which was considered very critical in supplier selection. The reliability of the supplier's distribution system and the protection of the product during transit were also found to be critical for GSK. The distance from the supplier's premises to GSK was considered least important when selecting suppliers. The price of the package was ranked the second least important determinant of supplier selection with mean of 4.24 and standard deviation of 1.21. The supplier's financial stability and parity of their prices with the competition was found to influence GSK supplier selection most. The buyer- seller relationship factors were ranked as the least determinants of supplier selection at GSK with mean of 3.12 and standard deviation of 1.28. GSK considered the demonstrated expertise of the supplier's salesperson and their rapport with GSK staff as most influential in supplier selection. The reference of the supplier by a senior manager at GSK and the existence of any social relations with the supplier's salesperson were found to influence supplier selection least. This study recommends that both incumbent and prospective suppliers should not over focus on pricing factors when tendering for business at the expense of other key factors that influence supplier selection like superior high quality products, services and reliable delivery systems. Suppliers should strive to operate at perfection which is today's standard for the ultimate quality company. This will require them to internalise a culture that generates quality in all areas. There is need for buyers to develop and foster high quality partnership relationships with their suppliers because they result in increased customer retention, act as a source of new ideas, and facilitate operational planning. The buyers and sellers should seek for partnering as opposed to dictation. Adopting a relational "win-win" status between working partners rather than a transactional perspective to industrial markets can help both sellers and buyers to create superior value that can be mutually beneficial. Mutual relationship would drive cooperation and constructive problem solving in an environment of trust and win-win. The study recommends that further research incorporating other like companies should be carried out to determine the industry perception of factors that influence supplier selection. Secondly, the influence of other non-marketing mix variables like environmental factors, corporate social responsibility and adherence to international human rights code on supplier selection should be investigated. en_US
dc.publisher United States International University - Africa en_US
dc.subject suppliers, packaging, GLAXOSMITHKLINE en_US
dc.title Factors influencing selection of suppliers of packaging materials: a case of GLAXOSMITHKLINE en_US
dc.type Thesis en_US

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