Impact of Centralized Purchasing on Organisational Performance. A Case of Mukwano Group of Companies.
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Date
2012-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management Sciences.
Abstract
The study set out to assess the impact of centralized purchasing on organization performance
at Mukwano Group of Companies .it was guided by a number of objectives which were to
assess how centralized purchasing reduces costs, to establish the rationale for centralized
purchasing, and organizational performance.
The study was carried out using a self administered questionnaire and an interview guide and
the results were Analyzed and presented in table ,figures and on content. The study
concluded by the researcher observing that centralized purchasing has a positive impact on
organizational performance as per the evidence showed by the findings of the study. This is
mainly due to its advantages such as easy monitoring of purchasing performance, uniform
purchasing procedures can be followed, budgetary control may be applied. Uniform policies
can be adapted, and Specialist staff can be employed for each category of purchase; which
out weigh its disadvantages. This together with the derived cost reduction and quality control
benefits which makes centralized procurement a receipt for success.
The ability to reduce costs,and ensuring quality of the goods and services purchase by
Mukwano Group of Companies and other organizations ,Therefore:
The researcher recommended that centralized purchasing structure seems to be working well
for Mukwano Group of Companies, therefore it should be strengthened and since it requires
purchasing professionals, the entity should concentrate on recruiting highly qualified
procurement managers, user departments should be informed thoroughly by the procurement
department about what goes on at all stages of the procurement cycle. The employees should
also be sensitized about the benefits of using the centralized purchasing structure.
Description
A research report submitted to School of Business and
Management as a Partial Requirement for the Award
of the Degree of Bachelors of Supplies and
Procurement Management of Kampala
International University.
Keywords
Organisational Performance, Centralized Purchasing, Impact, Mukwano Group of Companies