Supply chain management practices at equator bottlers limited, Kenya.

Abstract

Supply chain management (SCM) encompasses all activities involved in the transformation of goods from the raw materials stage to the final stage when the goods and services reach the end customer. Supply chain management involves planning, design and control of flow of material, information and finance along the supply chain to deliver superior value to the end customer in an effective and efficient manner. Traditionally, firms have focused their energies on three main functions: purchasing, manufacturing and distribution. Transport and storage activities within individual functions and across functions have not received adequate attention, and have usually been handled by the department managing the logistical aspects of the company. To gain insights into the institutional set up of SCM arrangements, different theories have been developed that are useful in structuring and analyzing management decisions in supply chains. The study was carried out on Equator Bottlers Limited Kenya, a franchise of the Coca-Cola Company, located in Kisumu. The study objectives included: establishing the supply chain management practices at EBL Kenya, challenges faced by EBL Kenya while implementing its supply chain management strategies and measures of supply chain management successfulness. The research design adopted by the study was a case study which involved an examination of the supply chain management practices at EBL Kenya. A case study was chosen as this enabled the researcher to have an in depth understanding of the company. Primary data was collected using interview guides. The interviewee’s were the various departmental heads. Interview guides were developed from literature as well as adopted from previous studies. Data collected that was purely qualitative in nature was analyzed using content analysis. The study established that the supply chain management practices adopted by EBL Kenya included; warehousing, inventory control, timeliness of delivery, frequent contact with supply chain members and highly integrated information system throughout the supply chain. The study also established that the supply chain management challenges faced by the company included; poor fleet management, poor motor vehicle maintenance, rising operating costs and lack of performance measurements in supply chain. From the discussions and conclusions, the study recommends that the concept of supply chain management should be thoroughly addressed by EBL Kenya in order to reduce the supply chain management challenges faced by the company.