Causes and effects of suppliers’ failure to meet orders on time: a case of food reserve agency.

Abstract

This research articulates the Causes and effects of suppliers’ failure to meet orders on time at FRA for the crop marketing requisites. It was discovered that some of the challenges faced in the supply chain are supply and delivery of crop marketing materials to FRA, delivery times of materials, suppliers failing to meet orders on time and inefficient operation of FRA due to supplier failure to meet orders on time. Data was collected from 75 respondents from FRA staff, farmers who supply grain to FRA and suppliers who supply crop marketing requisites to which was analysed using statistical package for social scientists (SPSS) version 2.0 and Microsoft excel. It was concluded that some of the reasons for failure were lack of capital, lack of capacity for bulk supply and failure to plan execution by suppliers. Delayed delivery of orders and failure to execute contracts timely by suppliers resulting in delivery of poor quality material were some of the effects identified during data analysis. These challenges can be ironed out through establishing capacity building and order financing options with leading banks or financial institutions. There is need to encourage more manufacturers locally through creation of a policy that will favour new entrants into the industry. The study also recommended strengthening engagements with selected suppliers during the process of sourcing and delivering. There is need to come up with a way of clearing crop marketing requisites from suppliers timely so as to attract reputable companies to participate in the crop marketing requisites tenders. The bulk nature and high cost of crop marketing requisites requires a good cash flow by suppliers. FRA must consider having a funding model for requisites even in form of third party such as banks. Key words: Food Reserve Agency (FRA), Food Security, Procurement, Supply Chain Management (SCM), Farmers, Suppliers, Crop Marketing Materials, Orders, Bidding.