Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

The Impact of Supplier Selection on the Relationship Marketing Performance of Independent Retailers in South Africa

Author(s): Makhitha, K.M

The importance of supplier selection has been widely publicised and cannot be overemphasised. Businesses of all sizes are involved in supplier selection and evaluation from time to time since they have to purchase goods and services. Since independent retailers are in the business of buying and selling, selecting the right suppliers and selling the right goods and services are of great importance. Supplier selection is known to influence the performance of a business. Therefore, independent retailers must determine the supplier selection they use to evaluate suppliers so as to influence the performance of their businesses. A survey was conducted among 105 independent retailers in South Africa, using convenience sampling. The purpose of the study was to determine the supplier selection criteria that they use. The study further purported to determine the impact of supplier selection on the performance of independent retailers. The results indicate that total cost and quality as well as supplier innovation are the most important criteria for independent retailers during the selection of suppliers. Education and years of business operations were found to have influence on the supplier evaluation criteria used by independent retailers.