The following hypothesis will guide this project
Hypothesis 1: the quantity required to supplied influences the choice of the of the poor supply. The choice would depend on the reject quantity.
Hypothesis 1-A: The small the supplier the would be more likely to be poor needing development program.
Hypothesis 1-B: The big the supplier would show a positive correlation with successive supply needing little development attention
Alternative explanations for the quantity used to rate the suppliers can be given: It is very essential to note that the quantity supplied is not the only factor which influences the suppliers. The other factors which have very strong potential to influence the supplying can be grouped into two categories: investment made and entry strategies to the market.
Hypothesis 2: Investment amount of the company influences the supplying ability of suppliers thus their rating.
Hypothesis 2-A: The cost orientation investment strategy would be positively related to the supplying ability.
Hypothesis 2-B: The market orientation investment strategy would have a positive correlation with the quantity supplied.
Hypothesis 3: The choice of the poor suppliers would be different according to the development plan designed.
Hypothesis 3-A: If reject quantity chosen as is 62, then higher would be the probability that the development program would be chosen as a solution.
Hypothesis 3-B: The development strategy would show a positive correlated with the most suppliers.
Control variables: In addition to investment and reject quantity strategies, there also exists a number of factors which are closely related to the supplier. These factors include firm size, age, labor union, and industry structure. All of these factors exert their influence on the amount of supplier organization can make. These variables are quite able to explain a part of the the differences in the supply ability between different suppliers. They will be, therefore, included in the analysis as control variables.
Result: the excel table depicts the findings of the survey carried out to portray the supplying situation of suppliers.
The table has been constructed on the basis of the findings from data survey, and the sample survey of randomly selected 59 suppliers. The excel table indicates that suppliers tend to be poor base on the reject quantity while others have medium supply. However, an important point to be noted is that firms with more than 62 quantities are medium and high rated. As far as this rating is concerned firms with more than 62 have higher reliability to supply with easy. From the answers no clear investment amount has been reflected for high rated firms as, well as medium rated firms. Both high and medium firms are large target amount of goods supplied per month.
For most firms rating gradually increases according to the length of time they have been in business and the amount of investment. Development program requires entry-level that is usually minimal 62 without consideration of increasing with seniority at the firm. However, the selected firms show no such pattern. A hike in rate takes place for rate of rejecting more companies will join the development program creating endless queue. Therefore increase in rate of rejecting is not age based, but performance based.
Supply development program will help suppliers grow at a faster rate and become a a stable organization for the good of the country and this requirement in most countries and each country has regulations relating to procurement and supplies to ensure that the future generation needs can be satisfied by local suppliers. The future generation will find rely on foreign suppliers if supplier development program will not be properly implemented to include all supplying needs for the country. And in any country to have sustainable development they must have a a good supplying system.
The information required for good supplying program is categorized in three broad heads, namely, investment and economic, size of the company and marketing strategies as well as finances of the company.