Impact of supply chain management risks and challenges on performance of food manufacturing firms in greater Nairobi Kenya

Abstract

The government of Kenya should realize that sustainable business development is among the main goals of the millennium development goals. In this realization it would be therefore critical for the government to be on the forefront in terms of policy formulation towards development of food manufacturing firms and empowering small scale farmers in their food production. This will help in making Kenya a food sufficient country in line with vision 2030. Incentives on the food manufacturers should be on the forefront since only incentives with economic benefit will entice the business community to embrace food manufacturing for sustainable development in the country. Relevant technology could also be subsidized where appropriate. Enforcement of laws and implementation of structures for fare business practice should be implemented. The government could also take up private public partnerships with food manufacturers to ensure food security in the country is enhanced. This study was carried out to ascertain the impact of supply chain management risks and challenges facing food manufacturing firms in greater Nairobi Kenya and their effects on performance. The objectives were: to establish the risks and challenges facing food manufacturing supply chain management in greater Nairobi Kenya and to determine the effects of supply chain risks and challenges on performance of food manufacturing firms in greater Nairobi Kenya. The study adopted descriptive survey research design where a census of all food manufacturing firms was obtained. Data was successfully collected from supply chain managers or their equivalents, analyzed using Statistical package for social sciences (SPSS) and presented using percentages, mean, standard deviation in the form of tables and graphs. Regression analysis was used to determine the effects of supply chain risks and challenges on performance of food manufacturing firms in greater Nairobi Kenya. The findings of the study indicate that the main supply chain management risks are security risks; demand risks; supply risks and operational risks. The main supply chain management challenges are also outlined. The regression analysis produced a model that shows proper management of supply chain management risks and supply chain management challenges would lead to increase in firm‟s performance. The study encountered limitations such as inadequate time and delays by respondents putting pressure on the time allocated for completing the project.