Lead Time and Supply Chain Performance in the Motor Industry in Nairobi

Abstract

The study focused on lead time (fixed lead time, pre-processing lead time, processing lead time and post processing lead time) and supply chain performance in the motor industry in Nairobi. The first objective of the study sought to determine the factors influencing lead time and the second objective sought to establish the relationship between lead time and supply chain performance in the motor industry in Nairobi. The study employed a descriptive research design on a population of 35 registered motor companies in Nairobi who were members of Kenya Motor Industry Association (KMIA) by the year 2017.The study conducted a census of the 35 motor companies instead of adopting a sampling methodology. The respondents for the study were operations managers, logistic managers, procurement officers and finance officers working in the motor companies. The data used for analysis was primary data collected via the use of questionnaires administered through drop and pick later method. Descriptive statistics (mean, standard deviation and frequencies) and inferential statistics (regression and correlation analysis) were used to perform data analysis. Data was presented in form of tables. A multiple linear regression analysis model was used to test and link the variables. The study established that fixed processing lead time had a positive but insignificant relationship with supply chain performance because the p-value was greater than 0.05. On the other hand, pre-processing lead time, processing lead time and post processing lead time, were found to have a significant and positive relationship with supply chain performance this is because their p-values were less than 0.05. The study concluded that motor companies that had good lead time management significantly impacted on supply chain performance in their companies. The recommendations were that motor companies need to promise a constant lead time to all customers, regardless of the characteristics of the order and the current status of the system.