The impact of supply integration on the supply chain performance in the manufacturing firms in Kenya

Abstract

Nowadays business environment is characterized by faster technological development, shorter product life cycle and more intense global competition. This new competitive landscape force organizations to actively acquire new ways to achieve competitive advantage since a firm’s competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. The most successful manufacturers seem to be those that have carefully linked their internal processes to external suppliers and customers in unique supply chains. Manufacturing accounts for 13% of gross domestic product (GDP) of Kenya’s industrial sector. The aim of this study was to investigate impact of supply integration on the supply chain performance in the manufacturing firms in Kenya. The target population of this study was 549 manufacturing firms registered with Kenya Association of Manufacturers (KAM) and operating in Nairobi. This study employed descriptive research design. The study relied mostly on primary data sources. The study generated both qualitative and quantitative data where quantitative data was coded and entered into Statistical Packages for Social Scientists (SPSS Version 17.0) and analyzed using descriptive statistics. Forty nine (49) out of the 60 respondents targeted completed the questionnaires making a response rate of 82%. The study concluded that organizations encourage information sharing such as marketing information, production information and technological information. Reducing total cycle time, acquisition of new ideas for products and reducing total logistics costs influence supply chain performance. Purchasing department plays a key role in fostering relationships and communication to improve quality performance for both the supplying and the buying firm. The study found that the organizations have realized significant supply chain coordination through supply chain integration. Through supply chain integration organizations have been able to attain of strategic goals, reduce risks and improve internal and external coordination of operation process.