Dissertation- RASNATH 01st of JULY 2015 UPDATED
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Transcript of Dissertation- RASNATH 01st of JULY 2015 UPDATED
1
Contents
Declaration ……………………………………………………………………………………………….... I
Acknowledgement ………………………………………………………………………………………....II
Executive Summary………………………………………………………………………………..……...III
Chapter 1: Introduction
1.1 Introduction to the organization……………………………………………………………….3
1.2 Background of the problem…………………………………………………………………....6
1.3 Research problem……………………………………………………………………………...7
1.4 Research question……………………………………………………………………………...8
1.5 Research objective……………………………………………………………………………..9
1.6 Scope of the research………………………………………………………………………..10
1.7 Research methodology…………………………………………………………………...…..12
1.8 Limitations…………………………………………………………………………………....14
Chapter 2: Theoretical Background & Literature Review ……………………………………………15
2.1 What’s Documentation……………………………………………………………………….15
2.2 Why Documentation is important…………………………………………………………....15
2.3 Features of Good Documentation Process……………………………………………..…….16
2.4 What are the reasons for Process delays in service sector……………………………………16
2.5 The Challenges of the Documentation………………………………………………..………17
2.6 Solutions to documentation problem…………………………………………………………18
2.7 Documentation System…………………………………………………………………….....19
2.8 Simplified production system…………………………………………………………….…..19
2.9 Impact of payment delays on business profits………………………………………………..20
2.10 Relationship between the supplier payment and financial organizations………….………..21
2.11 Late payment Real causes……………………………………………………………..….....24
2
2.12 How late payment impacts to the Financial system stability…………………………….…24
Chapter 3: Presentation of Data and Analysis…………………………………………………………27
3.1 Employee Satisfaction Questionnaire question number 01………………..……………..28
3.2 Employee Satisfaction Questionnaire question number 02………………………………29
3.3 Employee Satisfaction Questionnaire question number 03………………………...…….30
3.4 Employee Satisfaction Questionnaire question number 04……………………….……...31
3.5 Employee Satisfaction Questionnaire question number 05…………..…………………..32
3.6 Employee Satisfaction Questionnaire question number 06……………………………....33
3.7 Employee Satisfaction Questionnaire question number 07……………..………………..34
3.8 Employee Satisfaction Questionnaire question number 08………………………………35
3.9 Employee Satisfaction Questionnaire question number 09………………...…………….36
3.10 Employee Satisfaction Questionnaire question number 10……………….…………….37
3.11 Supplier Satisfaction Questionnaire question number 11……………….………………38
3.12 Supplier Satisfaction Questionnaire question number 12…………..…………………...39
3.13 Supplier Satisfaction Questionnaire question number 13……………………………….40
3.14 Supplier Satisfaction Questionnaire question number 14……………...………………..41
3.15 Supplier Satisfaction Questionnaire question number 15……………...………………..42
3.16 Supplier Satisfaction Questionnaire question number 16……………...………………..43
3.17 Supplier Satisfaction Questionnaire question number 17……………...………………..44
3.18 Supplier Satisfaction Questionnaire question number 18……………...………………..45
3.19 Supplier Satisfaction Questionnaire question number 19……………...………………..46
3.20 Supplier Satisfaction Questionnaire question number 20……………...………………..47
Chapter 4: Discussion …………………………………………………………………………………...48
Chapter 5: Conclusion and Recommendations ……………………………………………………..…54
References……………………………………………………………………………………………….. 69
3
List of Figures
Figure 1: Scope of the research …………………………………………………………………………...11
Figure 2: Simplified production system…………………………………………………………………...20
Figure 3: Increases in the supplier curve in the graph………………………..………………………..….22
Figure 4: Decrease of supplier curve in the graph………………………………………………………...23
List of Tables
List 1: Central Bank of Sri Lanka financial asset and liability sector growth…………………………........25
List 2: Central Bank of Sri Lanka financial profitability sector growth………………………………........26
4
Chapter 1
1.1 Introduction of the Organization
People’s Leasing Finance PLC Founded in 1995, Sri Lanka's unshakable and giant leader in the
leasing sector. In the past 14 years, People's Leasing has built an extraordinary tradition of
excellence in all spheres of leasing and we are now the established market leader. Our customers
range from individuals to SMEs to blue chip companies in every corner of the island. We have
contributed immensely to the country's economic growth and the quality of life of millions of Sri
Lankans.
