Managing Supplier Relationship in a Typical Public Procurement Entity in Ghana

Read this article. The idea is to determine ways of managing supplier relations in order to improve procurement performance. After reading this article, what is your own definition of supplier relations?

Discussions of Findings and Managerial Implications

It was observed from the findings that the selected entity strongly agrees with strategies of supplier relationship management as indicated by Leemputte in order to ensure value for money and to improve their performance. These strategies include sharing critical information; planning everyday expectations; expecting and rewarding honesty and making the relationship meaningful.

In addition, KNUST and CCTU followed the Public Procurement Act 663 in all their purchases but do so whiles having a good relationship with key suppliers to improve performance of the procurement unit of the institutions.

It was also observed that the type of relationship that exists between the institution and its suppliers is a transactional relationship where goods from suppliers are exchanged for money and each time such products and/or goods are needed, the same procedure is used again. As such, this type of relationship is the most common and basic type of buyer-supplier relationship. Again, KNUST and CCTU as a procurement entities practice the Adversarial model in managing relationship with its supplier(s) in order to engender value for money in public sector procurement as per the objectives of the Public Procurement Act 663 and again improve procurement performance.

The study also revealed that strategic items require long-term relationship with supplier(s) since it has great implementation for relationship according to Baily et al. and this is where the entity is most likely to find partnering approaches in which both sides will recognize and strive for the potential benefits.

This implies that supplier relationship management within public institutions is not bad but there is more room for improvement as existing processes are coupled with some challenges. It is therefore necessary for management and key stakeholders to take measures to effectively manage their supplier relationships to gain mutual benefits which would eventually improve their performance.