Selected Factors of Supplier Prequalification on Organizational Performance- a Case Study of Danish Refugee Council

Abstract

Suppliers play a key role is enhancing performance of the organization and maintaining a competitive advantage .However, many firm have succeeded by ensuring they select suppliers that add value to the organization while others have failed by having suppliers that don’t add up to the organizations growth and development .This study was set out to examine selected factors of supplier prequalification on organization performance a case study of Danish Refugee Council . The specific objectives of the study were ; To examine the effect of supplier capacity on supplier prequalification and organizational performance .To examine the effect of supplier pricing on supplier prequalification and organizational performance .To examine the effect of professional ethics on supplier prequalification and organizational performance. To examine the effect of supplier financial status on supplier prequalification and organizational performance .The study was anchored on data envelopment analysis (DEA), the Analytic Hierarchy Processes (AHP) and Total Cost of Ownership Models as theoretical backing with discussed relevance to the study. The study employed descriptive research design targeting 40 employees working for the Danish Refugee Council in Kenya. The study adopted the questionnaire as the research instrument to collect primary data from the field. Data collected was coded and analyzed quantitatively. This study observed that the selected factors of supplier prequalification mainly supplier capacity, supplier pricing, professional ethics and financial status had an influence on the prequalification processes. Out of these findings, the study recommended stiff concern be taken when selecting supplier in particular their past history, financial base and supply capacity from past assignments to determine their abilities to deliver upon prequalified for supply. The study suggested further studies on other factors affecting supplier selection since this study only focused on a few selected factors and their impact on organization performance.