EFFECTIVENES OF BUYING FIRMS’ STRATEGY TO IMPROVE SUPPLIERS’ PERFORMANCE AND SUSTAINABILITY IN SUPPLY CHAIN: CASE OF FMCG SECTOR OF KARACHI

Abstract

Purpose: The purpose of this study paper is to examine the effectiveness of buying firm’s strategies to improve performance of supplier and improve sustainability in supply. The aim to identify problems, define and describe supplier development strategies to improve supplier performance with effectiveness including supplier assessment, direct involvement, supplier incentives & competitive. Methodology & Design: This process made to investigate the direct impact posits that each ofthe supplier development strategies directly yields the performance and sustainability by the quantitative data which gathered by using primary data collection methodology. The research approach is deductive whereas, questionnaire is used to collect data. The sample size ofthis research is 414 respondents, the data is being analyzed using PLS software and tests includes Regression and Cronbach alpha tests. Findings: The study ofresearch is to identify result with combined sample to indicated that supplier assessment, direct involvement, supplier incentives and competitive pressure has positively and significantly impact on performance improvement. Limitations: The limitation ofthis paper that the population includes both male and female which work in Purchasing departments, businessman and who buy FMCG product raw material from markets, locally and internationally. The age range is from 18 years from 50+ including young and old shoppers. This research will be conduct in Pakistan’s big cities like Karachi, through questionnaire both Google survey and in physical form. Recommendation: It is suggested to the companies to increase the level of relationship between the management and the suppliers. It is a two-way process, in which both ofthe parties must pay their part. It means that organizations should respect their suppliers, and suppliers on the other hand must make sure about the requirements oftheir clients and provide the same to them.