THE IMPACT OF PROCUREMENT PLANNING ON SUPPLIER SELECTION. A CASE STUDY OF MINISTRY OF ENERGY AND MINERAL DEVELOPMENT.
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Date
2024-09-04
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UGANDA CHRISTIAN UNIVERSITY
Abstract
ABSTRACT
The study assesses the impacts of procurement planning on supplier selection at the Ministry of Energy and Mineral Development. The focus is to establish how good planning of advance technology procurement would impact choosing dependable suppliers, carrying out better management of inventories, as well as enhancing the reliability of forecasts for future demands. In this respect, the research shows effective ways of improving supply chain efficiency in MEMD.
Demand forecasting allows buyers to project the volume of goods and services needed in the future, thus helping to balance the procurement process, therefore facilitating the right choice of suppliers.
The Inventory Management assists in having a healthy stock by keeping the levels of inventory just enough to preclude overstocking or stockouts, an important factor to identify suppliers who can actually fulfill the stock levels.
Selection of suppliers involves assessing them based on criteria such as cost, quality, and dependability to select suppliers that would better align with organizational goals.
Both qualitative and quantitative research designs were used for data collection and analysis. Quantitative data collection was by survey, whereas structured questionnaires were completed by selected personnel based at MEMD, including the procurement officers and the supply chain managers. In this regard, interviews revealed certain challenges and best practices of procurement planning and supplier selection.
The findings of the study showed that sound procurement policies influence the adoption of internal supplier assessment and development programs by enhancing pre-qualification mechanisms. Inventory control should be correctly done to minimize overstock levels and lead times. Demand forecasting was important in ensuring that the procurement plans were in line with what was required, hence minimizing situations of overstock levels or stockouts.
Based on this research, integrated procurement planning, with efficient inventory control and correct demand forecasting, is best for selecting suppliers and chains in general at the MEMD. There are suggestions regarding more sophisticated methods of forecasting, feedback on supplier performance, and what could be even more effective at this level for inventory management processes.