The People's Leasing Group has recently diversified to include five subsidiaries, united under the
PLC name. Customers can now obtain Insurance, Finance, Property Development; Microfinance
especially Islamic Finance and Fleet Management services under one roof.
Our user-friendly product range, nationwide outreach and strong foundation of talented
management and staff have made the Company immensely profitable. We are now a major
contributor to the success of our parent company, People's Bank. As a subsidiary of People's Bank,
the group enjoys government protection along with private sector flexibility.
The PLC philosophy
To respond to all stakeholders with deliverable core values of
Economic Viability.
Social Accountability.
Environmental Responsibility.
5
Vision of the Group
To become legendary in the financial service scene as a provider of customer-friendly, creative and
innovative total solutions.
Mission of the Group
To provide dedicated value added customer service to accomplish organizational service excellence whilst
maintaining a sustainable competitive advantage.
We Offer Following Products and Services
Leasing and Hire Purchases
Loans
Insurance
Islamic Finance
Micro Finance
Investments
Fleet Management
Property Development
E-Friends
6
1.2 Background of the Problem
“To make bullet supplier payments and get back higher satisfaction of them” Delayed
payment against supply of materials & services is one of the causes of dis-satisfaction amongst
suppliers in many organizations. Maintaining good business relationship with dis-satisfied
suppliers become a difficult task for Purchase Managers. At the same time, good business
relationship is essential to ensure uninterrupted supply of materials as per requirement in the
organization.
Companies give lot of attention on customer satisfaction and do not leave any stone unturned to
improve upon the same. Supplier’s satisfaction is also equally important for conducting sustainable
& competitive business in the organization on long term basis.
I wish to share an incident on delayed payment pertaining to a Leasing industry, which was handled
and addressed at organization level. Suppliers’ payment against delivery of materials & services
was getting delayed due to the insufficient proper department staffs or officers.
Following key issues were highlighted
Number of staffs only doing extra works and having extra responsibilities.
There’s unavailable staff for particular activity, but the work has done by with the other
staff stressfully.
Lack of department staff.
Lack of team work.
7
1.3 Research Problem
According to this research currently many financial organization suffering from “payments” that
is one party such as company or person paying a amount of money for fulfill the legal obligation
by goods or service.
Many organizations presently delivering the goods or service on time but they may getting delay
in receiving their service payments because of less efficiency and effort etc. of the company.
Therefore, this study research statement is to “identify the major reasons for supplier payment
delay in financial sector!!”
Justification
How we are Unshakable and giant leader in the leasing sector past in the past last 14 years??
According to this research problem each and every organization facing day by day work they do
not know about how strategically solves this problem. Any organizations fundamental activity is
maintaining superior documentation or underwriting activities. Therefore organization growth
depends on the supplier payment as well.
People's Leasing & Finance PLC wishes to maintain an open and honest relationship between
potential and present stakeholders. The company's financial and non-financial information is
disclosed timely and transparently according to our internal guidelines and all statutory laws and
8
regulations thus satisfying the information requirements of our stakeholders and enabling them to
make timely and correct decisions.
Shareholder information is therefore prepared to provide valued information to stakeholder in a
timely, correct and meaningful manner. Our shareholders and potential investors get reliable
picture of People's Leasing & Finance PLC in terms of its current financial position and expected
future developments. We strive to achieve the trust of all our stakeholders on which we can build
and maintain long term and successful relationships. This shareholder information supplement
provides briefly information on the awards & achievements, financial performance, stock
exchange listing, credit rating, share trading and shareholders together with other information
required to be presented to the stakeholders.
Therefore, this study research statement is to
To identify major reasons for supplier payment delay in financial sector.
1.4 Research Questions
Subsequent to the literature review and other sources the research question developed for this
study is to…
1. How often supplier’s make their payments delayed?
2. Is there a pattern for this?
3. What are the root causes for the delay in payment?
9
1.5 Research Objective
1. To identify reasons for supplier’s payment delay.
2. To make suggestions to over cause for the above causes.
According to this research here justifying that each and every organization depends on the
customers and the suppliers. Especially we have to maintain a superior supplier chain management.
Which is does not focus on the flow of physical goods. Focuses on human resources and support
services. The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet.
