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







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.

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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)




Puttalam branch employees and their feedback.

49

Union place employees’ satisfaction survey exposed according to the (slide 3.9 and 3.10)




Union place branch employees and their feedback.

Kandy branch employees’ satisfaction survey exposed according to the (slide 3.11 and 3.12)


staff satisfied with the branch by 92.5 percentage


Kandy branch employees and their feedback.

Kekirava branch employees’ satisfaction survey exposed according to the (slide 3.13 and 3.14)


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.

50

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

=http%3A%2F%2Feprints.qut.edu.au%2F4156%2F1%2F4156.pdf&ei=EaiyVN3SIMy8uATizI

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

https://www.google.lk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&sqi=2&ved=0CDcQFj

AE&url=http%3A%2F%2Fwww.ncaslsouth.com%2FPAYMENTS.pdf&ei=f4cOVd3iM5K3uQ

S3_YHgBA&usg=AFQjCNGclPCATkDchfPm2yUSzy7a647H3g&bvm=bv.88528373,d.c2E&c

ad=rja

http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/financial_system_stability_review/fssr_20

13e.pdf

http://www.slideshare.net/search/slideshow?searchfrom=header&q=documentation+in+research+methodology

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=http%3A%2F%2Feprints.qut.edu.au%2F4156%2F1%2F4156.pdf&ei=EaiyVN3SIMy8uATizIKQDg&usg=AFQjCNE05OgV3d35E3YcHirFPJNvLBTG6A&bvm=bv.83339334,d.c2E&cad=rja




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

https://www.google.lk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&sqi=2&ved=0CDcQFjAE&url=http%3A%2F%2Fwww.ncaslsouth.com%2FPAYMENTS.pdf&ei=f4cOVd3iM5K3uQS3_YHgBA&usg=AFQjCNGclPCATkDchfPm2yUSzy7a647H3g&bvm=bv.88528373,d.c2E&cad=rja




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