Supplier Relationship management and Organisational performance: A case of Mukwano Industries Limited Lira

Abstract

Background: The main purpose of this research was to investigate the effect of supplier relationship management (SRM) on the performance of Mukwano Industries Ltd. Supplier relationship management has been presented as the new way for organizations to capture more value and improve their performance. This is because SRM is an important perspective for manufacturing firms to ensure the supply of reliable and frequent deliveries in today’s dynamic and competitive environment. The study looked at three parameters; trust, commitment and communication as elements of supplier relationships and the effect that these have on organizational performance. Methods: The research involved a cross-sectional design while the study population was 162 which included senior management and the contract farmers. The researchers selected a sample of 115 respondents using simple random sampling techniques. Data was analyzed using multiple regression, with the aid of SPSS version 20. Results: The findings showed that trust and commitment had significant effect on organizational performance of Mukwano industries. The study also revealed that supplier represent one of the fundamental pillars for improving organization performance. Conclusions: The study concluded that supplier relationship accounts for 17.2% of the variations in the level of organizational performance of Mukwano Industries Ltd. Recommendations: Therefore, it was recommended that manufacturing companies should consider the importance of SRM in order to attain high performance outcomes. Future researchers should consider investigating the effect of supplier relationship management on organizational performance of manufacturing industries in Uganda. Keywords: Supplier Relationship management, Organisational performance, Mukwano Industries Limited Lira