final research report - anuruddha.docx
TRANSCRIPT
-
7/29/2019 Final Research Report - Anuruddha.docx
1/44
-
7/29/2019 Final Research Report - Anuruddha.docx
2/44
Page | 2
1.2 Problem Statement
Amaya Leisure Plc. has been identified number of issues arising confusion of the operation&
procurement divisions for the past few years. For a instances Most of the capital expenditure
items are unable to use estimated working capacity. Usually those problems arising with the
lack of knowledge in labor of operation & ruthless usage of procurement functions, apart
from that difficult to hold stable rates with quality in the specific time period, sometimes lead
time getting high if payments getting delay or any other circumstance then entire operation
flow highly effected. Because of all issues supplier obligations getting high, Day to day
operations process become problematic situation then which will affect the whole
departments task flows, ultimately company reputation & total profit and revenue might face
to serious position. Therefore research has to be done for improving customer satisfaction by
making better operation flow with the assistance of Procurement Division in order to
decrease customer obligations & keeping smooth day to day operation then through of those
things enhancing the customer satisfaction and in the end company total profit revenue&
reputation would get upgraded
1.3 Research Objectives
To find out effective purchasing way for minimizing the waste of capital expenditure To identify the appropriate way to hold prices on par quality maintain To minimize the internal delays of authorization and hold sound cooperative
relationship with other departments
To identify the better payment paying system
1.4 Research Question
Research Question
How to make effective procurement procedure for minimizing the waste of capitalexpenditure, with the intention of improving customer satisfaction through enhancing
the performance level of operation?
-
7/29/2019 Final Research Report - Anuruddha.docx
3/44
Page | 3
What is the best way to hold stable rates& maintain the quality with the aim ofkeeping the quoted prices for improving customer satisfaction through enhancing the
performance level of operation?
How to pay attention for minimizing lead time by getting rid of the internal delays ofauthorization for improving customer satisfaction through enhancing the performance
level of operation?
1.5 Significance of the Study
The significance of this study is that I was able to get a broad understanding of how to
implement the better system to the process. I had to consider how to improve customer
satisfaction therefore I recommend and try to implement following things
I tried to increase effectiveness and efficiency of the current employees from these things
ultimately the company can achieve,
- High quality standards belongings purchasing- Improved internal customer satisfaction- Improved internal authorization procedures- Getting rid of payment delays as soon as possible
Further this study is important not only to improve customer satisfaction, but also to save
resources. The way of implementing it currently, causes to waste of resources.
Ineffective & inefficient features are the weaknesses of the process. Those weaknesses
should be eradicated in order to make the whole thing effective & efficient.
1.6 Research Methodology
With the help of literature review researcher develop the conceptual frame work to find the
answers for the research questions. Formulate the hypothesis to build the clear frame work.
And other part will include selecting sample, and data collection.
-
7/29/2019 Final Research Report - Anuruddha.docx
4/44
Page | 4
1.7 Limitations of the Study
The time taken to each activity is difficult to measure when it not practically happenduring the limited time period and also due to the non-value added activities involve
in the activities.
The amount of data collection are limited only for 100 is might move us from theactual result.
Some staff members effectiveness is not at very high standard since it is verydifficult to set time standards for them
Some critical procedures higher management doesnt like to change the currentsituation and doesnt like to disclose their company regulation
-
7/29/2019 Final Research Report - Anuruddha.docx
5/44
Page | 5
CHAPTER II
LITERATURE REVIEW
2.1 Introduction
This chapter will give an overview of literature and models that are related to the research
problem presented in the previous chapter. This chapter would introduce the concepts of
customer satisfaction, then relation between customer satisfaction and service quality, service
performances quality dimensions, in order to give a clear idea about the research area.
