Supply chain performance measurement in the aviation industry: a case study of Kenya airways ltd

Abstract

This research work sought to explore the Supply Chain Performance Measurement in the Aviation Industry. The key objectives of the study were, to establish the supply chain performance measures used by the company and to determine the challenges encountered in supply chain performance measurement. The study was conducted at Kenya Airways Ltd. Primary data was collected through the use of a structured questionnaire, and subsequently analysed using descriptive statistics, mainly the mean. The research findings indicate that the company measures several dimensions of performance within their supply chain. Major dimensions measured include, Quality, Effectiveness of the procurement activities, Stock turnover, Number of Supplies rejections, Cost, Flexibility, among others. These dimensions are measured regularly, and the results obtained communicated to the internal channel members, as well as the company's suppliers. The research findings reveal a growing application of the concept of supply chain and its management in the company. As competition, globalisation and technological advancements continue to affect how business is done; every effort should be geared towards ways of saving on costs. There is need to explore the benefits of having an integrated supply chain as a form of gaining competitive advantage. In addition, as the concept of supply chain gains prominence, the company needs to improve awareness across the entire company in order to sensitise chain members on the role they play in having an effective and efficient supply chain. Some of the challenges to effective supply chain performance measurement are internal factors that can be effectively addressed through improved communication and consultations. The external challenges to effective supply chain performance measurement should however be addressed through constant consultation with external chain members.