The Effects of Supplier Relationship Management on Procurement Performance of the Ethiopian Pharmaceuticals Supply Service
No Thumbnail Available
Date
2022-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The study's overall goal was to assess the effect of supplier relationship management on procurement performance in EPSS. The study was carried out using an explanatory research design. The population studied was EPSS in bound logistic (Quantification and market-shaping directorate, tender management directorate, and contract management directorate), and the population was studied using a census method rather than sampling. A questionnaire was used to obtain primary data and 100 people completed and returned the questionnaires out of a total of 100. Data was analyzed in both descriptive and inferential ways.
The researcher computed and tested Pearson Correlation Coefficient. Between supplier performance evaluation and trust, respectively, and procurement performance, there is a positive and extremely strong relation to the extent of (r=.814 & r=.814). Supplier training and information sharing have a positive and strong relation with procurement performance to the extent (r=.766 & r=.700). There is a modest and positive relation between negotiation and procurement performance to the extent of r= 0.36, and all variables were statistically significant at the 1% level (p=0.000, 0.01). After performing a multiple linear regression analysis, it was discovered that the model as a whole was significant and that 88.4 percent of the variance in procurement performance could be explained by the independent variables, as indicated by the coefficient of determination represented by an adjusted R-squared.
Further, the researcher concludes that supplier training, supplier performance evaluation, information sharing and trust were the most factors affecting procurement performance with statistical significance level of 0.000, (p < 0.01).
The researcher recommends EPSS and other organizations to show a greater commitment to SRM by putting in place mechanisms to track, evaluate, and appraise performance at a strategic level in order to improve procurement performance. The researcher also suggests that additional research be done on how to apply and exercise supplier relationship management in EPSS as well as the difficulties that it presents.
Keywords: Procurement Performance, Supplier Relationship Management, Supplier Training, Supplier Performance Evaluation, Information Sharing, Negotitin, Trust