Supply Chain Risk Management Strategies and Resilience of Beverage Manufacturing Firms in Nairobi City County, Kenya

Abstract

Almost every manufacturing company relies on suppliers for the supply of various types of raw materials. However, reliance on suppliers exposes the manufacturing firms to diverse Supply Chain (SC) related risks. With a special focus on the Nairobi City County, the current study evaluated the influence of Supply Chain Risk Management (SCRM) strategies on the resilience of the beverage manufacturing firms against supply chain related risks. Its research objectives were three and they included; determining the influence of risk avoidance measures on the firms’ resilience, assessing the influence of risk prevention measures on the firms’ resilience and evaluating the influence of risk mitigation measures on the firms’ resilience. Both correlation and multiple linear regressions data analysis methods were used to evaluate the influence that SCRM strategies had on the firms’ resilience against supply chain related risks. The study found a positive strong correlation that was statistically significant between the firms’ resilience and risk avoidance measures, r = .778, p < 0.05. Also, it found a positive weak correlation that was statistically significant between the firms’ resilience and risk prevention measures, r = .327, p < 0.05. Additionally, it found a positive strong correlation that was statistically significant between the firms’ resilience and risk mitigation measures, r = .843, p < 0.05. In view of this, firms’ risk avoidance measures were found to have statistically considerable influence, t = 9.329, p < 0.05, on the firms’ resilience against SC related risks. Also, firms’ risk prevention measures were found to have statistically considerable influence, t = 3.298, p < 0.05, on the firms’ resilience against SC related risks. Furthermore, firms’ risk mitigation measures were found to have statistically considerable influence, t = 16.269, p < 0.05, on the firms’ resilience against SC related risks. The study concluded that the beverage manufacturing firms based in the Nairobi City County should utilize risk avoidance, risk prevention and risk mitigation measures to enhance their resilience against supply chain related risks. Also, it recommended that the firms should utilize the aforementioned SCRM measures to enhance their resilience against supply chain related risks. However, they should evaluate how the risk prevention measures undermine their resilience against SC related risks.