An Investigation of Supplier Relationship Management in Airtel Nigeria, Kano State
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Background of the Study
Supplier Relationship Management (SRM) refers to the strategic approach an organization takes to manage its relationships with suppliers. In the telecommunications industry, SRM is essential for ensuring a reliable and cost-effective supply of goods and services that support the organization’s operations. Airtel Nigeria, a key player in Nigeria’s telecommunications market, relies on a diverse range of suppliers for network infrastructure, customer service equipment, and other resources critical to its operations (Nwachukwu & Eze, 2024). The management of these supplier relationships is vital for Airtel’s operational efficiency and customer satisfaction.
In Kano State, one of the largest and most industrialized states in northern Nigeria, Airtel faces unique challenges related to local supply chain dynamics, including the management of suppliers in a region with varying levels of infrastructure and logistical constraints (Bello & Hassan, 2024). Effective SRM practices can help Airtel reduce costs, improve supplier performance, and ensure the timely delivery of critical supplies. However, the complex nature of telecommunications supply chains and the need to balance cost with quality and reliability make SRM a challenging task for Airtel in Kano State.
While studies have shown that effective SRM practices lead to better procurement outcomes, stronger supplier relationships, and increased operational efficiency, limited research exists on the specific implementation of SRM in the Nigerian telecommunications sector, particularly in Kano State. This study will investigate Airtel Nigeria’s SRM practices in Kano State, focusing on how these practices contribute to organizational performance and supply chain efficiency.
Statement of the Problem
Despite the recognized importance of SRM in enhancing operational efficiency, Airtel Nigeria faces challenges in managing its supplier relationships effectively, particularly in Kano State. Issues such as inconsistent supplier performance, logistical delays, and high procurement costs are common obstacles faced by the company. The lack of robust SRM systems in some regions has led to inefficiencies and delays, ultimately affecting Airtel’s ability to provide seamless services to its customers in Kano State (Usman & Ibrahim, 2024).
This study seeks to examine how Airtel Nigeria manages its supplier relationships in Kano State, identify the challenges it faces, and assess the impact of SRM practices on operational performance and cost reduction.
Objectives of the Study
1. To assess the SRM practices employed by Airtel Nigeria in Kano State.
2. To evaluate the effectiveness of these practices in improving supplier performance and operational efficiency.
3. To identify challenges in managing supplier relationships in Kano State and recommend strategies for improvement.
Research Questions
1. What SRM practices are employed by Airtel Nigeria in Kano State?
2. How effective are Airtel Nigeria’s SRM practices in improving supplier performance and operational efficiency in Kano State?
3. What challenges does Airtel Nigeria face in managing supplier relationships in Kano State?
Research Hypotheses
1. There is a significant relationship between SRM practices and supplier performance in Airtel Nigeria, Kano State.
2. Effective SRM practices significantly improve operational efficiency in Airtel Nigeria, Kano State.
3. Challenges related to infrastructure and logistics negatively impact the effectiveness of SRM practices in Airtel Nigeria, Kano State.
Scope and Limitations of the Study
This study will focus on Airtel Nigeria’s SRM practices in Kano State, particularly in relation to procurement and supplier performance. The research will involve interviews with supply chain managers, procurement officers, and suppliers in the region. Limitations of the study include potential access issues to proprietary data, a lack of participation from some suppliers, and the difficulty in isolating the impact of SRM practices on operational efficiency due to the complex nature of Airtel’s supply chain.
Definitions of Terms
• Supplier Relationship Management (SRM): A strategic approach to managing an organization’s interactions with its suppliers to maximize the value of the relationship.
• Supplier Performance: The ability of a supplier to meet agreed-upon requirements, such as timely delivery, quality, and cost.
• Operational Efficiency: The ability to deliver products or services in a cost-effective manner while maintaining high standards of quality and customer satisfaction.
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