This study examinedthe factors being the independent variables on the suppliers’ timely deliveryof materials and services being the dependent variable. The case study was onGathuthi Tea Factory which is among the leading producer of high quality black CTCtea globally and where the suppliers of raw materials are mainly growers of thegreen tea leaves. The other suppliers supply other raw materials and services relevantin achieving that objective. This study thus put focus on the suppliers of rawmaterials and services other than the supply of green tea leaves and how timelydelivery can be achieved.
The study was mainly on the inbound logistics ofthese materials and services offered by the suppliers. The study considered thefactors influencing the suppliers’ timely delivery of materials are the methodchosen for communication between the buying organization and the supplier, thelevel of supplier development a buying organization has engaged with itssupplier, the use of key performance indicators which will set performancegoals for the supplier and managed by the buying organization and last but notleast, the availability of information among the departments of the buyingorganization and between the buying organization and the supplier. The studyfocused to investigate if these factors influence suppliers’ timely delivery ofmaterials and services. The study was guided by the following research objectives:to find how the methods of communication affect suppliers’ timely delivery ofmaterials and services; to investigate whether the level of supplierdevelopment affects suppliers’ timely delivery of materials and services; todetermine how key performance indicators affect suppliers’ timely delivery ofmaterials and services; and to establish if availability of information affectssuppliers’ timely delivery of materials and services. The study will be ofgreat importance to the management of Gathuthi Tea Factory, to the managementof other KTDA managed factories, to the management of KTDA, the government ofKenya as well as future researchers in suppliers’ timely delivery.
Other empirical studiesdid not investigate on how to attain timely delivery of materials and servicesfrom suppliers’. Instead they had been working closer to the customer andtimely delivery was focused to be achieved for the customers. Suppliers’ timelydelivery involves inbound logistics which should be done in an effective andefficiently manner by the supplier. In this study, the game theory was used toexplain how method of communication, level of supplier development, keyperformance indicators and availability of information affect suppliers’ timelydelivery of materials and services and to be precise the cooperative gametheory where it can be applied to the case where players can achieve morebenefit by cooperating than staying alone. This study used non-probability samplingsince it was only concerned with targeted respondents. Purposive sampling wasused to select samples from the population strata which involved selectingcertain units or cases based on a given specific purpose rather than randomly(Kothari, 2011). The study used a sample size of 28 which consisted offactory’s heads of departments team and they were the factory unit manager,purchasing staff, storekeepers, the logistics manager, finance managers as wellas the production managers.
Quantitative data analysis which involves use ofstatistical tools in descriptive statistics was used in this study. The datawas presented by use of frequency distribution tables, and pie charts to showthe relationship between the variables observed. The study found out that theuse of advanced methods of communication is seen to be positively related tothe suppliers’ timely delivery of materials and services.
However, EDI has notbeen completely employed because of supplier’s non-compatibility with factory’scomputer systems. Lack of supplier development in the factory has led to thedelayed deliveries in the factory. Lack of use of key performance indicatorshas contributed to delayed deliveries of materials and services in the factory.Availability of information has a positive influence on supplier developmentand use of key performance indicators