Supply Chain Risk Management and Performance of Hotels in Kenya

Abstract

The research sought to establish the supply chain risk management and performance in three to five star hotels in Nairobi, Kenya. It identified the imperatives for implementation of comprehensive supply chain risk management. A total of 18 hotels were sampled. The research shows that effective supply chain risk management can improve organizational performance but there will be need for adequate infrastructure to be available in companies for implementing SCRM. It was found that the evaluation of risk came out as the major supply chain practice that most of the hotels were using to manage their supply chain risks. The study also shows the implementation of SCRM requires various structural measures to align risk management, strategic planning, information system and organizational culture together in order to realize the better outcome. The influence of SCRM practices on the performance of the hotels supply chain was found through the regression equation, to be positively correlated with the firms supply chain. There was also a little collinearity between the dependent variables found in the study. Risk in the supply chain is explored in terms of risk/performance, drivers, consequences and management responses. The key to effective SCRM is the ability to establish long term strategic relationships with supply chain partners. Practitioners should work to fully develop power, benefits and risk reduction linkages with partners within their specific supply chains in order to maximize value to the ultimate customers of the supply chain.