2.2 Customer Satisfaction
The most broadly recognized model, satisfaction is a function of disconfirmation, which in
turn is a function of both expectations and performance (Oliver, 1997). The disconfirmation
example in process theory provides the basis of the vast common of satisfaction studies and
includes four constructs expectations, performance, disconfirmation and satisfaction
(Caruana etal., 2000). This model suggests that the effects of expectations are mainly through
disconfirmation, but they also have an effect through perceived performance, as many studies
have found a direct effect of perceived performance on satisfaction (Sprengand Page, 2001).
Swan and Combs (1976) were among the first to argue that satisfaction is associated with
performance that fulfills expectations, while dissatisfaction occurs when performance falls
below expectations. In addition, Poiszand Von Grumbkow (1988) views satisfaction as an
inconsistency between the observed and the desired. This is consistent with value-percept
disparity theory (Westbrook and Reilly, 1983) which was developed in response to the
problem that consumers could be satisfied by aspects for which expectations never existed
(Yi, 1990). The value-percept theory views satisfaction as an emotional response triggered by
a cognitive-evaluative process (Parker and Mathews, 2001). In other words, it is the
comparison of the ``object to ones values rather than an expectation. Customers want a
meeting between their values (needs and wants) and the object of their evaluations (Paker and
Mathews, 2001). More recently, renewed attention has been focused on the nature of
-
7/29/2019 Final Research Report - Anuruddha.docx
6/44
Page | 6
satisfaction emotion, fulfillment and state (Parker and Mathews, 2001). Consequently,
recent literature adds to this perspective in two ways.
Customer satisfaction is essentially the result of intellectual processes; new conceptual
developments suggest that affective processes may also contribute substantially to the
explanation and prediction of consumer satisfaction (Fornell and Wernerfelt, 1987;
Westbrook, 1987; Westbrook and Oliver, 1991). Second, satisfaction should be viewed as a
judgment based on the cumulative experience made with a certain product or service rather
than a transaction-specific phenomenon (Wilton and Nicosia, 1986).
There is general agreement that: Satisfaction is a persons feelings of pleasure or
disappointment resulting from comparing a products perceived performance (or outcome) in
relation to his or her expectations (Kotler, 2003, p. 36). Based on this review, customer
satisfaction is defined as the result of a cognitive and affective evaluation, where some
comparison standard is compared to the actually perceived performance. If the perceived
performance is less than expected, customers will be dissatisfied. On the other hand, if the
perceived performance exceeds expectations, customers will be satisfied. Otherwise, if the
perceived expectations are met with performance, customers are in an indifferent or neutral
stage.
Customer satisfaction is defined as a customers overall evaluation of the performance of an
offering to date. This overall satisfaction has a strong positive effect on customer loyalty
intentions across a wide range of product and service categories (Gustafsson, 2005).The
satisfaction judgment is related to all the experiences made with a certain business
concerning its given products, the sales process, and the after- sale service. Whether the
customer is satisfied after purchase also depends on the offers performance in relation to the
customers expectation. Customers form their expectation from past buying experience,
friends and associates advice, and marketers and competitors information and promises
(Kotler, 2000).
Factors which determine the extent of expectations are: customer needs, total customer value
and total customer cost. It is mentioned by researchers who study customer choice that
choosing a product or service is only one of the stages customers go through. A purchase
decision is influenced by the buyers characteristics. These include cultural, social, personal
and psychological factors. In addition to the buyers characteristics, a purchase decision isinfluenced by the buyers decisionprocess. The typical buying process develops through five
-
7/29/2019 Final Research Report - Anuruddha.docx
7/44
Page | 7
stages: 1 new recognition; information search; 3 information evaluation; purchase evaluation
(Chaston, 2001).
Searching for information is a key stage of a consumers decision-making process and may
include a search for both internal and external information. As the perceived risk of a
purchase decision increases, consumers search for more information in order to cope with
uncertainties about the potential positive or negative consequences (Jihye Park, 2005).
According to the above stated literature it can be proved that there is relationship between
customer satisfaction and performances level. Hence when considering about the improving
performances level there are many things have to be improved out of these factors it is
selected that contribution of procurement functions to the performances level. According to
the procurement function it is selected three sub categories for the convenience of analyzing
Amaya Hills the research. They are authorization delays, supplier selection and payment
delays.
