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In: Operations Management

1. Significance of the Effect of Organizational Culture on Supplier Satisfaction   (A Case Study on Jumia...

1. Significance of the Effect of Organizational Culture on Supplier Satisfaction  

(A Case Study on Jumia Ghana)

2. Brief Methodology or Overview of Methodology of the effect of organizational culture on supplier satisfaction. ( a case study on jumia ghana).

3. Scope of the effect of organizational culture on supplier satisfaction. ( a case study on jumia ghana).

4.

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Expert Solution

1. The effect of organizational culture on supplier satisfaction can be understood in terms of what attributes of organizational culture are visible to the supplier as well as what attributes make the supplier experience ease of doing business with the organization.

Some key attributes of organizational culture are goal and role clarity in all all employees of the organization where the individual roles as well as departmental roles are so designed that they are coherent with the organizational goals. This helps in an interrupted and frictionless functioning of organization to a great degree. Another key attribute of organizational culture would be development and adherence of what discipline. Here quality and time off work are given sufficient importance so as to ensure that not only e the output from every department is qualitative but it is well in time. Third attribute would be inter departmental coordination of the organization. This helps in smooth flow of work from department to department within the organization as well as ensures established protocols for conflict resolution in-case of a conflict. The fourth attribute of organizational culture would be external communications. Individuals and departments responsible for interacting with clients and suppliers need to have defined methodology as well as other soft skills of possessiveness, politeness, concern for external stakeholders interest and so on. The fifth relevant attribute would be shop floor discipline where production or services are delivered in a manner to produce an acceptable quality of goods and service.

The supplier satisfaction depends upon the above attributes in a significant way. The focus of organization on quality of product or service as per its business model gives sufficient clarity to suppliers in terms of the expected output from suppliers into the organization. The supplier can establish or upgrade its supply lines and output to ease out any conflict which eventually helps in acceptability of supplier inputs. As a result the quality assurance and consequently payments are unhindered. The culture of communication in the organization means that any supplier interacting with the organization is exposed to a certain kind of communication at the time of placing order as well as at the time of processing of payments. Good standards of external communication make supplier satisfied and give him absolute clarity about the details of product or service required from the supplier which eliminates any room for ambiguity and withholding of any payments. The inter departmental coordination as an aspect of organizational culture ensures that once the supplies have been delivered, all the following activities within the organization are sequential smoothed and in time. Such as the QC department certifies the quality of the product, the warehousing department updates the inventory, the building department rectifies the bills and finance and accounts department approve the payments. Thus all these aspects of organizational culture contribute to supplier satisfaction.

2. The methodology to gauge the effect of organizational culture on supplier satisfaction has following steps:


2.1. Establishment of a supplier feedback mechanism where supplier can log there experience of interacting with the organization.

2.2. Development of data log to observe supplier interaction with departments from supply of one batch to supply of subsequent batch of goods. The data monitoring specialists within the organization can observe supplier performance aspects such as willingness to take and deliver subsequent orders, attention to the quality of product between various batches of orders, adherence to supply schedules by the supplier from batch to batch.
2.3. The frequency of supplier interaction with the organization and willingness to engage in product quality enhancement as well as diversification for the organization.

2.4. Grievance addressing opportunities to supplier where they can login their experience of interacting with various departments of the organization from technical to procurement to inventory and finance and accounts.

3. The scope of effect of organizational culture on supplier satisfaction extends right from the keenness of supplier to receive and deliver orders to the desired specification and timelines write up to willingness of the suppliers to continue to engage with the organization for future business opportunities and also willingness to diversify in product portfolio within the capacity of supplier if the organization so requires. Anytime a supplier is willing and eager to interact with client organization it is in itself or testimonial that supplier satisfaction is sufficient to keep it interested in working with the organization. The interest of supplier in adhering to timelines and willing to undertake modifications and diversification within the capacity are also so on formations that supplier is not only willing to take the extra pain to keep the quality as per specification but also willing to diversify in hope of fresh business opportunities with the organization as a result of good interactions and experience with the organization at various levels. Clarity in scope of product in terms of design batch size and quality as well as smooth post supply processing of supply documentation as running account and final bills gives the dimensions of scope of supply of the organization with respect to supply satisfaction.

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