The effect of suppliers contract management on organizational performance: Case study Crown Beverages Ltd.

Abstract

The study was at aimed assessing the effect of supplier contract management on organizational performance a case of Crown Beverages Limited. The study was aimed at establishing the effect of Contract objectives and organizational performance, accessing the effect of Contract relationship on organizational performance and establishing the relationship between Monitoring and Evaluation and organizational performance The study employed Case study research design using a quantitative and qualitative research paradigm in which a case study research design was employed to collect data from 127 respondents using structured questionnaires, and interviews. The study found out that contract objectives have enforced value preserving governance structures, triggered the entire services’ network, simplified compliance with the newly centralized procurement function, captured procurement expertise and it has encouraged suppliers to adopt environmentally friendly processes. Furthermore, it was exposed contract relationship has ensured sustainability, value preserving governance structures, transfer of procurement expertise, ease compliance with the function in the organization and it has helped in boasting the company’s revenue. From the study, it was also concluded that Monitoring and Evaluation has provided visibility into contracts, reduced risks, enhanced application of the most appropriate Contractual Relationship, compliance to contract requirements and it has ensured efficient coordination of each of the parties’ time and skills thus promoting effective operations. It was recommended that monitoring and Evaluation should be done as a regular process of evaluating agency performance and should be based on measurable service deliverables and verifying agency compliance with the terms and conditions in the contract with the organization. It was also recommended that the organization adopt the use of a monitoring instrument which specifies the activities that will be evaluated, the tests and procedures to be applied, the methodology for determining the specific transactions/units of activity that will be examined and tested