The relationship between supply chain failures and customer satisfaction among milk processing firms in Kenya

Abstract

A study was carried out to establish the relationship between supply chain failures and customer satisfaction among milk processing firms in Kenya. The study had two objectives to achieve: To determine the factors of supply chain failures of milk processing firms in Kenya and to determine the effect of supply chain failure on customer satisfaction for processed milk in Kenya. The study employed a descriptive research design. Data was collected through a questionnaire from 25 firms out of the 34 milk processing firms in Kenya. Only 25 firms responded. The data collected was analyzed by use of frequencies, percentages and regression. The major findings from the study indicate that deterioration in milk production, poor supplier relationship management, and poor management of inventory and pilferage of inventory are among the causes of supply chain failure. The study recommends that milk processing firms need to practice good risk management to avoid supply chain failures. The study also recommends that milk processing firms in Kenya should also find means of maintaining good relations with their suppliers so that they can maintain smooth flow of processed milk products to their customers.