Supplier Relationship Management and Organizational Performance: A Focus on Public Procurement

Abstract

To attain operational excellence, organizations must enhance their supplier-buyer relations on a global scale. Organizations must strengthen their relationships with suppliers and buyers to obtain competitively priced goods and services of superior quality. A positive relationship between the two parties can also result in enhanced trust, quicker response times, and improved communication. This study examined the effects of the Supplier Relationship Management (SRM) framework on the operational effectiveness of agencies responsible for the essential procurement of goods and services. The principal aim of the research was to ascertain the SRM strategies implemented in public procurement and evaluate how they influence organizational performance. The research study implemented a descriptive design, which entailed gathering quantitative data. The study’s target population comprised 50 personnel employed in the public procurement divisions. A total of 43 respondents were recorded from a diverse range of agencies and divisions dealing with public procurement. Furthermore, the research employed a structured questionnaire comprising closed-ended inquiries to gather quantitative data for the subsequent analysis. The findings of the descriptive analysis show no indication of explicit SRM strategies being implemented in the organizations included in this study, according to the findings. The findings also uncovered many challenges that negatively impact the performance of organizations dealing with public procurement of essential goods, including a lack of commitment and trust among public procurement divisions and supply chain partners. In order to achieve organizational performance, the study suggests that pharmaceutical organizations place a greater emphasis on commitment to SRM through the implementation of systems that monitor, appraise, and evaluate performance at a strategic level.