Supply chain management challenges and supply chain performance of humanitarian organizations in Nairobi, Kenya

Abstract

In a disaster struck region, each supply chain has to be built up from the very beginning, and is usually very different to previous ones. In addition, aid workers‟ knowledge and skills are of utmost importance to guaranteeing a quick response (Tomasini et al, 2009). Due to the fact that relief operations require a large number of people and are often characterised by a high level of uncertainty, the allocation of skilled workers and of knowledge about former humanitarian operations is of utmost importance (Gustavsson, 2003). According to Kenya Red Cross (2014) cases of disasters, both natural and man-made in Kenya have been on the increase and has left devastating effects to the human population. The current study sought to investigate SCM challenges and their effect on the SC performance of humanitarian aid organizations in Nairobi, Kenya. This study took a descriptive cross-sectional survey research design. The study targeted all the 708 humanitarian organizations operating within Nairobi County. The study used stratified sampling technique in coming up with the study sample of 142 humanitarian organizations. The study used questionnaires as the instrument of data collection. Quantitative data was analysed through descriptive statistics and correlation analysis SPSS V 18.0 while qualitative data was analysed through content analysis. From the findings, the study concludes that there are numerous SCM challenges in the humanitarian sector in Kenya. The SCM challenges highly contributed to supply chain inefficiency in delivery of the relief supplies and negatively affected the operations of the humanitarian organizations. The Kenyan humanitarian sector was faced by multiple SCM challenges which compromised their efficiency in supply chain. The SCM challenges includes; high turnover, uncertainty in terms of supplies, poor management of relationships with the partners in the supply chains, poor alliance management practices, lack of coordination, uncertainty in terms of assessment, Poor infrastructure, lack of open and honest collaboration between the parties in supply chain. The supply chain management challenges experienced by the humanitarian sector negatively impacted on the SC performance of humanitarian organizations in Nairobi, Kenya. The SCM challenges resulted in SC cost increment, deterred HO to achieve timeliness in humanitarian aid delivery, lead to failure to deliver relevant humanitarian aid materials, and lack of reliability and efficiency in the humanitarian SC. There is a positive relationship between SCM challenges and SC performance of humanitarian organizations in Nairobi, Kenya. The financial resources is the most significant SCM challenges facing humanitarian organizations in Nairobi, followed by disaster prediction, uncertainty in terms of demand, employee turnover, planning, coordination, uncertainty in terms of supplies, uncertainty in terms of assessment, infrastructure, quantity of materials to be transported and local customs and habits in the relief area respectively. The study recommends that the management of humanitarian organizations should allocate adequate budgetary resources towards human resource training to increase employee competence in handling SCM challenges as well as increase their retention rates. The management of humanitarian organizations should invest in an integrated supply chain management system for monitoring and controlling their supply chain and addressing SCM challenges. The management of humanitarian organizations should conduct a research on the different relief areas they are operating in to ensure that the SCM initiatives being implemented are effective in addressing the specific SCM challenges towards enhancing their SC performance.