Effect of Supplier Development on Operational Performance of Manufacturing Firms in Nigeria

Conventionally, the marketplace is almost saturated. Thus, since firms compete for limited market, future-centric firms are forced to be more strategic with regards to their resource utilization so as to gain competitive advantage. Hitherto, the hype has been on the employees, reduction of wastages and production costs within an organization, however, emerging trend has suggested that Supplier Development could serve as a more modern tool of competitive advantage that firms can leverage on to improve and sustain their organizational performance. Supplier Development has been characteristically defined as any premeditated long-term business strategy (a cooperative efforts) instituted by a buying firm to create, increase, expand and maintain the core competencies and capabilities of supplying-firm(s) principally to meet the buying firm's shortand/or long-term supply needs (Al-Doori, 2019; Popoola, 2019). Contemporarily, there is no gainsaying to the fact that supplier development has become the most influential management process for achieving and improving organizational performance. As a matter of fact, corporate success nowadays transcends customers and/or employees relationship management, to include suppliers’ technical, competence and capabilities development. Observably, fast-paced growth experienced within the last three decades globally, has reinforced the interconnectedness between buying and supplying firms to manage supply chain as part of a broader business strategy, and in particular to build and exploit shared relationships with supply chain partners. Abstract: Emerging trend has suggested that Supplier Development could serve as a more modern tool of competitive advantage that firms can leverage on to improve and sustain their organizational performance. This study investigates the effect of supplier development on operational performance of manufacturing firms in Nigeria with particular reference to Dangote Sugar Refinery (DSR). The specific objectives of this research are to; Determine whether supplier technical support has statistically significant effect on competitive advantage at Dangote Sugar Refinery Plc, Evaluate whether early supplier involvement has statistically significant effect on cost efficiency at Dangote Sugar Refinery Plc and Ascertain whether supplier audit has statistically significant effect of supplier financial supports on operational efficiency at Dangote Sugar Refinery Plc.. Primary data was collected by means of a well-structured questionnaire and the data collected were collated and analyzed using the Statistical Product and Service Solution (SPSS). Methodologically, descriptive survey research design of the quantitative approach was employed. Study population covered the entire top middle and lower level management staff of the Dangote Sugar Refinery (DSR) Plc. in Apapa, Lagos, Bompai in Kano and Nkpor-Onitsha in Anambra which according to field survey was 15,026. However, using Yamene (1967) formula sample size determination technique, a sample size of 390 was selected. Bowley’s allocation proportional formula was further used to determine each of the DSR’s selected location respective size. Retrieved data were statistically tested using descriptive statistics (include frequencies and percentages) and inferential statistics (simple regression method). It was found-out that supplier technical support has statistically significant effect on competitive advantage at Dangote Sugar Refinery Plc., early supplier involvement has statistically significant effect on cost efficiency at Dangote Sugar Refinery Plc., supplier audit has statistically significant effect on operational efficiency at Dangote Sugar Refinery Plc. and supplier certification has statistically significant effect on customer service delivery at Dangote Sugar Refinery Plc.