ABSTRACT The purpose of the study was to examine the relationship between supplier evaluation and organization performance with the case study of ADLG with the aim of making recommendations and conclusions. The study was guided by objectives specifically to examine the relationship between supplier evaluation and organization performance, the criteria used for evaluating and the benefits of supplier evaluation. The study involved secondary sources of data where the researcher related his work with the different author publications and make conclusions based on them. A study was conducted where all the employees of the PDU and some selected staff from other departments were issued questionnaires to be filled and analyzed for findings together with interviews as the primary source of data. Data was collected using self-administered questionnaire to collect data. The data collected was analyzed using quantitative and qualitative methods. The study used a case study design to get an estimation of respondents view in regard to the objectives of the study. The target population was the staff of ADLG though major focus was the PDU. The study therefore used a population of 45 respondents. It employed random sampling method to avoid biasness in data presentation. Due to time constraint, the researcher only used questionnaire and interview methods to gather primaJy data which was analyzed ethically after collection by use of frequency tables and percentages.

TABLE OF CONTENTS

DECLARATION ....................................................................................................................... i

APPROVAL SHEET ............................................................................................................... ii

DEDICATION ......................................................................................................................... iii

ACKNOWLEDGEMENT ..................................................................................................... .iv

TABLE OF CONTENTS ........................................................................................................ v

LIST OF TABLES ................................................................................................................ viii

LIST OF FIGURES ................................................................................................................ ix

LIST OF ABBREVIATIONS ................................................................................................. x

ABSTRACT ............................................................................................................................. xi

CHAPTER ONE ...................................................................................................................... 1

1.0 Introduction .......................................................................................................................... I

1.1 Background to the study ...................................................................................................... !

1.2 Statement of the problem ..................................................................................................... 3

1.3 Purpose of the study ............................................................................................................. 3

1.4 Objectives of the study ......................................................................................................... 3

1.5 Research Questions .............................................................................................................. 3

1.6 Scope of the study ................................................................................................................ 4

1.6.1 Geographical scope ........................................................................................................... 4

1.6.2 Content scope .................................................................................................................... 4

1.6.3 Time scope ........................................................................................................................ 4

1.7 Significance ofthe study ...................................................................................................... 4

I. 7 Conceptual framework ......................................................................................................... 6

CHAPTER TWO: LITERATURE REVIEW ....................................................................... 7

2.0 Introduction .......................................................................................................................... 7

2.1 The concept of supplier evaluation ...................................................................................... 7

2.2 The concept of organizational Performance ........................................................................ 8

2.3 The relationship between Supplier Evaluation and organizational Performance ................ 8

2.4 Supplier evaluation criteria ................................................................................................ II

2.4.1 Financial Stability ........................................................................................................... 11

2.4.2 Suppliers Quality commitment ....................................................................................... 12

2.4.3 Production Facilities ....................................................................................................... 13

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2.4.4 Supplier's Organizational Culture .................................................................................. I 3

2.4.5 Cost Factors .................................................................................................................... 14

2.4.6 Preference and reservation .............................................................................................. 14

2.4.7 Environmental issues ...................................................................................................... 15

2.5 Benefits of Supplier Evaluation ......................................................................................... I 5

CHAPTER THREE: METHODOLOGY ............................................................................ 18

3.0 Introduction ........................................................................................................................ 18

3. I Research Design ................................................................................................................. I 8

3.2 Target population ............................................................................................................... I 8

3.3 Sample size ........................................................................................................................ 19

3.4 Sample technique ............................................................................................................... 19

3.5 Sample procedure ............................................................................................................... 19

3.6 Data collection sources ...................................................................................................... 20

3.6.1 Primary sources ............................................................................................................... 20

3.6.2 Secondary sources ........................................................................................................... 20

3.7 Data collection instruments ................................................................................................ 20

3.7.1 Questionnaire .................................................................................................................. 20

3.7.2 Interviews ........................................................................................................................ 20

3.7.3 Publications and literature Review ................................................................................. 20

3.8 Validity and reliability ....................................................................................................... 21

3. 9 Data analysis ...................................................................................................................... 21

3.10 Ethical procedure ............................................................................................................. 21

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION ............ 22

4.0 Introduction ........................................................................................................................ 22

4.1 Data of Respondents .......................................................................................................... 22

4.1. I Sex of the Respondents ................................................................................................... 22

4. I .2 Age of respondents ......................................................................................................... 23

4. I .3 Respondents position ...................................................................................................... 23

4.1.4 Respondents number of years worked ............................................................................ 24

4.2 Findings on supplier evaluation in the organization .......................................................... 24

4.3 Findings on performance levels ......................................................................................... 25

4.4 Findings on benefits of supplier evaluation ....................................................................... 25

4.5 Discussion of results .......................................................................................................... 26

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CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION ........... 27

5.0 Introduction ........................................................................................................................ 27

5.1 Summary ............................................................................................................................ 27

5.2 Conclusions ........................................................................................................................ 28

5.3 Recommendations .............................................................................................................. 29

5.4 Limitations of the study ..................................................................................................... 29

5.5 Areas for further studies ..................................................................................................... 29

REFERENCES ....................................................................................................................... 31

APPENDICES ........................................................................................................................ 34

APPENDIX I: QUESTIONNAIRE ................................................................................................... 34