The relationship between supplier selection and organisation performance in Uganda: A case of the Ministry of Local Government

Abstract

The study established the relationship between supplier selection and organisation performance in Uganda. A case of the Ministry of Local Government. The specific objectives were to: Examine the influence of solicitation on organisation performance; establish the effect of supplier evaluation on organisation performance and finally, examine the effect of due diligence on organisation performance. A case study design was used, adopting both qualitative and quantitative approaches. A population of 220 respondents was identified and a sample of 136 respondents drawn using the simple and purposive sampling techniques. From a sample of 136 respondents, 103 managed to take part in the study, implying a response rate of 76%. Findings revealed a positive relationship between solicitation (.298**), evaluation (.186**) as well as due diligence (.494**) and organisation performance. It was thus concluded that right documentation was key to successful bidding while predefined PPDA rules and regulations with right specifications were crucial to a successful procurement process. It was also noted that open bidding reflects transparency and quality of products/services, reliability, lowest costs and history of supplier performance is very vital for the entire procurement process. It was therefore recommended that: the evaluation committee carries out reference checks and site visits in order to select the most competent supplier; that standard bidding documents should be adopted and adhered to by both the suppliers and the PDU; the evaluation criterion emphasises aspects like past performance, on-time delivery, reliability and quality of products, besides the lowest cost quoted and finally, the procurement team of MoLG should conduct unannounced company site visits to the respective suppliers before contract award.