10
1.6 Scope of the Research
This research conduct for who are struggling with poor supply chain management, who are
suffering from delay supplier payments, who are unable maintain their suppliers and customers.
Who does not have a proper documentation or new method? The mainly disclose of this research
is exposing the importance of the documentation that effects the supplier payments and
organization growth etc.
Therefore taken this research as a fore guidance for strengthens the organization to who are unable
to maintain a proper supply chain management or customer relationship etc. And to get lead and
compete the competitors organization and implement new competitive strategies to operational
works. Here conducted my research in selected seven branches of a People’s Leasing and
Finance PLC by issuing questionnaire to suppliers and to the branch staffs for scale satisfaction of
their suppliers regarding the supplier payment delay and root causes for the delay in payment.
11
Branch
Area
Staffs
Client
Figure Number
• 01 • Scope of the research
• Survey data
12
1.7 Research methodology
This research conduct as system of two methods.
Research Type:
The research type which would be can conduct internally and selected seven branches. This would
be conduct by sample.
Population:
These are entitled for the research problem. To identify major reasons for supplier payment delay
in financial sector and root causes for the delay in payment.
Sample:
It is subset of the population. Which is shows how we are conducting the research. It is conducting
by provide questionnaires to branch staffs and the clients. Thereby the total sample size is seven.
13
Data Collection Method.
Data Analysis Method.
This research compromised the finance sector that describes supplier payment delays. Therefore
analyzing by issuing questionnaires to staffs and clients who are attached with the finance sector.
14
1.8 Limitations
As for the limitation occur when doing the research done in an experiment and study by issuing
questionnaire to the branch staffs, suppliers and customers to overall of the people’s leasing and
finance PLC branches.
And also identified some sort of problems by facing the customer and supplier face to face they
expose the irrelevant that noted from studying the customers and suppliers.
15
2.0 Literature Review
2.1 What’s Documentation?
• “Documentation” is what’s written on paper.
• You need documentation because courts, lawyers, social service agencies, and a lot of other
people make decisions by looking at what’s written on paper.
• Documentation helps you to convince these people that what you are saying is true so they
are more likely to make decisions that help you.
2.2 Why Documentation is important?
Future references
If something goes wrong, you can reference what you did
Provides information to someone filling in for you
Protecting the employee and the organization.
Checking for understanding
Creating a history.
Give visibility to future dependencies and design conflicts
On time delay of payments.
Impact of delays on business profit
Customer satisfaction principles at service and marketing factor.
16
2.3 Features of Good Documentation Process.
Coverage: Code that is and is not documented is easily identifiable.
Accuracy: The code comments accurately describe the code reflecting the last set of source
code changes.
Clarity: The system documentation describes what the code does and why it is written that
way.
Maintainability: A single source is maintained to handle multiple output formats, product
variants, localization or translation.
Synchronization: The code and documentation are linked to keep them in update.
Documents remain legible and readily identifiable
Approve, review and update documents
Create value for the organization operating the process
2.4 What are the reasons for Process delays in service sector?
Projects can be delayed for a large number of reasons and usually impact on cost and time. Project
delays can plague any industry, any team and any individual project. A project delay can represent
a costly occurrence for any organization. Therefore, it is important for an organization to
understand what causes a delay and how to prevent delays from occurring.
17
Client document submission delay.
Punctuality of the customer.
Punctuality of the supplier.
Poor contact between supplier, customer & the organization.
Subcontractor delay.
Customer is not in stable mind.
Shipping delays.
Payment or rental plan changed by Customer.
Inadequate information convey to customers by organization particular officers.
Late Initial payment by Customers.
Poor communication between the documentation staff and customer or supplier.
Late deliveries.
2.5 The Challenges of the Documentation.
Expensive, time-consuming; the cost of the documentation may outstrip its value
Written by people who can't write or who don't know the material
Hard to read; too dry, too terse
Vague; not clear
Incomplete
Assumes knowledge readers don't possess
Misleading
18
Outdated
Difficult to maintain; when you need to change it, you can only find a paper copy.
Sufficient documentation staff for the divisions & departments.
Pressure of higher authority staff for give importance his works.
Within two days supplier payment.
Explaining about the procedure to inadequate suppliers or agents.
inadequate or limited time for completing the assignment
Absence of primary data by marketing officers.