Then moving to the literature of independent variables it can be stated as follows
2.3 Internal Delays for Authorizations
Definition of Delays
In general, delays are among the most common problem would happen in the higher
management which may occur in a simple or a complex circumstances. Many researchers
have defined construction delays in their own word but it also brings the similar meaning.
Types of Delays
Delays can be groups in the following four broad categories according to how they operate
contractually.
Non- excusable delays Excusable non- compensable delays Excusable compensation delays Concurrent delays
-
7/29/2019 Final Research Report - Anuruddha.docx
8/44
-
7/29/2019 Final Research Report - Anuruddha.docx
9/44
-
7/29/2019 Final Research Report - Anuruddha.docx
10/44
-
7/29/2019 Final Research Report - Anuruddha.docx
11/44
Page | 11
While a number of supplier selection criteria studies have been conducted over the years,
Dickson (1966), Weber, Current, and Benton (1991) and Zhang, Lei, Cao, and Ng (2003) are
still recognized as the most common, and cited as the most comprehensive studies done on
selection criteria. (Appendix1) summarizes some of these criteria, which have appeared in
literature since 1966 (Ha and Krishnan, 2008).
One of the most important processes performed in organizations today is the evaluation,
selection, and continuous measurement of suppliers. Selecting a vendor is now as important a
process as developing new products. Supplier selection process is a multi-criteria problem,
which includes both qualitative and quantitative factors. Purchasing commands a significant
position in most organizations since purchased parts, components, and supplies typically
represent 40 to 60 percent of the sales of its end products. Thus relatively small cost
reductions gained in the acquisition of materials can have a greater impact on profits.
Suppliers have a large and direct impact on the cost, quality, technology, and time-to-market
of new products (Chen, Lin & Huang, 2006).
Supplier Selection with AHP Method
Analytic Hierarchy Process (AHP), since its invention, has been a tool at the hands of
decision makers and researchers, and it is one of the most widely used multiple criteria
decision-making tools (Omkarprasad& Kumar, 2006).
There are many strongest features of the AHP, for example it generates numerical priorities
from the subjective knowledge expressed in the estimates of paired comparison matrices. The
method is surely useful in evaluating suppliers weights in marketing, or in ranking order for
instance. It is, however, difficult to determine suitable weight and order of each alternative. It
has been shown that
Different weights among objects give rise to different results in ranking (Liu &Hai, 2005).
Choosing the supplier who submits the lowest cost is not a good choice necessarily. It might
cost more than what is submitted, when the merchandise is not high quality, for instance.Developing a model by using the AHP approach could decrease the delayed order. Giving
-
7/29/2019 Final Research Report - Anuruddha.docx
12/44
Page | 12
other criteria the needed attention to select the supplier by focus on its financial stability,
history, and other criteria could be the right way to choose the correct supplier. Getting the
right cost and the right time and the right specification is what needed in ABC Company.
2.5 Payment Delays
To the best of our knowledge, a time-based contract with a delayed payment has not been
examined previously in the literature.6 In particular, there are three features of the time-based
contract analyzed in this article which differ markedly from the existing supply contract
literature.
First, under the delayed payment regime, each supplier receives payment at the time when
both suppliers have completed their tasks. Consequently, each supplier needs to take into
account the other suppliers behavior when selecting her own work rate. It is through this
interaction among suppliers that the several underlying supply contracts are, in effect,
transformed into a single joint supply contract between the manufacturer and his multiple
suppliers. This linking of the several suppliers is a fundamental and crucial departure from
the traditional supply contract.
Second, in our model, the supply contract is specified by the price paid to each supplier and
the time of payment; the suppliers response to these two contract terms is her work rate.
These three choice variables, price offered, time of payment, and work rate, are
fundamentally divergent from5See so (2000) and the references therein for more details.
