ROLE OF LIMITED NUMBER OF SUPPLIERS, LONG TERM ORIENTATION AND COMMUNICATION ON STRATEGIC PURCHASING: AN INVESTIGATION ON A LEADING FMCG (FAST MOVING CONSUMER GOOD) COMPANY OF KARACHI.

Abstract

The main purpose of this research is to determine the role of limited no. of suppliers, long term orientation and communication strategic purchasing: An investigation on the leading FMCG Company of Karachi. It has been critically evaluated that in the past years many researches has been conducted in the developed countries where the prime focus is on getting the maximum results. However in this emerging market, Pakistan is also moving towards acceleration in this regard and zone. The practices in Pakistan is still in an adaptive phase where the local companies are trying to mold themselves and trying to compete with the MNCs with the scope of brighter future in the long run. Therefore it is imperative to identify the role of long term orientation, limited no. of suppliers and communication with suppliers on strategic purchasing in the context of Pakistan. This research revolves around the following objectives, for instance, to determine whether limited number of suppliers enhances strategic purchasing. To determine whether long term orientation with suppliers enhances strategic purchasing. Further to determine whether communication with the suppliers enhances strategic purchasing. Also these variables effect on strategic purchasing. While researching the questions that were testing using research techniques were, Among these three, which of the variables (limited no. of suppliers, long term orientation and communication) has the greatest effect on strategic purchasing? Whether strategic purchasing practices satisfactory to run the supply chain performances readily? Lastly, How do limited no. of suppliers, long term orientation and communication effect the overall operation practices? Thirdly Based on the previous researches, studies and concepts following hypothesis are formed for testing the role of limited no. of suppliers, long term orientation and communication and their impact on strategic purchasing Hypothesis one is about limited no. of supplier s leads to strategic purchasing. Hypothesis two is about long term orientation with supplier’s leads to strategic purchasing. Hypothesis three is about Communication with supplier’s leads to strategic purchasing. As far as research methodology is concerned data has been gathered from primary sources based on Likert scale from questionnaire which revolves around independent and dependent variables. The questionnaire has been filled and attested by the management level employees as it is a management related topic and the study mostly emphasizes on the work related to management level employees. The sampling technique used for the research is Convenience sampling technique. Sampling could be of any type either probability or non- probability. In this research non-probability technique has been used which includes convenience sampling. The overall sample size has been taken from the leading FMCG company of Karachi. The sample size included all 137 employees of the targeted population out of 150 we targeted all the employees of the organization including the supervisors, managers, assistant managers and the directors. 137 out of 150 participated in the survey. The questionnaire were filled out by the participants and returned and they were asked to choose the appropriate relevant to them and rank the variables that could improve the supply chain performance: 1= strongly disagree...............5= strongly agree.