2.6 Solutions to documentation problem
Document problems separately from the working system. A list of known bugs released
with a product is okay, but trying to turn the user into a component of the development
chain is not. Thus come the complaints about adding workarounds and "fine print" to the
docs as opposed to fixing the turn problems in the first place.
Maintain documents just like you maintain code. If a product changes such that module
interfaces change or the user's operation changes then that change needs to be noted.
Recruit the staffs for the particular department not only considering the branch target but
also considering the branch number of out puts.
19
2.7 Documentation System
The Documentation system is a part of an every organization. This produces products of an
organization. It is that activity whereby resources, flowing within a defined system are combined
and transformed in a control manner to add value in accordance with the policies communicated
by management.
2.8 Simplified production system
• Men
• Machine
• Material
• Information
• Capital
Inputs
• Product design
• Process planning
• Production control
• Maintenance.
Transformation• Products.
• Services.
Outputs
Quality
Cost
20
2.9 Impact of payment delays on business profits.
When is payment late?
Where there is an agreed credit period and the supplier has agreed, either writing or orally a credit
period with the purchaser, the payment is late if it’s made after the last day of the due date. Some
people have accounting processes that take a long time to make payments because bad accounting
system. No business should have to wait for more than 60 days for payment from private company,
or 30 days if the payment is from a public sector body. If it’s happen according to the guideline
the business is fair. If not borrower may pay the interest for unpaid time.
When the late payments there are direct and indirect losses to business organization. Such as
Lost employee income and business profits associated the firms.
Lost employee income and business profits associated the other firms.
The issue of late payment has been considered one of outmost important to all contractors and to
a lesser extent to those to expect speedy completion of a contract. As a matter of fact late payments
are considered to the one of the main factors that has led some Contractors to abandon the contract.
Figure Number
• 02 • Simplified production system
• Survey data
21
If its payment delays happen in every branches in the organization that would led to bad impact to
the organization and their culture. First of all one particular branch’s suppliers who are suffering
to get on time payment. That effects our suppliers never introduce new clients repeatedly to the
particular financial organization and also they may spreading the rumors about particular branch
in the area. This is the positive point of the competitors in the particular area. Competitors provide
healthiest supplier payment and attract their customers and make satisfy them, automatically new
business going to the competitors company. The particular organization gone down. If it’s happen
around the country in each branches. This would lead to affect the whole supplier’s businesses and
their growth. They avoid providing the new businesses to the same organization again. The
origination growth depends with supplier as well. Which impact to the organization profits, future
profits, share prices, goodwill etc. Going down.
2.10 Relationship between the supplier payment and financial organizations
The relationship between the supplier payment and the finance organization, if it’s positive its sense of if
the financial organization paid their payments on time without delay they might provide more and more
business in future to the particular organization. Its effect,
Figure number 03: In terms of increases in the supplier curve in the graph
22
If the relationship is negative between the suppliers and the finance company, in the sense of the
finance company paying their payments on delay it’s caused the finance company lose their future
businesses and make dissatisfaction of their suppliers. Which caused they might never provide
new businesses the same finance company. Its effect,
Figure Number
• 03• Increases in the
supplier curve in the graph
• Theory
23
Figure number 04: In terms of decrease of supplier curve in graph
Therefore if the positive supply happen price would be gone down and quantity also increased. If
the negative relationship happen increased in the commodity price and the make higher demand
for the product.
At the same time the supplier never give the businesses to the particular organization due to the
payment delay.
Figure Number
• 04• Decrease of
supplier curve in graph
• Theory
24
2.11 Late payment Real causes
Going deeper into the analysis of the phenomenon it is clear that in most of the cases,
Late payments result from a lack of capacity from the borrowers/employers to
Manager. Some businesses pay late because of their sales, receivables and inventory cycles,
Or operational practices that are customary in their industry. Late payment affects to the
organization in two sectors.
I. Profit Sector
While late payment happens current suppliers provide future business to competitors’
organization due to late payment receivables.
II. Social status
This would lead about organization negative impact by the suppliers spreading rumors due
to the late payment.
2.12 How late payment impacts to the Financial system stability
Financial system stability means a safe and secure financial system which is able to withstand
external and internal shocks. A stable financial system creates a favorable environment for
depositors and investors, encourages financial institutions and markets to function effectively and
efficiently, and hence, promotes investment and economic growth. Financial system stability
requires a stable financial and economic environment within an effective regulatory framework
and a safe and robust payment and settlement system. The maintenance of financial system
stability entails identifying and addressing potential vulnerabilities and risks to the financial
system.
