The effects of procurement practices on suppliers’satisfaction in Rwandan public institutions: (a case of mod, 2013- 2015)

Abstract

The purpose of this study was to determine the effects of procurement practices on suppliers’ satisfaction in Rwandan public institutions case of MOD. To achieve the objectives the sample size of 26 respondents on one hand was selected from the target population of 41 staff and the method used for data collection was purposive technique. Also the sample size of 78 respondents representing the population of suppliers on another hand was purposively selected from a target population of 360 suppliers to provide the information. Twenty six staff were purposively selected from 41 staff basing on their responsibilities while three members (Managing Directors, accountants and Sale officers) from each supplying company were also purposively selected basing on holding valuable information and regular follow up of the management of procurement practices on day to day basis. The study used systematic random sampling techniques to select 26 companies from a total of 120 supplying companies. The results showed that except payment and receiving procurement practices for which respondents accepted their existence at a low level emphasized by its mean 3.692 which tells uncertainty about its achievement. Other procurement practices exist at a higher level which is justified by the means above 3.4. The study also showed that suppliers are highly satisfied based on supplier satisfaction dimensions which are proved by the higher percentage of satisfaction stressed by the range of means between 4.2 and 5.0 which mean the stronger evidence of the existence of the fact. For early supplier involvement suppliers expressed satisfaction at lower level because MOD does not involve suppliers at an early stage in the product or service development process. It is indicated that the main purpose of early supplier involvement is to enable a prequalified supplier with proven supply and technical abilities to contribute to the technical expertise which the buyer may lack. It is recommended that MOD may improve the channel of information sharing and payment model. Public institutions may establish mechanisms by which the bidders may raise concerns about the way procurement is progressing which would significantly increase supplier confidence. Finally payment of supplier invoices may be done within agreed terms of trade which is a part of ethical trading to pay supplier invoice on time.