DIGITAL TECHNOLOGY AND THE PERFORMANCE OF SUPPLY CHAIN SYSTEMS IN MANUFACTURING FIRMS IN KENYA. A CASE OF GIANT MILLERS LIMITED
Abstract
As global industries embrace digital technology, understanding its effects on supply chain processes becomes crucial for boosting competitiveness and operational efficiency. Digital advancements have significantly influenced business innovation and performance, particularly in supply chain management, where digitization has become integral for optimizing procurement functions and aligning with evolving market demands. This study therefore aimed to examine the effect of digital technology on the performance of supply chain systems in manufacturing firms in Kenya. The study specifically examined the effect of digital supply chain transformation, supply chain agility, lean supply chain and supply chain collaboration on performance of supply chain systems at Giant Millers Limited. The study was anchored on resource-based view, lean production theory, and technology-organization-environment framework. The study adopted a descriptive design and targeted 229 employees of Giant Millers Limited in Nairobi, Kenya. The study used a simple random sampling technique to select the respondents for the study in conjunction with purposive sampling technique. The study used structured questionnaires that were issued to the respondents through a drop and pick later method. Data analysis involved quantitative analysis to establish trends in the responses. Similarly, regression analysis was performed to establish the relationship between digital technology metrics and performance of supply chain systems at Giant Millers Limited. Results revealed a strong positive relationship between digital supply chain transformation, supply chain agility, lean practices, and supply chain collaboration and the performance of supply chain systems at Giant Millers Limited in Kenya. These variables were found to significantly influence the company’s operational efficiency, collectively explaining approximately 63.9% of the variation on performance. ANOVA results also supported the model's significance, showing that each variable contributed positively and meaningfully, with digital supply chain transformation emerging as a key factor driving enhanced performance. The study therefore, recommended that Giant Millers should adopt emerging technologies like IoT, AI, and block-chain to improve supply chain transparency and efficiency, alongside ongoing employee training for effective implementation. To enhance agility, GML should develop flexible workflows and engage in regular scenario planning while fostering cross-functional teams for better communication. Additionally, conducting audits to eliminate inefficiencies and standardizing operations to boost productivity. The study further recommended for strengthening partnerships with suppliers and investing in advanced communication tools to enhance collaboration, and improve supply chain effectiveness and resilience. The researcher suggested for more studies to focus on how companies can leverage big data to optimize inventory management, demand forecasting and supplier selection.
Keywords: Digital Technology; Supply Chain Transformation, Supply Chain Agility, Lean Supply, Supply Chain Collaboration and Supply Chain Performance.
CITATION: Thuku, E. G., & Nteere, K, K. (2025). Digital technology and the performance of supply chain systems in manufacturing firms in Kenya. A case of Giant Millers Limited. The Strategic Journal of Business & Change Management, 12 (2), 97 – 116. http://dx.doi.org/10.61426/sjbcm.v12i1.3200
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3200
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