• Creating a trust-worthy and enabling environment favorable to savers and investors.
• Helping the transmission of monetary policy, thereby assisting the attainment of price
stability.
• Encouraging efficient financial intermediation, which eventually promotes investment
and growth.
• Encouraging effective and efficient operation of markets and improving distribution of
resources in the economy.
25
• According to the Central Bank of Sri Lanka (CBSL) last 2013
financial sector growth of asset, liabilities and profitability.
26
27
Chapter 3: Presentation of Data and Analysis
It is conduct for how often suppliers’ make their payments delayed? Are there any pattern for this?
What are the root causes for the delay in payments?
Therefore here selected seven branches of people’s Leasing Finance PLC randomly and issued
questionnaire to operational staffs who are directly involving to make the supplier payments and
issued the questionnaire to branches’ customer or supplier for measure the satisfaction of their
branches below mentioned separately.
Initially issued questionnaire to Head office operational staffs and to their customers or suppliers
and as follow issued the same questionnaire to other branches’ employees and their clients.
28
EMPLOYEE SATISFACTION
3.1 QUESTION NUMBER 01
I am always treated fairly by manager
• According to the questionnaire question number 01 is I am always treated fairly by
manager which impose above mentioned five branches only strongly agreed other two
branches only agreed with their branches.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
5 2
29
QUESTION NUMBER 02
3.2 The leaders of my branch really know what they are doing.
• According to the questionnaire question number 02 the leaders of my branch really know
what they are doing. Which impose above mentioned seven branches are strongly agreed
with statement.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
7
30
QUESTION NUMBER 03
3.3 There is an atmosphere of trust at my company.
• According to the questionnaire question number 03 is there is an atmosphere of trust at my
company which impose above mentioned six branches only strongly agreed and one and only
branch agreed with their branch.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
6 1
31
QUESTION NUMBER 04
3.4 I receive useful and constructive feedback from my manager.
• According to the questionnaire question number 04 I receive useful and constructive
feedback from my manager which impose above mentioned six branches only strongly
agreed and one and only branch agreed with their branch.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
6 1
32
QUESTION NUMBER 05
3.5 Everybody is treated fairly at my company.
• According to the questionnaire question number everybody is treated fairly at my company.
Which impose above mentioned seven branches are only agreed with statement.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
7
33
QUESTION NUMBER 06
3.6 I am very satisfied with my manager.
• According to the questionnaire question number 06 is I am very satisfied with my manager
which impose above mentioned five branches only strongly agreed other two branches only
agreed with their branches.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
5 2
34
QUESTION NUMBER 07
3.7 The action of our senior leaders support my branch’s mission and value
• According to the questionnaire question number 07 the action of our senior leaders support my
branch’s mission and value which impose above mentioned four branches only strongly agreed
other three branches only agreed with their statement.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
4 3
35
QUESTION NUMBER 08
3.8 My manager values my talents and the contribution I make
• According to the questionnaire question number 08 my manager values my talents and the
contribution I make which impose above mentioned one particular branches only strongly
agreed other five branches only agreed and the one branch has neutral their statement.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
1 5 1
36
QUESTION NUMBER 09
3.9 I have a clear understanding of my company’s strategic goals.
• According to the questionnaire question number 09 is I have a clear understanding of my
company’s strategic goals, which impose above mentioned five branches only strongly agreed
other two branches only agreed with their branches.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
5 2
37
QUESTION NUMBER 10
3.10 I understand how my work directly contributes to the overall success of my company.
• According to the questionnaire question number 10 I understand how my work directly
contributes to the overall success of my company which impose above mentioned six
branches only strongly agreed and one and only branch agreed with their branch.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
6 1
38
SUPPLIER SATISFACTION
3.11 QUESTION NUMBER 01
I understood the term & conditions of the contract with Organization.
