FACTORS INFLUENCING PERFORMANCE OF SUPPLY CHAIN MANAGEMENT STRATEGIES IN THE NATIONAL GOVERNMENT MINISTRIES IN KENYA
Abstract
This study investigated the factors influencing performance of supply chain management strategies in the national government ministries in Kenya. It was established that IT led to increased flexibility towards serving customer demands. Better use of information technology led to increased inventory control and timely deliveries. Supply chain relationship led to increased customer satisfaction due to better product quality, service delivery and an increased value for money. It was evident that supply chain relationship played a major role in impressing stakeholders with the seriousness of partner intentions. Finding indicated that procurement regulations affected performance of supply chain management strategies. It was established that there was efficiency in the procurement process in the national government ministries and supply chain performance affected their purchasing cycle time. Environmental uncertainties affected performance of supply chain management strategies. It was concluded that information in supply chain was an important factor for favorable and optimal decision for development and survival. The cause of poor efficiency in supply chain was due to lack of accuracy and adequacy in information systems that were responsible for providing and processing of the information. Strong partnerships were critical to performance in supply chain management strategies. Successful supply chain relationships required supervision of suppliers, development of compatible technical capabilities and sharing of information intensively and selectively leading to little or no investment in extra human resources for a tighter relationship with suppliers. The study recommended that supply chain management professionals in the national government ministries needed to embrace collaborative relationships with their suppliers so as to optimize their supply chain costs. Ethics education to the national government procuring entities staff was important to ensure that they served in ultimate objectivity, accountability, and non-discrimination. Organization code of ethics should also be put in place and adhered to. Building the capacity of service providers had been identified as one of the success factors of public procurement reforms. The research results suggested the importance of building partnerships within the supply chain through co-operation and long-term commitment which would increase satisfaction with overall supplier performance.
Keywords: IT, Supply Chain Relationships, Regulations, Environmental Uncertainties, Supply Chain Management
Full Text:
PDFReferences
Adebayo, I.T (2012), Supply Chain Management (SCM) in Nigeria Today: Impact on SCM Performance. European Journal of Business and Social Sciences, Vol 1 # 6
Andrew S. and Linda M. (2010). Managing and Measuring for Supply Chain Relationships Performance British Journal of Management 14(4) pp323-338.
Armistead, Colin and John Mapes (1993), The Impact of Supply Chain Integration on Operating Performance, Logistics Information Management, Vol. 6, No. 4, pp. 9-14.
Arrow, K.J. (1985), ‘The Organization of Economic Activity: Issues Pertinent to the Choice of Market versus Nonmarket Allocation’, in Haveman, Robert H. and Margolis, Julius (eds.), Public Expenditure and Policy Analysis, Chicago, Rand MacNally College Publishing Company, 67-81
Baymout, M (2015): Supply Chain Management for Small and Medium Size Enterprises. International Journal of Advancements in Research & Technology, Volume 4, Issue 5
Boadway, R and Bruce, N (2011), Welfare Economics, Oxford, Basil Blackwell.
Borg W.R & Gall M (1989), Education Research 4th Edition, published and printed by Longman, New York.
Brewer, Peter and Thomas Speh (2010), Using the Balanced Scorecard to Measure Supply Chain Performance, Journal of Business Logistics, Vol. 21, No. 1, pp. 75-94.
Burt, D.N., Dobler, D.W. and Starling, S.L. (2012), World Class Supply Management: The Key to Supply Chain Management, 7th Edition, McGraw-Hill Irwin, New York.
Cunningham, M.T. (2010). An interaction approach to purchasing strategy. International Marketing and purchasing of industrial goods: an interaction approach by
Dawe, R.L. (2004). “An investigation of the pace and determination of information technology Use in the manufacturing materials logistics system”, Journal of Business Logistics, 15 (1),229-58 Dempsey, B. (2003).Research Methods, Fourth Edition, Pearson Publishers.
Dixit, Avinash K. (2012), The Making of Economic Policy. A Transaction-Cost Perspective, Cambridge, Massachusetts, The MIT Press.
Drayer, R.,(2014), The emergence of supply chain management in the North America, Excerpt from a speech to suppliers of Procter and Gamble Co.
