Procurement Management and Service Delivery in Organisations: a Case Studay of Mildmay Uganda

Abstract

The study was an assessment of the effect of procurement management and service delivery in organisations, a case study of Mildmay Uganda with the intention of identifying strategies for improvement. The specific objectives were to establish how procurement planning affects service delivery, assessing the relationship between supplier selection and service delivery and investigating the effect of contract administration on service delivery in organisations.

The study was carried out using a descriptive cross sectional design adopting both qualitative and quantitative approaches in the data collection and analysis. The study population was 244 and a sample of 174 was realised using the Krejcie and Morgan table. 6 selected members were interviewed as the study key informants; they were not part of the study sample and were therefore not issued the study questionnaire. Of the issued 174 questionnaires, only 150 responses were received giving a response rate of 86%. The sample subjects were selected by simple random and purposive sampling. Instruments for data collection were questionnaire and interview guide. Both univariate statistical analysis consisting of frequencies and percentages and bivariate statistical analyses consisting of Pearson correlation coefficient of determination and partial correlation were conducted to analyse the quantitative data. Analysis was done using SPSS Version 17 software. Pearson correlation was used to determine the direction of the relationship between the independent (IV) and dependent (DV) variables.

The findings revealed a moderate positive correlation between procurement planning and service delivery. Indicating that there was budgeting, needs assessment and procurement scheduling in relation to service delivery. For supplier selection, the study result was a significant positive correlation between supplier selection and service delivery; implying that specifications, methods of source selection, tendering process, and bid evaluation criteria were considered in engaging suppliers. For contract administration, the result was a moderate positive correlation between contract administration and service delivery indicating that contract monitoring and evaluation, reporting, payments and contract termination in relation to service delivery were observed. The multiple linear regressions analysis revealed that procurement planning had a weaker contribution to service delivery compared to supplier selection and contract administration.

The following recommendations were drawn: Mildmay Uganda administration ought to put more effort in procurement planning to ensure detailed budgeting, needs assessment and timely procurement schedules. Aadministration also needs to put more emphasis and sensitisation of staff on issues of extortion, specifications, methods of source selection, tendering process and bid evaluation criteria in the selection of suppliers. There is also need to put in place and implement clear guidelines for contract monitoring, evaluation, reporting, timely payment of service providers and termination of contracts and to give more awareness to staff on contract administration issues.

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