Procurement Management and the Performance of Commercial Banks in Uganda Case Study: Finance Trust Bank

Abstract

The study was carried out to determine the effect of procurement management and the performance of commercial banks in Uganda focusing on Finance Trust Bank as a case study. The objectives included evaluating the effect of procurement planning on the performance of commercial banks, to find the effect of procurement controlling on commercial banks’ performance and lastly to determine how procurement monitoring affects the performance of commercial banks in Uganda. Banks have gone through a series of diversification yet still the costs they incur are extremely high which causes a great impact on the satisfaction and wealth of their stakeholders. With this, they have resorted to reducing the costs being incurred by concentrating on their procurement management which necessitated the research on how bank’s performance can be improved through procurement management. The research adapted a case study design which used both quantitative and qualitative approaches with a sample size of 40 respondents. Using the qualitative approach, the research focused on establishing the relevance of Procurement management to commercial bank’s performance with the help of secondary data sources like books and journal while the quantitative method was used to analyze numerical primary data collected from the respondents using questionnaires. Literature was reviewed following the respective objectives of the study; procurement planning, procurement controlling and procurement monitoring. The findings revealed that inadequate procurement management greatly affects a number of commercial banks which means banks tend to over look this area yet it consumes great deal of their incomes and with this they do not get enough value for their performance; profits, and the available capital which would have been ploughed back into the business are eroded away by poor procurement management. With this the researcher recommended that banks should put more consideration on sensitization of bank workers in form of procurement management education, enough feasibility should be carried out on the suppliers and regularly monitor. Banks should also train their staff about performance assessment and collection methods as well as how to handle procurement processes.

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