6The reader is referred to comprehensive reviews of supply contracts provided by Cachon
(2003) and Tang (2006).The traditional supply contracts in the Operations Management
literature. There the manufacturer sets the wholesale price schedule (often a fixed cost and a
constant per unit cost), and the retailer sets the order quantity (and the manufacturer has no
say as regards the retail price). The reader is referred to Corbett and Tang (1998) and Cachon
and Lariviere (2005) for discussions of divergent types of supply contracts that deal with
price menus, information asymmetry, and revenue sharing.
Third, our model focuses upon the (perhaps) uncertain completion time of all supplier tasks
when the deliverable is a customized product or service. The number of units to be delivered
is not an issue. In contrast, the primary focus in the traditional supply contract literature is
-
7/29/2019 Final Research Report - Anuruddha.docx
13/44
-
7/29/2019 Final Research Report - Anuruddha.docx
14/44
-
7/29/2019 Final Research Report - Anuruddha.docx
15/44
Page | 15
researcher has three alternatives in selecting the logic of a research. They are confirmatory
research, exploratory research, on a combination of both.
Exploratory research is research into the unknown. It is used when you are investigating
something but really don't understand it all, or are not completely sure what you are looking
for. It's sort of like a journalist whose curiosity is peaked by something and just starts looking
into something without really knowing what they're looking for.
Confirmatory research is where you have a pretty good idea what's going on. That is, you
have a theory (or several theories), and the objective of the research is to find out if the theory
is supported by the facts
However, the researcher may apply a mixed approach as the third option for the research, and
it is known as combination of confirmatory and exploratory research. This research has
gathered a lot of data through a close-ended questionnaire and most of the data was non-
numerical where the methodical approach of the research is qualitative.
3.3Research Methodology3.3.1Conceptual Model
Independent Variable Moderate Variable Dependant Variable
CUSTOMER
SATISFACTION
Internal Delays for
Authorization
Supplier Selection
Payment Delays
PERFORMANCE
LEVEL OF
OPERATION
-
7/29/2019 Final Research Report - Anuruddha.docx
16/44
-
7/29/2019 Final Research Report - Anuruddha.docx
17/44
-
7/29/2019 Final Research Report - Anuruddha.docx
18/44
-
7/29/2019 Final Research Report - Anuruddha.docx
19/44
Page | 19
CHAPTER IV
DATA PRESENTATION & ANALYSIS
4.1 Introduction
This chapter will focus on presenting the data which was gathered through the previous
chapter of the research. The data pertaining to the ENHANCING CUSTOMER
SATISFACTION BY IMPROVING PROCUREMENT FUNCTIONS IN THE SUPPLY CHAIN
would be presented according to the questionnaire and findings. The sample characteristics
will be illustrated graphically and the composition of the respondents would be also
illustrated. The responses for each variable would be presented with statistical background.
Thesection 4.2 briefly describes the descriptive statistical analysis of Customer Satisfaction,
Internal Delays for Authorizations, Supplier Selection and Payment Delays. This was further
elaborated by showing the histograms of Customer Satisfaction, Internal Delays for
Authorizations, Supplier Selection and Payment Delays using survey data.
The section 4.3 briefly describes the analysis of Customer Satisfaction, Internal Delays for
Authorizations, Supplier Selection and Payment Delays. The factor analysis was used to
identify the factors that affect Customer Satisfaction, the co-relation analysis was used to
identify the behavioral and contextual situation of customers and chi-square and regression
methods were used to identify the significant relationship between Customer Satisfaction,
Internal Delays for Authorizations, Supplier Selection and Payment Delays. A hypothesis
testing also carried out to prove the pre determined hypothesis validity as well.
Thesection 4.4 briefly describes the chapter summary by illustrating the various analysis of
data received from the user questionnaires.