Elzarka S, Tipi N, Hubbard N, Bamford C. Creating a Logistics Competency Framework for Egyptian Clothing Companies. SSRN Working Paper Series (2011).
Fantazy, K.A., Kumar, V. and Kumar, U. (2010), Supply management practices and performance in the Canadian hospitality industry, International Journal of Hospitality Management, Vol. 29 No. 4, pp. 685-93.
Fraza V. (2000). SCM for small distributors. Industrial Distribution- 89:81.
Fredendall, L.D. and Hill E. (2011), Basics of Supply Chain Management, St Lucie Press, New York.
Gichuhi, M. (2011) Business Integration and supply chain performance in among commercial banks in Kenya. An MBA research project Submitted to University of Nairobi.
Goldberg, V.P. (2012), Protecting the Right to be Served by Public Utilities, Research in Law and Economics, 145-156.
Handfield R.B, Nichols E.L.J (2009). Introduction to Supply Chain Management. New Jersey: Prentice Hall, Inc.
Happek S. (2011). A UPS Supply Chain Solutions White Paper.
Hortwise (2012). A Study on the Kenya-Dutch Horticultural Supply Chain. The Dutch Ministry of Economic Affairs, Agriculture & Innovation.
Humphreys, P., Lai, M., and Sculli D. (2011). An Inter-organizational Information System for Supply Chain Management. International Journal of Production Economics. 70:245-255.
Johnson, M.E., & Davis, T., (2012), Gaining an edge with supply chain management, APICS - The Performance Advantage, 5, 12, 26-31.
Kangogo (2013). Supply Chain Distribution in Floriculture Industry in Kenya: A Case Study of Equator Flower Ltd. Jomo Kenyatta University of Agriculture and Technology
Kenyanya, .. (2011). Public procurement as an industrial policy tool. Journal of public procurement, 368-404.
Kimalu, P. (2002). A Situational Analysis of poverty in Kenya. Nairobi: Kenya Institute of Public Policy Research and Analysis.
Kombo and Tromp (2009) Proposal and Thesis Writing, published by Pauline publications, printed by Don bosco Printing Press, Nairobi.
Kopczak, L.R. and Johnson, M.E. (2013), ‘The Supply-chain Management Effect’, MIT Sloan Management Review, 44(3): 27.
Koplin, J., Seuring, S., and Mesterharm, M. (2007) Incorporating sustainability into supply management in the automotive Industry - the case of the Volkswagen AG, Journal of Cleaner Production, 15(11-12), 1053-1062.
Kothari, C.R. (2006). Research methodology: Methods & techniques. Fourth Edition, New Delhi: Vishwa Parakashan.
Lalonde BJ (2012). Building a supply chain relationship. Supply Chain Management Review -2:7-8.
Larson, P. (2014). Public vs Private sector Perspectives on Supply Chain Management. Journal of Public Management, 222-247.
Lavrakas P.J (2008). Research Methods, Wiley
Loeb, M. W. (2013). A Decentralised Method of Utility Regulation. Journal of Economic Theory, 399-404.
Lummus, R.R & Alber, K.L., (2013), Supply Chain Management: Balancing the Supply Chain with Customer Demand, The Educational and Resource Foundation of APICS, Falls Church, VA.
Lysons, K. & Farrington, B. (2011). Purchasing and Supply Chain Management. Pearson Education Ltd.
Mabert, Vincent and M.A. Venkataramanan (1998), Special Research Focus on Supply Chain Linkages: Challenges for Design and Management in the 21st Century, Decision Sciences,Vol. 29, No. 3, pp. 537-552.
Macleod, M. (2014), What's new in supply chain software?, Purchasing & Supply Management, June 1994, pp. 22-5.
Mannem S and Gudivada S, (2014), Standard Information Integration in Supply Chain Management. International Journal of Information Technology Infrastructure Volume 3(1), January –February 2014
Mentzer, J.T, (2009). Supply Chain Management. Sage Publications. New Delhi.
Moberg, C.B., Speh, T.W. and Freese, T.L. (2010), SCM: making the vision a reality, Supply Chain Management Review, Vol. 7 No. 5, pp. 34-40.
Mugenda, A. & Mugenda O. (2009) Research Methods: Qualitative and Quantitative Approches. (2nd Ed.). Nairobi: ACTS.
