ABSTRACT

The research established the effect of supplier selection on the performance of organizations, a case study of Mukwano Group of Companies. The study was guided by the following specific objectives, to determine the effect of pre-qualification on procurement performance of public institutions, to establish the effect of tendering on procurement performance of public institutions and to investigate the effect of multiple sourcing on procurement performance of public institutions. The literature was organized based on the objectives of the study. Literature was reviewed from different sources such as newspaper articles, journals, textbooks, and past research publications. The chapter was sectioned according the objectives of the study The study applied cross-sectional research design in nature and this helped in collecting data from a wide section of the study respondents. The study applied both quantitative and qualitative research methodologies. The study targeted 130 people who are staff of Mukwano Group of Companies. The researcher therefore was able select a sample of 92 people from the population of 120. The findings revealed that pre-qualification plays a big part in procurement performance of public institutions especially Mukwano Group of Companies. Pre-qualification was found to be having a significant positive (0.436) relationship with procurement performance at 5% level of significance (2-talied test). Thus the higher the chances of pre qualification, the higher the level of procurement performance. The findings also revealed that tendering has a great influence on the procurement performance of public institutions especially Mukwano Group of Companies. Tendering was found to be having highly significant positive (0.599) relationship with Procurement performance at I% level of significance (2-tallied test non-directional). Thus, tendering leads to higher the level of procurement performance. The findings further revealed that multiple sourcing has a direct influence on procurement performance of public institutions. It was recommended that the management on public institutions should consider adopting tendering and prequalification supplier selection methods during procurement process.