Supply chain management practices and financial performance of private companies in Uganda: A case of Kazire Health Products Company Ltd Mbarara

Abstract

This study sought to establish the relationship between supply chain management practices and financial performance in private companies in Uganda with a case of Kazire Health Products Company Limited. The objectives of the study were: (i) to investigate the relationship between strategic supplier partnerships and financial performance in Kazire health products company limited, (ii) to examine the relationship between information sharing and financial performance in Kazire health products company limited and (iii) to find out the relationship between customer relationship management and financial performance in kazire health products company limited. The study used the correlation design where both quantitative and qualitative approaches were applied. A sample of 92 respondents was considered. Simple random, snowball sampling and purposive sampling were used in selecting the respondents. Data was collected by use of a questionnaire, interview guide and document review checklist. The study used both quantitative and qualitative techniques of data analysis and a computer package called statistical package for social scientists (SPSS) was used for data entry and analysis. A response rate of 90.2% was achieved. The findings suggest that: strategic supplier partnership explains 5.4% (.054*100) on financial performance of Kazire Health products company Limited (KHPCL); information sharing explains 14.1% (.141*100) on the financial performance of Kazire Health products company Limited (KHPCL) and customer relationship management explains 7.3% (.073*100) on performance of Kazire Health products company Limited (KHPCL) as per regression analysis.

The study recommended that; management should try to build long term relationships between the company and its suppliers through prompt payments, open channels of communication to allow information flow freely, and the supervisors should consider building customer loyalty starting with employees as this may foster financial performance.