-
7/29/2019 Final Research Report - Anuruddha.docx
20/44
Page | 20
4.2 Descriptive Statistical Analysis
Internal Delays for Authorizations
Table 4.1
INTERNAL AUTHORIZATION DELAYS
Frequency Percent Valid Percent Cumulative
Percent
Valid 3.8 11 11.0 11.0 11.0
4.0 55 55.0 55.0 66.04.2 21 21.0 21.0 87.0
4.4 13 13.0 13.0 100.0
Total 100 100.0 100.0
This above Table 4.1 suggests that most of the customers are agreed for that there is an
internal authorization delay in the organization. The frequency level over 4.0 is the satisfied
level and it shows that 89 people are agreed to the above variable.
Table 4.2
INTERNAL AUTHORIZATION DELAYS
N Valid 100
Missing 0
Mean 4.072
Mode 4.000
Std. Deviation 0.169
Skewness 0.553
Kurtosis -0.256
Minimum 3.800
Maximum 4.400
-
7/29/2019 Final Research Report - Anuruddha.docx
21/44
Page | 21
Figure 4.1
Supplier Selection
Table 4.3
This above Table 4.3 suggests that most of the customers are agreed with the fact that there is
a supplier selection process problem. The frequency level over 4.0 is the satisfied level and it
shows that all the people (100) are agreed to this independent variable.
SUPPLIER SELECTION CONFLICTS
Frequency Percent Valid
Percent
Cumulative
Percent
Valid 4.0 63 63.0 63.0 63.0
4.2 20 20.0 20.0 83.0
4.4 17 17.0 17.0 100.0
Total 100 100.0 100.0
-
7/29/2019 Final Research Report - Anuruddha.docx
22/44
-
7/29/2019 Final Research Report - Anuruddha.docx
23/44
Page | 23
Payment Delays
Table 4.5
PAYMENT DELAYS
Frequency Percent Valid Percent Cumulative
Percent
Valid 3.8 13 13.0 13.0 13.0
4.0 57 57.0 57.0 70.0
4.2 17 17.0 17.0 87.0
4.4 13 13.0 13.0 100.0
Total 100 100.0 100.0
This above Table 4.5 suggests that most of the customers are agreed with the fact that there is
a payment delay in procurement department. The frequency level over 4.0 is the satisfied
level and it shows that 87 people are agreed to this variable as well.
Table 4.6
PAYMENT DELAYS
N Valid 100
Missing 0
Mean 4.060
Mode 4.000
Std. Deviation 0.171
Skewness 0.645
Kurtosis -0.127
Minimum 3.800
Maximum 4.400
-
7/29/2019 Final Research Report - Anuruddha.docx
24/44
-
7/29/2019 Final Research Report - Anuruddha.docx
25/44
Page | 25
Table 4.8
CUSTOMER SATISFACTION
N Valid 100
Missing 0Mean 4.8767
Mode 5.0000
Std. Deviation 0.1617
Skewness -0.547
Kurtosis -1.736
Minimum 4.670
Maximum 5.000
Figure 4.4
-
7/29/2019 Final Research Report - Anuruddha.docx
26/44
Page | 26
4.3 Inferential Statistical Analysis
Correlation Coefficient
Table 4.9
The correlation matrix is shown below with the values of all the variables.
The correlation variables have been explained under Correlation Matrix. The above table
shows that CS has a negative correlation (-0.754**
) with IA indicating that if authorizationdelays increase the customer satisfaction will be decreased. The significance level remains at
0.01 levels. Likewise, the relationship of CS and SS, PD also significantly and negatively
connected at 0.01 levels.
Testing of Hypothesis
In this study, the researcher introduced 3 hypotheses. The Bivariate correlations of all the
hypotheses at 0.01 levels of significance are shown as follows.
TABLE 4.9
Correlation Matrix
IA SS PD CS
IA 0.844 0.919 -0.754
SS 0.844 0.806 -0.919
PD 0.919 0.806 -0.773
CS -0.754** -0.919** -0.773**
N = 100
-
7/29/2019 Final Research Report - Anuruddha.docx
27/44
-
7/29/2019 Final Research Report - Anuruddha.docx
28/44
Page | 28
H02 There is a positive co-relation exists between supplier selection of goods and
customer satisfaction.
