Inventory Management Practices and Supply Chain Performance of Dairy Processing Firms in Kiambu County, Kenya
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Date
2022
Authors
Ndiwa, Benedict Mwendwa
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Costs and losses connected with the supply chain performance impacts firms thus its success is considered crucial in dairy firms. In Kiambu's dairy industry, the problem of inefficiency and unexplored contradiction in addressing supply chain performance challenges has had disadvantages in terms of operational flexibility, the costs associated with material handling, and the inefficiencies of dairy firm’s reliability and responsiveness. The studies’ general objective was to investigate the effect of supply chain performance and inventory management practices of the dairy processing firms in Kiambu County. The research objectives were to find out the effect of information integration on supply chain performance of Dairy Processing firms in Kiambu County, to determine the effect of material handling on supply chain performance of dairy Processing firms in Kiambu County, to find out the effect of transportation on supply chain performance of Dairy processing firms in Kiambu County and to determine the effect of warehousing on supply chain performance of dairy processing firms in Kiambu County. The study focused on the theory of constraints, Resource Based View theory (RBV) and the Institutional theory. The study employed a descriptive research design. The target population was three dairy firms in Kiambu, therefore the study used census sampling method to sample 96 respondents chosen from the supply chain departments, stores department and the consumer department, 85 closed ended questionnaires were answered and returned for data analysis. In assessing reliability the study used cronbach alpha while content validity was used to test reliability. The study analysis was done with the help of (SPSS) a statistical Package for Social version 22 where findings were provided in tables and figures to show frequency, percentage, mean standard deviation, and significance level of association between study variables. Descriptive statistics were used to assess central tendency and variability. Researcher analyzed the field data using multiple linear regression models and then examined the mean and standard deviation while making conclusions and recommendations. Regression data show that integration of information is the most important supply chain performance variable that contributes to supply chain performance, followed by material handling, warehousing, and transportation. Inferential statistics showed that there was a significant relationship between information integration and supply chain performance, transportation and supply chain performance, and warehousing and supply chain performance. The study concluded that transportation management plays an important role in giving companies a competitive advantage through customer care and outstanding business. Effective logistics management improves the performance and logistics of the entire supply chain. It is recommended that Kiambu's dairy firms should make full use of the facility, reduce material waste, improve production methods, limit dairy inertia and improve customer interests in these ways. Also dairy companies need to focus on supply chain performance to achieve operational agility, meet customer demands, reduce unnecessary procurement costs, and better manage their facilities. This study recommends conducting a future study of the impact of logistics management practices on the supply chain performance of other organizations such as manufacturing and service
Description
A Research Project Submitted to the School of Business in Partial Fulfillment for the Award of Degree of Master of Business Administration (Procurement and Supply Chain Management) of Kenyatta University June, 2022
Keywords
Supply Chain Performance, Inventory Management Practices of Dairy Processing Firms, Inventory Management and Supply Chain, Dairy Processing Firms in Kiambu