Assessing the effect of strategic purchasing on supply chain performance - a case of selected firms in the beverahe industry in Ghana

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The main purpose of this study is to improve supply chain performance through strategic purchasing function of organisations. The study develops a conceptual model where strategic purchasing practices are considered as the independent variable with supply chain performance as the dependent variable which is measured in three dimensions – resource performance, output performance and flexibility performance. The conceptual model is tested by data collected from firms in the beverage industry in Ghana in an attempt to address the objectives of the study. Out of the one hundred (100) questionnaires administered, 82 were iv returned representing 82% response rate. This research provides a clear insight into and a particular finding on the relationship between strategic purchasing practices and specific supply chain performance measures (resource performance, output performance and flexibility performance) among firms in Ghana. The studies that were conducted by previous scholars had found and stated that strategic purchasing has positive effects on overall company performance. In this research, the findings are also in line with that statement, and identifying that among firms in Ghana especially, the strategic purchasing activities have great and positive influence on company supply chain performance. However, the effect on output performance and resource performance were more than that of flexibility performance. Therefore, firms in Ghana should have an emphasis on improving and leveraging the purchasing functions into a more strategic direction so that they achieve their performance targets’ and gain significant cost savings on key resources.
A thesis submitted to the department of supply chain and information systems, Kwame Nkrumah university of science and technology in partial fulfilment of the requirements for award of degree of master of science (procurement and supply chain management)