• According to the questionnaire question number 01 I understood the term & conditions of
the contract with Organization which impose above mentioned four branches’ suppliers
strongly agreed other three branches’ suppliers agreed with their statement.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
4 3
39
QUESTION NUMBER 02
3.12 I received periodic communication changes.
• According to the questionnaire question number 02 I received periodic communication
changes which impose above mentioned Kandy branch’s suppliers strongly agreed other six
branches’ suppliers agreed with their statement for they received periodic communication
changes.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
1 6
40
QUESTION NUMBER 03
3.13 The purchase order & the schedules are made & sent based on capacity to supply.
• According to the questionnaire question number 03 The purchase order & the schedules are
made & sent based on capacity to supply which impose above mentioned four branches’
suppliers strongly agreed other three branches’ suppliers agreed with their statement
questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
4 3
41
QUESTION NUMBER 04
3.14 You are informed properly about the rejection & defects by the branch
• According to the questionnaire question number 04 you are informed properly about the
rejection & defects by the branch which impose above mentioned two branches’
suppliers are strongly agreed other five branches’ suppliers are only agreed with their
statement questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
2 5
42
QUESTION NUMBER 05
3.15 I receive purchase orders with agreed lead times to supply
• According to the questionnaire question number 05 I receive purchase orders with
agreed lead times to supply which impose above mentioned five branches’ suppliers are
strongly agreed and other two branches’ suppliers are only agreed with their statement
questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
5 2
43
QUESTION NUMBER 06
3.16 I receive payment within or by the end of the agreed period
• According to the questionnaire question number 06 I receive payment within or by the
end of the agreed period which impose above mentioned four branches’ suppliers are
strongly agreed and other three branches’ suppliers are only agreed with their statement
questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
4 3
44
QUESTION NUMBER 07
3.17 I receive orders which are well prioritized.
• According to the questionnaire question number 07 I receive orders which are well
prioritized which impose above mentioned three branches’ suppliers are strongly agreed
and other four branches’ suppliers are only agreed with their statement questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
3 4
45
QUESTION NUMBER 08
3.18 I know whom talk to the buyer/ supplier
• According to the questionnaire question number 08 I know whom talk to the buyer/
supplier which impose above mentioned Puttalam branch suppliers are strongly agreed
and other six branches’ suppliers are only agreed with their statement questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
1 6
46
QUESTION NUMBER 09
3.19 I can talk without any language barriers
• According to the questionnaire question number 09 I can talk without any language
barriers which impose above mentioned six branches’ suppliers are strongly agreed and
Thambuththegama branch’s suppliers are only agreed with their statement questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
6 1
47
QUESTION NUMBER 10
3.20 System processes are fair
• According to the questionnaire question number 10 System processes are fair which
impose above mentioned seven branches’ suppliers are agreed with their statement
questionnaire.
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
HEAD OFFICE
THAMBUTHTHEGAMA
CHILAW
PUTTALAM
UNION PLACE
KANDY
KEKIRAWA
7
48
Chapter 4: Discussion
I have conducted this research randomly selected seven branches of People’s Leasing & Finance
PLC. Therefore according to the questionnaire by employees and the suppliers.
Head office employees’ satisfaction survey exposed according to the (slide 3.1 and 3.2)
questionnaire supplier payment has made accurate and effective in 36 of 40 and the branch staff
satisfied with the branch by 90 percentage.
According to the supplier satisfaction survey 36 out of 40 or 90 percentage suppliers satisfied
with head office staffs and their feedback.
Thambuththegama employees’ satisfaction survey exposed according to the (slide 3.3 and 3.4)
questionnaire supplier payment has made accurate and effective in 29 out of 40 and the branch
staff satisfied with the branch by 72.5 percentage.
According to the supplier satisfaction survey 34 out of 40 or 85 percentage satisfied with the
Thambuththegama branch employees and their feedback.
Chilaw employees’ satisfaction survey exposed according to the (slide 3.5 and 3.6) questionnaire
supplier payment has made accurate and effective in 37 out of 40 and the branch staff satisfied
with the branch by 92.5 percentage.
According to the supplier satisfaction survey 31 out of 40 or 77.5 percentage satisfied with the
Chilaw branch employees and their feedback.
Puttalam employees’ satisfaction survey exposed according to the (slide 3.7 and 3.8)
questionnaire supplier payment has made accurate and effective in 37 out of 40 and the branch
staff satisfied with the branch by 92.5 percentage.
According to the supplier satisfaction survey 36 out of 40 or 90 percentage satisfied with the
Puttalam branch employees and their feedback.
