Relationship Management and Supplier performance at National Medical Stores, Uganda

Abstract

This study was an assessment of how dimensions of relationship management (trust, communication and transparency) affect supplier performance at National Medical Stores. Specifically the study set out to: determine the relationship between trust and supplier performance at NMS; examine the contribution of communication on supplier performance at NMS and finally; establish the contribution of transparency on supplier performance at NMS. Both qualitative and quantitative approaches we used alongside the case study design. Out of a study population of 85, a sample of 74 respondents was selected and out of these, 71 participated by way of responding to the questionnaires and interviews, indicating a response rate of 96%. Both descriptive and analytical research methods were used to collect data from NMS pharmaceutical suppliers and NMS staff directly involved in contract management. Data collection was done with the aid of questionnaires and interview guide. Inferential analysis was generated using Pearson’s correlation index and Regression analysis to determine the extent of the relationships and cause and effect between variables. The results indicated that there was significant positive relationship (r= .649, p<0.005) between trust and supplier performance at NMS. Similarly, communication positively contributed (r=.628, p<0.005) to supplier performance at NMS. The study also established that there was a significant positive relationship (r=.613, p<0.005) between transparency and supplier performance at NMS. From these findings, the conclusion drawn indicate that when NMS builds strong relationships with its suppliers, supplier performance will greatly improve and in turn NMS will be in position sustain competitiveness to deliver its mandate. Basing on the research findings, different recommendations were made and they included; developing an NMS supplier communication strategy; NMS management introducing a system of assessing buyer supplier relationship followed by sharing results of the findings and proposed corrective actions with suppliers. The study recommended regular and periodic NMS supplier meetings to communicate supplier performance and also get feedback from suppliers.