Factors influencing effective supply chain management in delivery of public development projects in Nakuru town and Baringo Central Constituency, Kenya

Abstract

In a contemporary shift towards result-based management across governments and a deliberate focus on customer service in both development initiatives and business environments, there is a problem in effective management of supply chain in projects that lead to late completion and overrun in costs. The study sought to find out the factors influencing effective supply chain - management in delivery of public development projects. The objectives of the study were to assess the role of supply chain management in timely and cost effective delivery of public funded development projects, access the importance of early identification of a need in projects supply chain-management, the role of supplier involvement and determine challenges facing supply chain management procedures in public funded development projects. A descriptive survey was conducted using a sample size of 88 officers who are actively involved in supply chain management in projects. Questionnaires were then circulated to these officers through research assistants and were analysed using Statistical Processes for Social Scientists. A response of 86% was obtained. 52.6% of suppliers could not deliver within the specified timeliness. 52.6% of used a standby list of reliable suppliers and act on need basis. 57.9% of the respondent’s performance measurement systems and internal company optimization. 52.6% of respondents felt implementation of law and engaging professionals on how government, can have influence towards better methods of supply chain management. 31.6% were of the opinion that adhoc requisition by user department should be flexible with reliable suppliers and advance communication. The findings from the survey revealed that majority of the Project Management Committees had attained university education 68.4%, 52.6% had attended at least one training. Majority of respondents indicated although a training needs analysis was carried out, it did not emphasize on the areas of supply chain management as a method of cutting costs. 42% of the respondents chose cost effectiveness in procurement as a method of moving towards lean supply. 15.8% chose enhanced supplier relationship and only 5.3% chose involvement of supply chain staff identified. There was however little or no stakeholder involvement. The study recommended that recommendation into the Project Management Committees should be set on the minimum set requirements. Training especially those based on project supply chain management should be encouraged. In addition there is need to develop steps to develop sound monitoring indicators that are jointly formulated before monitory and education and auditing takes place. The study provides information to county governments and policy makers involved in project supply chain management in Kenya on better methods of managing supply chain from early identification of a need, early supplier involvement, and better selection of procurement method.