Raw Materials Delivery Systems and Operations Performance of Agrochemical Firms in Kenya

Abstract

The motive behind this study was to investigating the raw materials delivery systems in the agrochemical sector in Kenya and their effects on the operations of the organizations. The objectives of the study were to establish raw materials delivery systems used by agrochemical firms and the relationship between raw materials delivery systems and operational performance of agrochemical firms in Kenya. Descriptive research design was used in this study. The target population for this research was the agrochemical industries in Kenya. The employee in charge of operations in the companies that deal with agrochemicals were targeted. The study relied mostly on primary and secondary data sources. Primary data was collected using structured questionnaires. Employees of Agrochemical firms were respondents of the study. Both postal and electronic questionnaire were used to collect data from respondents. Secondary data was gathered from internal reports, media publications and various internet search engines covering the business process management of Agrochemical firms in Kenya. The Statistical Package of Social Sciences (SPSS) was used to process and analyse the data in order to determine the relationship between the variables. Regression and correlation analysis was used to determine the joint relationship between independent and dependent variables. The study established that raw material delivery systems gave firms a competitive edge despite the poor computerization of systems among agrochemical firms in Kenya. The study established that firms that adopted information management, transport management and handling of raw materials in transit realized operational efficiency and effectiveness. The study concluded that; raw material management is critical to the overall performance of any manufacturing concern. Beside demand and other forces like competitor’s actions and general price index; raw material situation in terms of efficient management and effective planning determines the activity level, the turn-over and the ultimate profit in a given company. The study recommended that despite the poor level of computerization among agrochemical firms, managers of manufacturing firms should be responsible in implementing supply chain changes for efficiency and effectiveness of their firms.