EFFECT OF SUPPLIER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PROFITABILITY: A STUDY OF EUROFOAM KADUNA, KADUNA STATE

This research work sought to examine the effect of supplier relationship management on organizational profitability a study of Eurofoam Plc Kaduna, Kaduna State Nigeria. Effective Supplier Relationship Management (SRM) can significantly boost organizational profitability by fostering collaboration, improving efficiency, and ultimately reducing costs. Strong SRM practices lead to better negotiation, enhanced quality, and minimized disruptions, ultimately contributing to a more efficient and profitable operation. The study aim to determine whether supplier relationship management has a significant effect on organizational profitability at Euro foam Plc, Kaduna. The study adopts descriptive design with a research population comprising the 70 staff members of the company, out of which 60 was arrived at as the sample size using the formula of Taro Yamane (1967). The Questionnaire was used as the main instrument for data collection and analysis was done using frequency tables and simple percentages. The findings from the study revealed that there is a positive and significant effect of supplier sourcing on organizational profitability in Eurofoam Kaduna, Kaduna state. In addition, the study disclosed that there is a positive and significant effect of supplier development on organizational profitability in Eurofoam Kaduna, Kaduna state. Also the study discovered that there is a positive and significant effect of supplier segmentation on organizational profitability in Eurofoam Kaduna, Kaduna state. Consequently, the study recommends that the management of Eorofoam Plc Kaduna should focus on improving the process of identifying and selecting suppliers to ensure higher organizational profitability. This can be achieved by conducting thorough market research to identify potential suppliers, evaluating their capabilities, reputation, and track record. Also the management should also establish clear criteria for supplier selection and conduct regular evaluations to ensure suppliers continue to meet expectations.