The effect of supplier development on procurement performance of manufacturing firms in Uganda :

Abstract

The study was carried out with the purpose of examining the effect of supplier development on procurement performance of kakira manufacturing firm. The objectives for the study was; To determine the effect of supplier training on procurement performance, to determine the effect of financial support on procurement performance and to determine the effect of supplier involvement on procurement performance. The researcher applied both qualitative and quantitative techniques in designing the research. A total of 36respondents participated in the study and were selected using random sampling method. The data was collected using questionnaires and interviews and presented using tables, graphs and pie charts for easy analysis. The research findings revealed that indeed supplier development is crucial in improving the supplier performance and the organisation performance. The study established a significant positive relationship between two elements of supplier development namely financial support and supplier involvement and organization performance; therefore, firms in manufacturing industry ought to engage more in activities that help improve the operations of their suppliers. The study also established a significant negative relationship between supplier training activities and procurement performance hence, thus organization performance also in conclusion this study suggests financial support is very important and that manufacturing firms should be able to provide financial support to their suppliers. However, there are challenges of finances as deduced from the study but all the firms need to do is work hand in hand with the financial institutes It was however study recommends that the kakira manufacturing firm should work hand in hand with the financial institutes to curb the challenge of finances because providing funds to the supplier is not easy but when money is available it becomes much easier. Also the study recommends that the organization should fund well the training programs that they administer to their suppliers this will indeed to better performance.