EFFECT OF SUPPLY CHAIN AGILITY ON PERFORMANCE OF MANUFACTURING FIRMS IN MOMBASA COUNTY, KENYA
Abstract
Efficient supply chain management constitutes a crucial element within the operational framework of contemporary business models, impacting both efficacy and profitability. Given the unpredictable fluctuations prevalent across various business sectors, the imperative of supply chain agility has emerged. Companies must harness agility within their supply chain domain to enhance organizational performance and meet the dynamic demands of the market. This research, conducted within the manufacturing sector of Mombasa County, ascertained the effect of supply chain agility on organizational performance. The theoretical frameworks underpinning this study encompass the Dynamic capabilities view theory and Fugate logistics theory. The research design employed is descriptive, and the population under consideration was the manufacturing companies within Mombasa County, with a focus on senior personnel engaged in the supply chain systems. The study's population is 100 manufacturing companies, and a census approach was adopted, involving 100 supply chain managers as the targeted audience. Challenges encountered during the research process include reluctance among respondents to participate due to concerns about the potential exposure of confidential data to competitors, time constraints faced by respondents, and a cautious approach when interacting with the broader public. The study's descriptive findings demonstrate that a large proportion of the participants strongly concurred that manufacturing adaptability decreases manufacturing lead times. In addition, most of the respondents stated that the manufacturing adaptability improves delivery reliability compared to those who disagreed. Moreover, respondents strongly agreed that manufacturing adaptability improves responsiveness to changing market needs, while also improving level of customer service. The descriptive results show that logistics adaptability improves the capacity to add/delete delivery segments, while majority of respondents strongly agreed that logistics adaptability improves the capacity to add/delete delivery types. In light of the findings, the study recommends that procurement firms within supply chain networks focus on developing manufacturing adaptability and logistic adaptability. This strategic emphasis aims to enhance the performance of manufacturing firms, fostering collaboration in product creation, capacity enhancement, reduction in order processing cycle time, and coaching and empowerment. Furthermore, the adoption of such measures is essential for ensuring on-time shipment of goods and aiding manufacturing enterprises in effective risk management by identifying, preventing, and remedying potential risks.
Keywords: Supply Chain Management, Supply Chain Agility, Organizational Performance, Manufacturing Adaptability, Logistic Adaptability, Manufacturing Firms
CITATION: Ali, W. W. (2024). Effect of supply chain agility on performance of manufacturing firms in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1535 – 1545. http://dx.doi.org/10.61426/sjbcm.v11i2.2984
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2984
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