49
Union place employees’ satisfaction survey exposed according to the (slide 3.9 and 3.10)
questionnaire supplier payment has made accurate and effective in 39 out of 40 and the branch
staff satisfied with the branch by 97.5 percentage.
According to the supplier satisfaction survey 36 out of 40 or 90 percentage satisfied with the
Union place branch employees and their feedback.
Kandy branch employees’ satisfaction survey exposed according to the (slide 3.11 and 3.12)
questionnaire supplier payment has made accurate and effective in 37 out of 40 and the branch
staff satisfied with the branch by 92.5 percentage
According to the supplier satisfaction survey 36 out of 40 or 90 percentage satisfied with the
Kandy branch employees and their feedback.
Kekirava branch employees’ satisfaction survey exposed according to the (slide 3.13 and 3.14)
questionnaire supplier payment has made accurate and effective in 35 out of 40 and the branch
staff satisfied with the branch by 87.5 percentage
According to the supplier satisfaction survey 35 out of 40 or 87.5 percentage satisfied with the
Kekirava branch employees and their feedback.
Suppliers are unable to submit their invoices on the due date or before the due date.
According to this finding Supplier questionnaire, question number 06 refers that receive
the payment before the grace period. Except the Thambuththegama, Puttalam and Chilaw.
Insufficient documentation staffs for the process of supplier’s payment. According to this
finding suppliers are well prioritized for their payments. Here Supplier questionnaire
question number 07 shows Head office, Puttalam and Kekirava branches as strongly
agreed, except other four branches.
Lack of communication between the buyers and suppliers,
According to the supplier questionnaire question number 02 & question number 08 expose.
Kandy and Puttalam branch strongly agreed with the statement except other five branches.
Those two branches strongly keeping update with the suppliers, customers than above
mentioned branches.
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Staffs working with over loaded and under pressure especially documentation staffs. Here
employee questionnaire question number 05 noticed that all branches are agree with the
statement, regarding about working with over loaded & under pressure.
Unable to process to provide suppliers’ payment quickly in less than 10 days. According
to the supplier questionnaire question number 06, Except Thambuththegama, Chilaw and
Puttalam. Other branches paying their supplier payment less than 10 days and above
mentioned 03 branches paying their payments on the grace period.
Working without deadline, According to this finding employee’s questionnaire question
number 02 noticed that the leader of my branch really knew all staffs are what they are
doing. Here seven branches’ Officer in Charge they are strictly looking each and every one.
Practicing the supplier payments first in first out (FIFO) basis. Here system process are fair
according to the supplier questionnaire question number 10 mentioned as per all branches
above following FIFO method.
Misunderstanding & miscommunication. According to this supplier questionnaire question
number 09 exclude Thambuththegama branch agree with the statement and other six
branches are strongly agreed they can handle the customers without any language barriers.
According to this research selected both branches’ employees and suppliers has
satisfied mostly out of 80 percentage, because of the People’s Leasing & Finance
PLC friendly approach with their customers and their employees.
51
Chapter 5: Conclusion and Recommendations
Reasons for Delay
• Suppliers unable to submit their invoices on the due date.
• Insufficient Documentation staffs and back office staffs for process suppliers’ payment.
• Company operating with insufficient working capital.
• Lack of communication between the buyer and the supplier.
• Documentation staff working with overloaded and under pressure.
• Unable to process to provide supplier payments quickly in less than 10 days.
• Working without deadline by documentation officers.
• Could not practice the FIFO (First in First Out) method.
• Lack of priorities.
• Misunderstand.
• Miscommunication.
• Bad accounting system.
• Practicing bad policies.
• Holidays.
• The authorized signatory for the cheque is not in the office.
Conclusion
This research was done with the objective of to identify the reasons for suppliers’ payment
delay and to make the suggestion to over causes for the above causes at People’s Leasing
and Finance PLC. Therefore if your organization faced suppliers’ payment delay mainly
the particular branch head or department head should follow first in first out basis method
and coordinate the processor for make the suppliers’ payment productively. Importantly
branch head or department head should focus on how many numbers of suppliers’ payment
made branch and also head should take an analysis or evaluation of how many suppliers
deal with our branch for business purpose per month after that only branch head might take
a decision. If it has done according to this suppliers’ payment might be fruitful.
The following action steps were recommended in achieving the project objective.
