Information integration on supply chain management: A case study of food processing firms in Kenya

Abstract

According to Gavirneni 2002; Hult et al. 2004; Kulp et al. 2004; Lee 2004; Li 2002; Liu et al. 2005; Soliman and Janz (2004), the central aim of information integration on supply chain management is to ensure that organizations can reap significant returns to investment, some which include decreased order cycle times, increased agility to respond to customer demand, and increased firm profitability. A synergic supply system between companies needs to be created so as to compress information time so that the information circulating through the system is fresh and meaningful. Customers consistently demand that products are delivered faster, on time, and with no damage. This can only be achieved with proper coordination of efforts by linking systems and processes to create synergy. The main purpose of this study was to examine information integration on supply chain management among food processing firms in Nairobi. The study adopted the exploratory survey design to study the information integration on SCM in food processing firms in Nairobi. The target population was all private food processing entities in Nairobi, who are members of KAM. Using the stratified sampling method, 30 firms was picked to constitute the sample. This represented 30 % of the sampling population. The primary data collection instrument that was used to collect data was the questionnaire. Descriptive statistics was used to analyze the data. From the study findings, the researcher concludes that the current Information systems among the food processing firms in Nairobi satisfy supply chain communications requirements in the organization as there is smooth communication flow between the customers and the firm thus leading to satisfaction of both. The food processing firms have integrated information technology in order processing, dispatch, distribution, purchasing, transport management, production and inventory control. This has reduced time in servicing customer orders, increased financial performance of the organization, increased customer service levels, increased timely deliveries. The study recommends that to improve information integration on supply chain management, the management should make sure that all the respective heads of departments have full and clear information on time to enhance easy decision making, using the latest model of software and hardware available in the market, training of staff, adopt real time solutions in ICT and increase external linkages with customers