Factors affecting the performance of the procurement department: a case study of the Uganda National Agricultural Research Organization (NARO)

Abstract

The objective of this study was to establish the factors affecting the performance of the Procurement department, a case study of the Uganda National Agricultural Research Organization. Using primary data collected from the Procurement department at NARO, a sample of 80 employees in the procurement department was studied. Results from this study indicate that 60% of respondents strongly agreed that Procurement planning affected performance of the procurement department, 52% of the respondents strongly agreed that Contract management supports performance of the Procurement department at NARO, 73% of the respondents strongly agreed that the procurement department has ensured that planned resources are procured on time whereas 65% of the respondents strongly agreed that procurement officers are well trained. Based on the findings, the following factors were found to have a significant positive relationship with performance of the Procurement department which included; Procurement planning, Contract management, Resource allocation and Professionalism of the workforce. The study therefore recommends that preparation of annual procurement plans should be participatory, frequently reviewed so as to improve on NARO’s performance in procurement section. The study further recommends that decisions on outsourcing, establishing long-term contracts and contacts with certified and or preferred suppliers, adopting a supplier strategy based on multi-versus single sourcing, making investment decisions and related to policies concerning transfer pricing and intercompany suppliers should be made. In addition, the study recommends that procurement officers be employed with professional qualification and they be trained continuously on procurement issues so as to develop their careers.