The Effect of Supplier Evaluation on Procurement Performance: The Case of Public Procurement and Property Disposal Service of FDRE
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Date
2017-06
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Addis Ababa University
Abstract
Selection and maintaining competent suppliers is very essential in procurement. However this study was attempted to evaluate the effect of supplier evaluation on procurement performance in PPPDS. To achieve this objective the study was guided by three specific objectives; to evaluate the effect of supplier quality commitment on procurement performance, to examine the effect of supplier financial ability on procurement performance and to evaluate the effect of supplier competence on procurement performance. The study used descriptive research design and Simple random and Purposive sampling techniques were used to pick a sample of 112 respondents from a target population of 182 staff from federal budgetary organizations and PPPDS who were provided with the questionnaires. In collecting the data, open-ended and closed-ended questions were used. The quantitative data generated was analyzed through descriptive, correlation and multiple regression statistical technique using SPSS version 23. The researcher distributed 112 questionnaires and 86 were filled and returned. It shows a response rate of 76.8%. The results of this study indicated that all of the respondents agreed with a large extent that supplier quality commitment, financial ability and supplier competence influence on procurement performance in PPPDS. The independent variables (supplier quality commitment, financial stability and supplier competence) have strong positively correlation with dependent variable (procurement performance) and significantly influence the dependent variable. Which are consistent with similar researches made. The study concluded that supplier quality commitment, financial ability and supplier competence have significant impact on procurement performance. From the findings the following recommendations of the research were made: The organization should take into consideration what evaluation criteria are related to improve procurement performance and capitalize on them like supplier financial capacity, quality commitment and competence of the supplier and evaluating by experts who are knowledgeable and have expertise to conduct the exercise professionally and also train their supplier evaluation committees or procurement experts on how best to evaluate the suppliers
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Supplier Quality Commitment, Supplier Financial Ability, Supplier Competence