The Impact of Fuel Management on Supplier Performance in Ministry of Energy and Mineral Development.

Abstract

The study was carried out at Ministry of Energy and Mineral Development among employees. The purpose of the study was to establish the impact of fuel management on supplier performance at ministry of energy and mineral development. The research methodology for the study was quantitative research design and to a little extent qualitative research design. The sample size was 45 respondents and simple random sampling technique was applied in selecting the respondents who were included in the sample. The researcher used questionnaires to collect data and data was analysed using SPSS version 25 at univariate and multivariate levels. The study found out the mostly used controls of fuel management as timely follow up for fuel consumption by managers allows the organization to allocate sufficient budget for fuel cost which enhances supplier performance, the ministry has the fuel store manager in place who ensures proper distribution of fuel resource. The study also found out that the mostly used strategies of fuel management at Ministry of Energy and Mineral Development are regular oil changes, fluid checks, wheel alignments, cooling system fill and transmission fluid changes and also the ministry uses fleet fuel card to reduce wastage of fuel through making a follow up of fuel used. The study also found out that fuel management lowers costs through good driving habits, decreases waste caused by fuel theft, allows timely follow up for fuel consumption and finally the organization allocate sufficient budget for fuel costs that enhances supplier performance. The study also concluded that regular oil changes, fluid checks, wheel alignments, cooling system fill and transmission fluid changes are strategies used to manage fuel at the Ministry of Energy and Mineral Development. The study finally concluded that with fuel management, the ministry has experienced cost reduction through good driving habits, allocated sufficient budget for fuel costs and improves fuel efficiency which has enhanced supplier performance. The study recommended that the organization should have to give a critical emphasis on assigning adequate budget for fuel cost and should manage fuel consumption and maintenance scheduling properly through developing better financial system and providing adequate training to employees under fleet department.