Supplier relationship management and procurement performance at the National Agricultural Research Organization -NARO

Abstract

The study examined the relationship between Supplier Relationship Management-SRM and procurement performance in the public sector of Uganda. Specifically the study examines the relationship between strategic alliance, communication, supplier performance management aspects of SRM and procurement Performance in NARO. The study used a cross-sectional design adopting both qualitative and quantitative approaches on a sample 79 staff of NARO from the secretariat, NARIs and ZARRIs. Data was collected using a questionnaire and interview guide. The study found that a low inclination to engage in strategic alliances considerations of joint planning and supplier development. There was a moderate significant relationship between strategic alliance and procurement performance in NARO (r = 0.309*, p = 0.010). The study found wide reliance on informal communication and with less formal communication. There was a high significant relationship between communication and procurement performance in NARO (r = 0.678*, p = 0.000). The study found low use of supplier performance management practices of setting performance targets and reviewing of supplier performance. There was a high significant relationship between supplier performance management and procurement performance in NARO (r = 0.685** and significance p = 0.000) and it was the highest significant predictor of the variance in procurement performance at NARO. The study concluded that there is a significant relationship between strategic alliances, communication, supplier performance management and procurement performance in NARO. To enhance procurement performance in public entities, the study recommends that management should engage in joint planning through joint identification and development of specifications, development of supplier’s technical, quality and cost management capabilities. Management should explore the use of meetings, workshops, seminars, and information and communications technology for formal communication in managing the relationship with suppliers. Use of quality circles and teamwork should equally be sought. The study recommends that management should set supplier performance indicators, quantity expectations and quarterly performance expectations for strategic supplies. Use of meeting and supplier appraisal should be emphasized in the management of relationships with suppliers.