H3 There is a negative co-relation exists between supplier payment delays and customer
satisfaction.
H03 There is a positive co-relation exists between supplier payment delays and customer
satisfaction.
Regression AnalysisTable 4.9
Table 4.10
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 7.808 0.258 30.238 7.54e-201 ***
INTERNAL
AUTHORIZATION
DELAYS
-0.720 0.063 -0.754 -11.361 6.55e-030 ***
a. Dependent Variable: CUSTOMER SATISFACTION
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 0.754a 0.568 0.564 0.106
a. Predictors: (Constant), INTERNAL AUTHORIZATION DELAYS
b. Dependent Variable: CUSTOMER SATISFATION
-
7/29/2019 Final Research Report - Anuruddha.docx
29/44
Page | 29
Regression Equation
CS = 7.8080.720IA
As per the equation above, it takes a negative value to say that when an authorization delay
occurs inside the organization, the customer satisfaction gets increased. The P value of the
same is 6.55e-030 *** and that is below the rejection level of 0.01. Therefore, H1 is accepted
and H01 is rejected with 0.01 level of significance. Therefore, it can be assumed that there is
a positive correlation exists between authorization delays and customer satisfaction.
Figure 4.4
-
7/29/2019 Final Research Report - Anuruddha.docx
30/44
Page | 30
Table 4.11
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 0.919a 0.844 0.842 0.064
a. Predictors: (Constant), SUPPLIER SELECTION
b. Dependent Variable: CUSTOMER SATISFACTION
Table 4.12
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 8.835 0.172 51.323 0.0000 ***
SUPPLIER
SELECTION
-0.964 0.042 -0.919 -23.011 3.61e-117 ***
a. Dependent Variable: CUSTOMER SATISFACTION
Regression Equation
CS = 8.835 - 0.964SS
As per the equation above, it takes a negative value to say that when a supplier selection
problem occurs inside the organization, the customer satisfaction gets decreased. The P value
of the same is 3.61e-117 *** and that is below the rejection level of 0.01. Therefore, H2 is
accepted and H02 is rejected with 0.01 level of significance. Therefore, it can be assumed
that there is a negative correlation exists between supplier selection and customer
satisfaction.
-
7/29/2019 Final Research Report - Anuruddha.docx
31/44
-
7/29/2019 Final Research Report - Anuruddha.docx
32/44
-
7/29/2019 Final Research Report - Anuruddha.docx
33/44
Page | 33
4.4 Chapter Summary
This chapter was initiated by analyzing the samples which were under consideration. The
demographics of the data samples, distribution of questionnaire and the final response were
presented in a table and a graphical format. The responses obtained for each variable wasthen illustrated. The composition of the respondents was then briefly introduced. A detailed
illustration of responses according to the different variables was given, with supporting
statistical analysis.
The descriptive analysis of Customer Satisfaction, Internal Delays for Authorizations,
Supplier Selection and Payment Delays was elaborated through a frequency tables and a
histograms. Then by using SPSS as a statistical tool the analysis of Customer Satisfaction,
Internal Delays for Authorizations, Supplier Selection and Payment Delays was done by
using factor, cluster and chi-squire methods. The above three methods were broadly
described by using tables and charts having comparisons with each factors and clusters.
Finally all findings were presented in a summarized format and the hypothesis testing also
has been carried out in a structural manner.
-
7/29/2019 Final Research Report - Anuruddha.docx
34/44
Page | 34
CHAPTER V
CONCLUSION & RECOMMONDATIONS
There were insufficient resources; practical situation is good to study the research question.
However, practical situation has its disadvantages, no matter how research survey is
conducted, it will not give the research respondent 100 percent real-life experience, and
therefore it would lead to discriminatory outcome. So, it is suggested to carry out some
personal interviews in addition to the survey, in this way the conclusion would be more
trustworthy.
