Implementation of Intergrated Supply Chain in Manufacturing Companies Kenya: A Case of Bidco Oil Refineries
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Date
2016
Authors
Kibera, Lucy Wairimu
Bula, Hannah Orwa
Journal Title
Journal ISSN
Volume Title
Publisher
Contemporary Research Center
Abstract
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.
Description
Research Article
Keywords
Supply Chain Integration, Strategy, Supply Chain, Supply Chain Management
Citation
International Journal of Education and Research Vol. 4 No. 3 March 2016