Supply Chain Management and Organizational Performance in the Sugar Industry in Kenya

Abstract

Businesses today operate in a market-driven, customer-oriented era and to survive in such a competitive environment, they have to be flexible, adaptable and above all provide superior service. Supply chain management, customer driven corporate policy, and other elements of supply chain management are frequently cited as strategic options to achieve competitive success. This study presents details of a survey carried to determine whether particular supply chain practices and customer relations practices can impact corporate performance. The objective of the study was to establish the effect of supply chain management practices on organizational performance of Sugar firms in Kenya. The research design adopted was descriptive research design. Data was collected using a questionnaire which consisted of both open and closed ended questions. The data collected was analyzed using descriptive statistics and also an inferential analysis involving a regression was performed. The findings of the study were that supply chain management practices had a positive effect on various parameters of performance. It was found that effective implementation of supply chain management practices led to decrease in the operational cost of the firm, reduction on the response time for product design change, increased accuracy of order processing for customers which leads to improved market share and customer satisfaction. The study recommends that the management of the sugar firms consider implementing fully various supply chain practices due to its positive effects and also for the government to provide incentives on adoption of certain supply chain practices such as green supply chain due to its effect on the environmental sustainability.