As a result of the time constraints, although the sample size was enough to illustrate
conclusion from it, it is always preferred to have larger sample size. Larger sample size will
produce more precise calculations. Furthermore, using stratified sample instead of convenient
sample will also contribute to more accurate results.
Finally, as this study has uncovered the generalizability limitation, it is suggested that future
research examine the relationship between task and relationship conflicts on individual
performance outcome on other industries, which would increase the outside authority this
study require.
Amaya Hills Hotel performance and providing customer satisfaction depends on the
employees performance. It is given questionnaires to 100 people hotel employees. From this
sample all 100 useful surveys are returned which indicates the relationship between customersatisfaction and respective variables. The result of the surveys shows that one is a positive
&two negative relationships between dependent variable and independent variable
This study measure impacting the procurement functions to the customer satisfaction, then
evaluating dependency of customer satisfaction on three variables, which are Internal delays
authorizations, Supplier Selection conflicts, Payment delays, Basically these three effecting
on the whole hotel procurement functions
-
7/29/2019 Final Research Report - Anuruddha.docx
35/44
Page | 35
Supplier selection and customer satisfaction have a positive relationship for the convenience
of measuring choose moderate variable which is performances level in the operation.
Performance of the hotel depends on the purely employees performance because they provide
the more services. So if the staffs performance will be high then the performance of
operation will be also high. If improving the capacity of the staff they have to be provided
whose requirements on time, including right quality with affordable price. In order to achieve
all these things it should be maintained better supplier selection
According to this research findings are founded below mentioned findings for each stated
variable
Supplier Selection
1. At the beginning think about the product cost before the quality. it can be created avulnerable situation for the operation flow
2. There is no procedure for analyzing of past performances of suppliers &makeassumption.
3. Lack of connectivity between suppliers & persons who is engaging with operation
.Internal Delays of Authorizations
Internal delays authorizations and customer satisfaction have a negative relationship if
authorization process getting late total operation gets collapsed since scarcity of stocks, bad
results effecting by using the side remedies, that means delays of authorization getting high
customer satisfaction get decreased Therefore it can be stated below points as findings for
creating authorization delays
There is no purchasing power of individual depends on their position in thehierarchy of the organization, therefore when coming the any capital item
purchasing form it comes until the managing directors approval then it takes time
to complete the job, ultimately it will effect to the operational performance. If it
has above stated procedure it can be given authority powers according to the
hierarchy
-
7/29/2019 Final Research Report - Anuruddha.docx
36/44
Page | 36
Lack of knowledge understanding between procurement department & operationdepartment according to the needs of operation. There is no process of
identification of needs before requirement is urgent
Hotel still using paper authorization system therefore it takes time to send theapproval hotel to head office Colombo & back to the hotel
Payment Delays
There is negative relationship between customer satisfaction, when suppliers payments are
getting delay automatically supplier deliveries and supplying getting delay therefore
operational flow become problematic situation.
According to the research there are few points I have found for influencing on payment
delays
There is no proper procedure of checques issuing from convenient place tothe suppliers when giving any kind of payment it has to be issued by hotel
company procedures but it would get much time to pass the payment to the
supplier
When checque is ready there should be seven signatures included out of thesesignatures three signatures from the hotel & four signatures from head office,
if getting delay one place total procedure getting delay
There is no signature powers at the some certain extend position in thehierarchy of the organization
These mistakes I have founded the procurement process when I was engaging this
programmed therefore according to me there are few recommendations with relevant to the
each variable
Suggestion for Reducing Authorization Delays
o Giving the purchasing power of individual depends on their position in thehierarchy of the organization,
-
7/29/2019 Final Research Report - Anuruddha.docx
37/44
Page | 37
o When requirement coming to the operation department having access to directcontact with relevant person in the hierarchy. it can be minimize time identify
of the need by relevant person
o Creating a good relationship between procurement department & operationdepartment according to the needs of operation. it can be managed the conflict
of procurement functions
o Using better communication media for data exchanging Hotel (Kandy) toHead office (Colombo) it can be managed the conflict of procurement
functions
o Using electronically based authorization system for making good for theoperational flow
Suggestion for Better Supplier Selection
oAt first think about the product quality before thinking about the cost. it can behelped to identify the quality
o Analyze of past performances of suppliers &make assumption. it can bemanaged the conflict of procurement functions
o Keeping good bargaining power with suppliers. it can be managed fluctuationof prices time to time
o Introducing & meeting suppliers & persons who is engaging with operation itcan be provided good solution for the correct item selecting
o Think & consider the warranty of the relevant item it can be got rid ofunavailability in using estimated time period in relevant item
-
7/29/2019 Final Research Report - Anuruddha.docx
38/44
Page | 38
Suggestion for Reducing Payment Delays
o Making a procedure checques issuing from convenient place to the suppliers(Head office or Hotel) it can be good solution payments delay.