52
Recommendations
5.1 Operational Staffs
Operations assistants work with operations managers and other personnel to help keep businesses
running smoothly therefore initially explain operational staffs’ job description. Appoint sufficient
operational staffs to do the operational works and the back office works. Consider that per head
operational staffs ability to accomplish a job with a minimum expenditure of time and effort not
only considering the branch capacity,
Marketing staffs or Target of the branch target. Here recommended considering the operational
staffs output.
5.2 Training Programs
Provide relevant training programs and motivational programs to operational staffs, the marketing
officers and other staffs. Feed some operational knowledge to marketing officers for compulsory
basis for avoid future correctness. Recommend the employees to conduct professional courses for
improve their skills. When selecting school leavers for operational works before that train and
provide the knowledge thoroughly.
5.3 Strict the Officers
Look after the Operational staffs and Marketing officers would they provide accurate and complete
information to customers and suppliers according to the company guideline. Advise the marketing
officers to collect the needed relevant documents for process when the customer visits for first time
feeding the thorough knowledge and second time collect the documents when he visits.
5.4 Prioritize
To provide importance or prioritize for the payments to suppliers in First in First out (FIFO) basis.
In Government sector within thirty days have to release the supplier payment and in Private sector
less than a sixty days have to release a supplier payment to suppliers according to the Law.
53
5.5 Accounting System
Some people have accounting processes that take a long time to make payments then some people
may know they have bad processes and will just pay the penalties as well. Therefore recruit the
suitable and fully qualified accountants and cash officers.
5.6 Authorized Signatory power
Either the person to administer your cheque is not in the office, or they are on holiday, off sick, or
in meetings all day, those are ruined the present and future businesses. Therefore establish the
replacement signature due to the authorized signatory absenteeism.
Especially double check the credit files and other relevant documents before the
sending for payments never often likewise delays on the payments in future.
54
References
SOURCES- ONLINE
http://www.slideshare.net/search/slideshow?searchfrom=header&q=documentation+in+research
+methodology
http://www.webopedia.com/TERM/D/documentation.html
http://www.mtpca.org/TheImportanceofDocumentation.htm
http://docfacto.com/five-qualities-of-good-documentation/
https://www.google.lk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CCwQFjAC&url
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KQDg&usg=AFQjCNE05OgV3d35E3YcHirFPJNvLBTG6A&bvm=bv.83339334,d.c2E&cad=r
ja
http://smallbusiness.chron.com/causes-project-delay-31186.html
http://www.palgrave-journals.com/rlp/journal/v8/n3/full/rlp200911a.html
http://c2.com/cgi/wiki?ProblemsWithDocumentation
http://payontime.co.uk/the-late-payment-legislation-provides-interest-and-debt-recovery-costs
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http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/financial_system_stability_review/fssr_20
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55
Supplier Satisfaction Survey Questionnaire for supplier payment delay in Financial Sector
which is reference to People’s Leasing & Finance PLC- by Employees
Question Strongly Agree
(4)
Agree
(3)
Neutral (2) Disagree (1)
#1. I am always treated fairly by my
manager.
#2. The leaders of my branch really know
what they are doing.
#3. There is an atmosphere of trust at my
company.
#4. I receive useful and constructive
feedback from my manager.
#5. Everybody is treated fairly at my
company.
#6. I am very satisfied with my manager.
#7. The actions of our senior leaders
support my branch’s mission and values.
#8. My manager values my talents and the
contribution I make.
#9. I have a clear understanding of my
company's strategic goals.
#10. I understand how my work directly
contributes to the overall success of my
company.
56
3.6 Supplier Satisfaction Survey Questionnaire for supplier payment delay in Financial
Sector which is reference to People’s Leasing & Finance PLC- by Suppliers
Question Strongly
Agree
(4)
Agree
(3)
Neutral (2) Disagree (1)
#1. I understood
the term & conditions
of the contract with
Organization.
#2. I received periodic
Communication changes.
#3. The purchase order & the
the schedules are made
& sent based on capacity
to supply.
#4. You are informed properly
about the rejection & defects
by the branch
#5. I receive purchase orders with
agreed lead times to supply
#6. I receive payment
within or by the end of the
agreed period
#7. I receive orders which are
Well prioritized.
#8. I know whom talk to
the buyer/ supplier
#9. I can talk without
any language barriers
#10. System processes are
fair