Supplier relationship management and organisational performance in the petroleum industry in Uganda: A case study of Hashi Energy Uganda Limited

Abstract

This study sought to examine the relationship between Supplier Relationship Management and the Organizational performance in Petroleum Industry in Uganda, a case study of Hashi Energy Uganda Limited. The researcher adopted a descriptive research design. The analysis involved primary data obtained through questionnaires, interviews and secondary data, which was obtained from relevant journals and books. It was evident from the findings that Supplier Relationship Management at Hashi Energy Uganda Limited was effectively conducted as indicated by 99% of the responses. The findings from the research confirmed the need to establish a strong evaluation system, which will supervise, monitor and appraise suppliers’ performance. This study contributes to our knowledge on procurement process by presenting the key role of supplier appraisal on effective procurement process and organization performance through improving on performance of suppliers. It was also found that the Organization usually conducts Supplier Relationship Management to assess the performance of suppliers of goods and services to ensure effective performance of the organization. They indicated that, supplier appraisal has contributed much on performance of Hashi Energy in terms of quality and delivery. The key dimensions found to yield best results are; supplier training, standardization of supplier product, communication with suppliers and constant auditing of the suppliers. These techniques have helped Hashi Energy in reducing product cost, improving product quality, hastening time taken to the market and also improving on the operations flexibility of the manufacturing firm. The study recommended that Hashi Energy needs to focus on creating long-term relationship with suppliers mainly those of core items such as stationary and technical supplies for example computer services. There is a need to improve on communication system to facilitate information flow and reduce on costs of communication. This may be through adopting electronic means such as e-Procurement to facilitate procurement transactions.