Ngunyi I.W (2014), Procurement Practices and the Performance of Parastatals in Kenya, A Thesis submitted in partial fulfillment of the requirements for the award of the degree of master of business administration university of Nairobi (Unpublished)
Njuguna, M. (2013) Value Chain Management practices and Supply chain performance of large manufacturing firms in Nairobi. An MBA research proposal Submitted to University of Nairobi.
Nyamasege O.J and Biraori O.E. (2015), effect of supplier relationship management on the effectiveness of supply chain management in the Kenya public sector. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 1,
Nyaoga R.B, Magutu P.O and Aduda J (2011), Is there a Link between Supply Chain
Strategies and Firm Performance? Evidence from Large-Scale Manufacturing Firms in Kenya: Journal of Operations and Supply Chain Management
Olsha, M. (2010). High performance in Procurement Risk Management (Doctoral dissertation, Massachusetts Institute of Technology).
Ou, C.S., Liu, F.C., Hung, Y.C. and Yen, D.C. (2010), A Structural Model of Supply Chain Management on Firm Performance, International Journal of Operations & Production Management, Vol. 30 No. 5, pp. 526-45.
Park, D., & Krishnan, H.A. (2013). Supplier selection practices among small firms in the United States: Testing three models. Journal of Small Business Management, 39(3), 259-271.
Pejovich, Svetozar (1979), Fundamentals of Economics: a Property Rights Approach, Dallas, Fisher Institute.
Perry, M. and Sohal, A.S. (2014), Quick response practices and technologies in developing supply chains, Management, Vol. 30 Nos 7/8, pp. 627-39.
Pochard, S. (2012). Managing risks of supply-chain disruptions: dual sourcing as a real option (Doctoral dissertation, Massachusetts Institute of Technology).
Porter, Michael (1985), Competitive Advantage, New York: The Free Press.
Reck, R.F., & Long, B.G., (2014). Purchasing: a competitive weapon. Journal of Purchasing and Materials Management. International Journal of Econometrics and Financial Management. Vol. 2 No. 2, 59-71
Rose-Ackerman, (2011), ‘Progressive Law and Economics - and the New Administrative Law’, 98 Yale Law Journal, 341-368.
Ross, D. F. (2014), Competing through Supply Chain Management: Creating Market Winning Strategies Through Supply Chain Partnership, Kluwer Academic Publishers, Boston.
Roth, A.V., & Miller, J.G., (2010). Manufacturing strategy, manufacturing strength, managerial success, economic outcomes. In: Ettlie et al. (Eds.), Manufacturing Strategies, Kluwer Academic Publication, Boston, MA, pp. 97–108.
Schneider, M. (2012), Radio Frequency Identification (RFID) Technology and its Applications in the Commercial Construction Industry, University of Kentucky thesis, Lexington.
Sekeran, U., (2009). Research Methods for Business: A skill Building Approach. London: Wiley & Sons.
Sundram V.P.K, Ibrahim A.R and V.G.R. Chandran Govindaraju (2011): Supply chain management practices in the electronics industry in Malaysia: Consequences for supply chain performance. An International Journal Vol. 18 No. 6, pp. 834-855
Stank, T.P, Keller, S.B and Daugherty P.J (2001), Supply chain collaboration and logistical service performance. Journal of Business logistics. Volume 22, No.1
pp. 29–48
Talib F, Rahman Z, and M.N. Qureshi (2011): A study of total quality management and supply chain management practices. International Journal of Productivity and Performance Management Vol. 60 No. 3, pp. 268-288
Teece, David, Gary Pisano, and Amy Shuen (1997), Dynamic Capabilities and Strategic Management, Strategic Management Journal, Vol. 18, No. 7, pp. 509-533.
Towill, D. (2012), The seamless supply chain - the predator's strategic advantage, International Journal of Technology Management, Vol. 13 No. 1, pp. 37-56.
Upton, D. and McAfee, A. (2012), The real virtual factory, Harvard Business Review, July-August, pp. 123-33.
Woo, K. ve Ennew, C.T. (2004) “Business-to- Business Relationship Quality: An IMP Interaction- Based Conceptualization and Measurement” European Journal of Marketing, 38(9/10):1252-1271.
DOI: http://dx.doi.org/10.61426/sjbcm.v4i4.591
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.