Supplier Relationship and Organisational Performance; A Case of Mukwano Group of Companies, Kampala Central Division, Uganda

ABSTRACT This study was based on “Supplier Relationship and Organisational Performance; A Case of Mukwano Group of Companies, Kampala Central Division, Uganda” The purpose of this study was to identify the influence of Supplier Relationship and Organisational Performance; A Case study of Mukwano Group of Companies, Kampala Central Division, Uganda. The study was guided by three objectives including; (i) To identify the influence of poor Supplier Relationship to organisational performance; (ii) To establish the strategies for improving Organisational Performance of Mukwano Group of Companies, Kampala Central Division, Uganda (iii) Identify whether there is a relationship among supplier relationship and organisational performance; a case study of Mukwano group of companies, Kampala central division, Uganda. This study was based on Organizational theory of Max Webber (1978) consists of approaches to organizational analysis. This study used a descriptive survey research design where people’s views and opinions were sought and described accordingly to establish how organizational factors affect performance of employees. The study population was the total of 50 employees. The sample size of 30 employees was selected and involved in the study at Mukwano Company. They were being picked from various departments like human resources office, accounting, records office, public relations, and community and procurement office among others. Simple random sampling was used in the study to select respondents from the various departments. Purposive design was also done in the selection of the sample to managerIal level aimed at collecting data. Data collection methods included; Questionnaires and Interview. Data was categorized and summarized into frequency and percentage tables facilitate by respondents and interfering meaningful conclusion were edited and compiled together. It was recommended that Mukwano Create channels for consistent communication; Dish out blame evenly. Pointing fingers during a dispute is instinctual, but it’s important to distribute blame on all sides. Know they aren’t the only client. Procurement officers know what it’s like to deal with multiple customers and suppliers on a daily basis, so this same mentality should be applied to the supplier relationship. Suppliers aren’t just working with your company, so give them the benefit of the doubt if your needs aren’t instantaneously met at all times. Procurement departments should assert priority to suppliers without over communicating demands. This type of mutual understanding will create natural rapport and motivate suppliers to spend more time working with your company. Create transparency through technology. Trust is critical for a constructive buyer-supplier relationship, and the best way to build trust is to establish transparency. Businesses estimate they spend on average per week around 55 hours doing manual, paper-based processes and checks; 39 hours chasing invoice exceptions, discrepancies and errors and 23 hours responding to supplier inquiries, avoid managing the supplier relationships only when unpleasant situations with suppliers occur, and try to figure out how to improve the performance of unreliable suppliers. This approach consumes quite a lot time and resources, which could have been better spent on more important business processes.