Outsourcing and supply chain performance among mobile telephone service providers in Kenya

Abstract

This study aimed at establishing the relationship between outsourcing and supply chain performance among mobile phone service providers in Kenya. Supply chain performance was measured by use of four variables namely: Operation System Responsiveness, Logistic Process Responsiveness, Supplier Network Responsiveness and Competitive Advantage. Each of the four independent variables was captured as the average response to the factors identified as determining the performance of each of the variables. According to the regression analysis, Supplier Network Responsiveness had the greatest impact on outsourcing having a coefficient of 0.61273. The Operating System Responsiveness had the greatest negative effect on how much is outsourced with a coefficient of -0.54204. The regression was significant and the variation in Operation System Responsiveness, Logistic Process Responsiveness, Supplier Network Responsiveness and Competitive Advantage strongly explained the variation in Outsourcing. It was found from the study that supply chain system responds rapidly to changes in product volume demanded by customers and to changes in product mix demanded by customers, it effectively expedites emergency customer orders, rapidly reconfigures equipment to address demand changes, rapidly changes manufacturing processes to address demand changes and rapidly adjusts capacity to address demand changes. The supply chains respond rapidly to unexpected changes in demand, warehouse capacities rapidly adjust to changes in demand, transportation carriers are rapidly varied, the supply chains also rapidly accommodate special or non-routine customer requests and shipment deliveries are effectively done