Client supplier relationship management in procurement of goods

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Empirically, causation has been established between procurement, particularly public procurement, and the development of a nation. The probable explanation perhaps lies in the fact that it forms a significant portion of the Gross Domestic Product (GDP). Procurement of goods, as part of procurement, is regularly done unlike the other procurements. Albeit its significance, procurement can be very complicated despite the seemingly linear definition of acquisition of goods. By extension the management of this relationship determines the significance of procurement as it can impact positively or negatively on the procurement process. The aim of this study was tailored to explore this relationship that exists between the major actors of procurement of goods – Client and Suppliers. The study adopted a more hybrid form of research design using a case-study and survey questionnaire to elicit responses from the participants. Out of the twenty questionnaires administered, twenty were completed and returned representing a 100% response rate. The study revealed that the benefits of Client-Supplier Relationship Management (CSRM) are all significant. Key benefits were: Better access to technological innovations, Reduction of inventory and improved security of supply. The study also identified top management support, control and compliance, and enabling technologies as the most Critical Success Factors (CSF) to good CSRM. The challenges identified were not significant. However, it suffices to mention here that the challenges should not be overlooked particularly, limited engagement and sponsorship from top-management, lack of specific Supplier Relationship Management (SRM) competencies and skills, and strategic objectives that are not compatible. The main conclusion is CSRM has varying potential benefits which can be generally very high and high implying CSRM has the potential to save the client several millions of Ghana Cedis. Top-management support is critical to the management of client and supplier relationship. It is recommended that the CSRM be given top-management support and be considered as a cooperate strategy in the organisation.
A dissertation submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfillment of the requirements for the degree of Master of Science in Procurement Management.
Clients, Procurement of Goods, Relationship, Suppliers

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