Effect of Supplier Relationship Management on Humanitarian Supply Chain Performance at the World Food Programme in Somalia

Abdallah, Amina Nassor (2015) Effect of Supplier Relationship Management on Humanitarian Supply Chain Performance at the World Food Programme in Somalia. Masters thesis, University Of Nairobi.

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Abstract

Supplier Relationship Management is understood as the sourcing policy-based design of strategic and operational procurement processes as well as the configuration of the supplier management. Coordination in humanitarian organizations is often difficult because of the many groups involved (military, government, Non-governmental Organizations), and often inadequate infrastructure. Moreover, in humanitarian supply chain, the “customer” is usually the donor or supplier of goods, rather than the recipient of the aid the programme is designed to help. These donors must be sold by showing the donation is being used properly. Although aid effectiveness as an operational goal of humanitarian organizations is often criticized since it overlooks other goals such as equity, this does not mean that efficiency should be discarded. This is because beneficiaries require humanitarian agencies to demonstrate operational efficiency especially when disasters strike since this can save lives. This means that an organization that does not have a supplier relationship management strategy may fail to attain operational efficiency hence failing to achieve their main objective (saving lives) due to delayed delivery, high costs and poor quality. This therefore calls for supply relationship management on the part of humanitarian agencies. No local study has focused on supply chain relationship among humanitarian organizations; despite the challenges they get in getting supplies on time due to financing and other constraints, a gap that the present study aimed to fill by studying supplier relationship management in humanitarian supply chain at the World Food Programme in Somalia. The study aimed to answer the following question; what is the effect of supplier relationship management on the service performance of World Food Programme in Somalia? This study adopted a survey design. The population of this study was WFP employees in these three categories: all senior managers in both the regional and the liaison office; all procurement staff in both the regional and the liaison office. The study also targeted WFP food suppliers based in Nairobi. The study targeted 7 food suppliers in Nairobi because WFP places a priority on procuring food supplies from the local community. This gave us a sample size of 87. The study collected primary data. Data from WFP employees was collected using self-completion questionnaires. For the suppliers, the CEO/Managing Director/Owner manager or the available senior most employee was be interviewed. The data was analyzed using the IBM Statistical Program for Social Sciences ((SPSS) version 21. Descriptive statistics was used to summarize the data. the organization always shares information with suppliers. The results show that WFP has multiple tier suppliers. It was also revealed that WFP continuously trains employees from then procurement department and that WFP has mechanisms to ensure suppliers conform to quality standards and is keen on suppliers of critical commodities like food. It was also found that IT is used in the execution and management of purchase orders and that the organization’s humanitarian supply chain performance, results indicated that WFP Somalia delivers defect free food supplies to beneficiaries. The study makes the following recommendations; WFP’s management should begin rewarding suppliers who share information and that the organization should not only have multiple supply tiers but should also well understand each tiers risk profile to enable the organization mitigate any unforeseen events that may affect delivery of supplies especially during emergencies.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HJ Public Finance
Divisions: Africana
Depositing User: Mr Nahum Osman
Date Deposited: 13 Jun 2016 11:57
Last Modified: 13 Jun 2016 11:57
URI: http://thesisbank.jhia.ac.ke/id/eprint/423

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