Supply Chain Management Practices and Performance of Firms in Elevator Industry in Kenya.

Abstract

The purpose of this study was to determine the effect of supply chain management practices on performance of Elevator firms in Kenya. A descriptive research design was used to establish the effect of supply chain management practices on performance of elevator firms in Kenya. The target population was 13 elevator firms in Kenya. Given the relatively small number, a census was conducted. Primary data was collected by means of semi structured questionnaire. Descriptive statistics such as mean scores, standard deviation, regression and correlation was used to analyze the data. The negative relationship between performance and pricing could be attributed to the negative impact of local taxes on the development and maintenance of high valued machines. The level of service rendered to the public by the some elevator firms does not represent value for money paid due to poor materials. Furthermore, most elevator firms are poorly maintained and often in dilapidated status. Hence, their performance is very low even though building values have been rapidly rising. The study concluded that supply chain management practices have a negative impact on elevator firm’s performance especially where service delivery is poor, mismanagement and corruption abounds. It was also concluded that pricing is negatively related to firm’s performance. This is attributed to the negative impact of local taxes on the development and maintenance of high valued machines. The level of service rendered to the public by the some elevator firms does not represent value for money paid due to poor materials. Furthermore, most elevator firms are poorly maintained and often in dilapidated status. Based on the above, it was recommended that elevator firms should incorporate customer service as a supply chain management practice to all departments because they work towards achieving the overall performance of the firms. There should be a clear policy on the repairs and maintenance practices as there are some firms which take long to provide repairs and maintenance. Elevator firms are usually very busy place. Some respondents showed signs of declining the researcher’s advances by failing to cooperate fully as expected, citing that they are having a tight schedule. Further research could be carried on the influence of supply chain management practices on performance of elevator firms in Kenya; there are other supply chain management practices that are different from the ones identified in this study which include outsourcing.