The impact of supplier relationship management on business competitiveness in the beverages manufacturing sector: case Delta Beverages
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Supplier Relationship Management (SRM) is the development and maintenance of strategic relationships with vital suppliers. The study focused on the impact of supplier relationship management on business competitiveness for Delta Corporation in Zimbabwe. This research adopted an exploratory research design that utilises both primary and secondary data gathering techniques. Primary data was obtained through questionnaires and statistical package SPSS version 1.0 statistical software package was used to analyse data. Secondary data was obtained by examining Delta supplier contract documents and reports from organisations such the ABInBev and TOYOTA.The literature review revealed that supplier relationship management is essential in supply chain management. The study found out that there lack of communication between Delta and its suppliers causing havoc and a lot of mistrust. Suppliers have lost trust in Delta. They do not enjoy the loyalty of their customer as they think Delta is always looking for alternative suppliers to fulfil its needs. The study reveals that suppliers are more committed in this relationship than the buyers .There no mutual commitment in the relationship. Supplier’s payment delays were noted to be the major driver of conflicts in supplier relationship management. Suppliers are operating in very unstable economic conditions and any delay in payments result as a loss to their business. The study recommends that Delta builds long-term relationships with its suppliers and maintain good communications. It should benchmark with SRM models of companies that have succeeded on the concept. A supplier partnering relationship strategy is recommended to Delta Beverages and the strategy should be documented and distributed to all users to standardise their behavior towards suppliers.