Global Supply Chain Management Practices and Performance of Toyota Kenya Limited

Abstract

Globally, the manufacturing sector is growing rapidly in India and China and has shrunk in most advanced economies. The growth will require several changes, which include significant increase in productivity and quality at the plant levels, pursuit of worldwide competitive manufacturing strategies and operations and successful integration into the global supply chains. The study sought to establish the effects of the adopted global supply chain practices on the performance of Toyota Kenya Limited. The objectives of the study included establishing the global supply chain management practices adopted by Toyota Kenya Limited and determining the relationship between global supply chain management practices and organizational performance of Toyota Kenya limited. The study adopted a case study descriptive research design. The study had 71 respondents. Since the target population was small, the study would incorporate all staff of Supply chain departments, hence a census study will be conducted. The study collected both primary and secondary data. Pearson’s correlation test was conducted to identify the correlation between the organisational performance and the adopted supply chain practices. The study found out that Toyota Kenya Limited adopted strategic sourcing to the supply chain network design affecting the organizational performance of the company and work environment and the organizational culture affected the organizational performance of the company. The study also established that the company purchases quality products to a greater extent. The study found out that practicing supply chain management has an effect on the performance of the organization. The study found out that the company’s supply chain network design contains an excellent compositional identification of suppliers, manufactures and distributors. The study concludes that adopting global supply chain practices affects the performance of Toyota Kenya Limited. The study further concludes that Toyota Kenya Limited adopted strategic sourcing to the supply chain network design affecting its organizational performance, work environment and the organizational culture. The study also concluded that the company purchases quality products to a greater extent. the study found out that the company’s supply chain network design contains an excellent compositional identification of suppliers, manufactures and distributors. The study further concludes that the purchasing manager monitors the company’s environment and shares relevant information with suppliers and colleagues. The study recommended that the management to continuously improve their supply chain management practices benchmark the same and ensure that the practices remain relevant. Toyota Kenya limited can save on financing costs in addition to achieving competitive advantage over the competitors and greatly improved performance