Supplier relationship management and the performance of the private sector institutions in Uganda

Abstract

This study sought to investigate the effect of supplier relationship management on the performance of the private sector institutions in Uganda. Procurement is seen as an organized approach to defining what the organization needs and want from a supplier and establishing a link to obtain these needs but if the organization fail to consider the interpersonal component it eventually find that this failure has serious consequences for their operational performance. The objectives of the study included; to examine the effect of transactional supplier relationships on the performance of private sector institutions in Uganda, to establish the effect of collaborative supplier relationships on the performance of the private sector institutions in Uganda and to determine the effect of alliance supplier relationships on performance of the private sector institutions in Uganda. A case study of Uganda Martyrs University Nkozi was adopted with a study population of 32 and a sample size of 30. The study instruments completed and returned represents about 100%. Data was collected using questionnaires which were analyzed to come up with the research findings. The data was analyzed using descriptive statistics computed using SPSS version 16. The study found that transactional supplier relationships affect the performance of private sector institutions in Uganda. It also revealed that it is important for private sector institutions to use collaborative supplier relationships for material purchases to archive value for money in the private sector institutions. Further still, it establishes that supplier alliances have got an effect on the performance of the public sector. The conclusions of the study suggested that transactional supplier relationship was good for non-commodity items which include the stationary items and this is normally should be used in cases of emergency, it was also concluded that collaborative supplier relationship is important for institutions to expand the scope of interaction with them beyond purchasing and fulfillment transactions and that alliances supplier relationship should be tailored based on mutual trust, openness, shared risk and shared rewards and this brings able efficiency and effectiveness in the institution. The study recommended that supplier relationship management is very vital and therefore needs more attention as it determines the direction of the procurement function and transactional supplier relationships be used mainly for non-commodity items, collaborative supplier relationship be used for high value purchases where as alliance supplier relationships for risky and out sourcing purposes. In conclusion, supplier relationship management is established to be a critical factor in performance of private sector institutions in Uganda. This is because suppliers are the key people in the supply chain who drive the competitive advantage which determine the performance of the private sector institutions. There is need for urgent consideration of effective supplier relationship management in the private sector institutions in Uganda.