Competitive sourcing initiatives and supply chain performance of supermarkets in Nairobi county, Kenya

Abstract

The objectives of the study were to determine the competitive sourcing initiatives implemented by the supermarkets in Nairobi County, Kenya; and to establish the relationship between competitive sourcing initiatives and supply chain performance as applied by the supermarkets in Nairobi, Kenya. This study adopted descriptive research design. The target population of study consisted of 102 supermarkets operating in Nairobi. The study adopted stratified and simple random sampling methods to choose the study sample size where a sample of 30% was taken to give a sample size of 31 supermarkets operating in Nairobi. This study used structured questionnaires to collect primary data. The questionnaires were administered through drop and pick later method. The respondents included, the supply chain manager, purchasing manager, operations manager or head of purchasing in the supermarkets in Nairobi, Kenya. Data collected was analyzed using both descriptive which included frequency tables, percentages, mean scores and standard deviation and inferential statistics which included regression analysis and ANOVA. The analysis was aided by statistical software. The analyzed data was presented using tables, graphs and bar charts. The results found out that the supermarket practiced transparency in supplier selection to a very great extent and that the tendering process exhibited honesty and accountability. However, factors such as high competition, lack of enough finances, lack of effective communication and lack of knowledge when it comes to implementation of sourcing practices affected the implementation of competitive sourcing initiatives to a moderate extent. The study concludes that there was a positive and significant relationship between supply chain performance and competitive sourcing initiatives. The study recommends that there is need for more training to the employees on the best competitive sourcing practices and the best achieved so as to encourage the management in supermarkets to adopt such practices. There is also need to adopt the appropriate technologies and ensure effective communication and cooperation among the supply from all parties involved