o It is engaging with flexible way with suppliers of fast moving necessaryproducts.
o Adjust rapidly prices of Cigarettes, Alcohol, Gas & Petrol Diesel likemonopolistic items.
o It has to be flexible if issues arising good receiving amount & purchaserequested order amount.
o Giving Signature powers some certain extendposition in the hierarchy of theorganization
-
7/29/2019 Final Research Report - Anuruddha.docx
39/44
Page | 39
REFERENCES & BIBLIOGRAPHY
Arbnor, I. and Bjerke, B. (1997), Methodology for creating business knowledge, 2. ed.,
Thousand Oaks, Sage publications Inc.
Anderson, M. G. and Katz, P.B. (1998), Strategic Sourcing The International Journal of
Logistics Management, Vol. 9 Issue 1, pp. 1-13.
Ammer, D.S. (1961), "Purchasing for Profits", Harvard business review, vol. 39 no. 3, pp.
135-143.
Ammer, D.S. (1974), Is Your Purchasing Department A Good Buy?, Harvard Business
Review, Vol. 52 no 2, pp. 36-157.
Ammer, D.S. (1989), "Top Management's View of the Purchasing Function", Journal of
Purchasing& Materials Management, vol. 25 no. 1, pp. 16-21.
Burrell, G. and Morgan, G. (1979), Sociological Paradigms and Organizational Analysis,
London: Heinemann
Butter, F. and Linse, K. (2008), Rethinking Procurement in the Era of Globalization, MIT
Sloan Management Review, Vol. 50 Issue 1, pp. 76-80.
Kocabasoglu, C. and Suresh, N.C. (2006), Strategic Sourcing: An Empirical Investigation of
the Concept and Its Practices in U.S. Manufacturing Firms, Journal of Supply Chain
Management, Vol. 42 no. 2, pp. 4-16.
Kraljic, P. (1983), Purchasing must become supply management, Harvard Business
Review, Vol. 61 no. 5, pp. 109-117.
Monczka, R. M., Trent, R. J. and Petersen, K.J. (2006), Effective Global Sourcing and
Supply forSuperior Results Arizona, CAPS Research.
Morris, M.H. and Calantone, R.J. (1991), "Redefining the Purchasing Function: An
Entrepreneurial Perspective", International Journal of Purchasing & Materials Management,
vol. 27 no. 4, pp. 2-9.
Ramsay, J. (2001), Purchasings strategic irrelevance, European Journal of Purchasing and
Supply Management, Vol. 7 no. 4, pp. 257263.
-
7/29/2019 Final Research Report - Anuruddha.docx
40/44
-
7/29/2019 Final Research Report - Anuruddha.docx
41/44
-
7/29/2019 Final Research Report - Anuruddha.docx
42/44
-
7/29/2019 Final Research Report - Anuruddha.docx
43/44
-
7/29/2019 Final Research Report - Anuruddha.docx
44/44
2. Supplier selection conflicts always end up in loosing valuable customers to theorganization.
HD D N A HA
3. Payment delays are not favorable to any organization who strives to increaseperformance and customer satisfaction.
HD D N A HA
Thank you very much for your participation!