EFFECT OF SUPPLY CHAIN VULNERABILITY ON SUPPLY CHAIN PERFORMANCE OF LOGISTICS FIRMS IN KENYA: A CASE OF MAERSK KENYA LIMITED
Abstract
The general objective of the study was to examine the effects of supply chain vulnerabilities on the supply chain performance in logistics firms in Kenya. The study adopted a descriptive research design. The total population of the study was one hundred and eighty nine (189) employees working at Maersk Kenya limited. The study sampled one hundred and seven (127) respondents who participated in the study. The research further used the simple random sampling method because it gave every member of the population equal chances of being selected. Structured questionnaire was used to collect the primary data from the sample size. Data was collected using structured questionnaire to ensure consistency. The raw data from the respondent was analyzed using statistical package for social science (SPSS version 24.0) analysis software. The research targeted 127 respondents to survey. All of them were supplied with questionnaires but 115 questionnaires administered were filled and returned. Therefore the response rate was 90.9%. The four independent variables that were studied, explained 81.14% of the Supply chain performance as represented by adjusted R square. This therefore meant that other variables not studied in this research contributed 18.6% of the Supply chain performance. The study recommended that there should be effective communication between all tiers in the supply chain should to create awareness of the end customer demand and not just of the orders placed by a single tier. The study recommended that managers must carefully measure and manage two conflicting objectives that is service and inventory. The firm should adopt a portfolio analysis technique which analyses the supply base according to supplier risk factors. The risk related to exposure to supply failure and supply market complexity should be used to as a proactive supply chain risk management process. The study recommended that more technology systems, such as point-of-sales product scanning and vendor-managed inventory should be adopted to improve the performance of the firm. Such systems would reduce risk exposures and the bullwhip effect as well.
Key Words: Bullwhip Effects, Order Fulfillment, Supply Base Optimization, ICT Integration, Supply Chain
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.987
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