The impact of strategic procurement planning on organizational performance, a case study of Kampala International University

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Kampala International University, College of Economics & management.
Procurement is increasingly becoming one of the critical and strategic functions of every organization with the potential to contribute positively to the success of operations leading to reliable service delivery and competitiveness. Strategic procurement indeed sets in motion the entire acquisition! procurement process of all the purchases by the educational institutions. Despite this importance very limited scientific research has been done to examine the extent to which efforts in strategic procurement planning affect procurement performance among the education institutions in Uganda. This study looked at the role of strategic procurement planning on procurement performance of MU. Specifically, the study reviewed six strategic procurement planning practices and how they contribute to success of procurement function in KIU. The practices discussed mainly comprised; clear goal identification and setting measurable objectives, development of strategies and tactics, supplier relationship management plan, measurement plan, category management, spend management plans and technology utilization and how they affected the procurement performance of KIU. It was hypothesized in the study that strategic procurement practices, positively affect the procurement performance of KIU. Empirical data was collected from 39 respondents of KIU, Kansanga, out of targeted population of 43. The empirical data was analyzed both quantitatively and qualitatively to examine the relationships between strategic procurement practices and procurement performance. The key findings of the study indicated that only nineteen percent (19%) of the variation in procurement performance were explainable by the six procurement practices. Despite this low significance in the relationship between the variables, we recommended that the existing procurement practices be revised and strengthened to further improve the organization’s procurement performance. Further research was recommended to cover other strategic procurement attributes hence improving the significance of the whole model.
A research report submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of Bachelor’s Degree of Supplies and Procurement of Kampala International University
Strategic Procurement Planning, Organizational Performance, Kampala International University