INVENTORY MANAGEMENT PRACTICES AND SUPPLY CHAIN PERFORMANCE OF DAIRY PROCESSING FIRMS IN KIAMBU COUNTY, KENYA
Abstract
The study investigated the relationship between supply chain performance and inventory management practices of the dairy processing firms in Kiambu County. The study focused on the theory of constraints, Resource Based View of the firm (RBV) and the Institutional theory. The study employed descriptive research design. The target population was three diary firms in Kiambu, therefore the study used census sampling method to sample 96 respondents chosen from the supply chain departments, stores department and the consumer department, 85 questionnaires were answered and returned for data analysis. The study analysis was done with the help of (SPSS) a statistical Package for Social version 22. Findings were provided in tables and figures to showing frequency, percentage, mean standard deviation, and significance level of association between study variables. We analyzed the field data using multiple linear regression models and then examined the mean and standard deviation while making conclusions and recommendations. Regression data showed that integration of information is the most important supply chain performance variable that contributes to supply chain performance, followed by material handling, warehousing, and transportation. Inferential statistics showed that there was a significant relationship between information integration and supply chain performance, transportation and supply chain performance, and warehousing and supply chain performance. The study concluded that transportation management plays an important role in giving companies a competitive advantage through customer care and outstanding business. Effective logistics management improves the performance and logistics of the entire supply chain. In this study, dairy companies need to focus on supply chain performance to achieve operational agility, meet customer demands, reduce unnecessary procurement costs, and better manage their facilities. It was recommended that it is essential in Kiambu's dairy business to make full use of the facility, reduce material waste, improve production methods, limit dairy inertia and improve customer interests in these ways. We recommended incorporation of inventory management, financial and non-hierarchical execution of the organization. This study recommended conducting a future study of the impact of logistics management practices on the supply chain performance of other organizations such as manufacturing and service
Key Words: Information Integration, Material Handling, Transportation, Warehousing, Supply Chain
CITATION: Ndiwa, B. M., & Chege, W. (2022). Inventory management practices and supply chain performance of dairy processing firms in Kiambu County, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 999 – 1013.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2239
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