Impact of Centralized Purchasing on Organisational Performance. A Case of Mukwano Group of Companies.

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Kampala International University, College of Economics and Management Sciences.
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.
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.
Organisational Performance, Centralized Purchasing, Impact, Mukwano Group of Companies