Supply Chain Management Practices and Competitive Advantage of Supermarkets in Nairobi County

Abstract

The study sought to investigate the supply chain management practices and competitive advantage of supermarkets in Nairobi County. Specifically the study sought to establish the supply chain management practices implemented by supermarkets in Nairobi County, to determine the relationship between supply chain management practices and competitive advantage of supermarkets in Nairobi County and to determine the challenges of implementing supply chain management practices and competitive advantage of supermarkets in Nairobi County. The study was anchored on resource dependent theory, systems theory and resource based view theory. It utilized an engaging overview plan with an objective populace of 73 grocery stores working. The examination utilized essential information that was gathered through a self-regulated survey that comprised of both open and shut finished inquiries. The information was examined utilizing engaging measurements where mean and standard deviation were utilized and relapse investigation which was instrumental in showing whether the free factors SCM rehearses significantly predicted the dependent variable organization performance. The findings shows that the supply chain management practices adopted by supermarkets in Nairobi County are consideration for quality as number one during supplier selection, regularly having joint forums for solving disputes with their suppliers and the active involvement of the suppliers in all their supply chain systems as well as development of new products. Further the findings show that the supermarket use Radio Frequency Identification System of technology in reading and collecting data and that the firms include key suppliers in their planning and goal setting activities. Therelationship between supply chain management practices and competitive advantage of supermarkets in Nairobi County was very strong therefore the researcher concluded that strategic supplier management, partnership management, information sharing, quality of information sharing, postponement, outsourcing, lean practices have strongly affected the competitive advantage of the supermarkets in Nairobi County. The challenges affecting implementation of supply chain management practices and competitive advantage of supermarkets in Nairobi County were failure to invest in modern technologies and sourcing competition due to globalization, employees’ resistance to change, unreliable suppliers, lack of capital investment, and lack of commitment by top management and hiring of incompetent staff to carry out procurement processes.Therefore the study recommends that all supermarkets either owned by Kenyans or Foreigners should try to adopt the best SCM practices for instance partnership management in improving their competitive advantage. The SCM practices exercised in a supermarket affects all the supply chain activities. To improve supply chains employees should be involved in decision making to align the supply activities and motivation level. Recommendations were that the management should adopt technology and be improved in supply chain management activities to help improve supply chain performance. The study made recommendation that leadership should be involved in quality supply to help satisfy customers than driving them away through delays. Recommendations were that supply chain management team should adopt better ordering processes; leadership should satisfy customers through convenience of supply activities and just in time deliveries in supermarkets to competitive advantage.