Implementation of Intergrated Supply Chain in Manufacturing Companies Kenya: A Case of Bidco Oil Refineries
Kibera, Lucy Wairimu
Bula, Hannah Orwa
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Organizations adopt numerous business improvement strategies to improve the business performance. Supply Chain (SC) is a part and puzzle of any business. SC is a network of facilities and distribution operations for the entire business system of firms to work together to design, produce, deliver, and service products. Organizations globally have begun to embrace the strategy of integrated supply chain management. Supply Chain Integration(SCI) is a seamless supply chain of close collaborative relationships with unified data and business processes. Despite these benefits many firms in developing countries are striving to cope with management of individual functions instead of integrating activities into key supply chain processes. In Kenya for instance there are many times when there are sudden increases especially in fuel and sugar prices due to shortages. This is a direct effect of poor integration of supply chain systems. A descriptive study design was used to collect quantitative and qualitative data. The population for this study were employees of Bidco Kenya. Out of the 300 employees a sample of 10% was used that gives used. A questionnaire was used to collect data The study found that supply chain integration helps improves firms capability because it provides a systematized way to keep up with processes, it provides cost saving, improved efficiency. In addition it enhances flexibility and tight inventory management that eventually leads to higher profit margins but also it brings about competitiveness. The study recommends that since SCI systems pushes down costs and delivers super efficiencies into the company processes, all private and public companies should strive to adopt the system. Businesses, organizations and companies should look beyond initial price for implementing SCI and recognize that integrating supply chain systems and tools can build a strong and unrelenting relationship with suppliers can in fact pay greater dividends in the long run. Further research is necessary to add more systems and factors that affect supply chain integration.