Effect of Government Regulations on Supply Chain Performance of Oil Marketing Companies in Kenya

Abstract

Supply chain management as the delivery of enhanced customer and economic value through synchronized management of the flow of physical goods and associated information from sourcing to consumption, though, achieving the real potential of supply chain management require integration not only of these entities within the organization, but also of the external partners. The purpose of this research project was to provide a qualitative and quantitative analysis of the effect of government regulations on the supply chain performance of oil marketing companies in Kenya. The study is based on a survey of 50 Kenyan oil marketing firms with respondents mainly from supply and procurement departments. The findings clearly indicate that government regulations affect the supply chain performance of oil marketing companies in Kenya. The study recommends that oil marketing firms should investment in supply chain management strategies. The study also suggests that ERC should recognize macroeconomic factors affecting oil firms when formulating oil prices. The study provides an insight into understanding the SCM practices, the benefits of effective SCM and the hindering factors.