Supply Chain Design Decisions and Operational Performance of Large Manufacturing Firms in Kenya

Abstract

The study sought to examine supply chain design decisions and operational performance of large manufacturing firms in Kenya. The study was guided by three specific objectives which were to establish the extent to which supply chain design decisions are implemented by large manufacturing firms in Kenya; to determine the relationship between supply chain design decisions and operational performance of large manufacturing firms in Kenya and to find out the challenges faced in the implementation of supply chain design decisions by large manufacturing firms in Kenya. The study used descriptive cross-sectional design. The study targeted 455 large manufacturing firms in Kenya and a sample of 98 was obtained. Primary data was collected using a questionnaire. Data was analysed using descriptive statistics with the use of Statistical Package for Social Sciences (SPSS). The study found out which supply chain design decisions are implemented by large manufacturing firms in Kenya. All the variables were found to have a positive influence on performance of large manufacturing firms in Kenya with customer relationship having the highest effect followed by inventory control, then flexibility, product design and finally postponement. The study found that the firms face challenges such as lack of proper coordination within the supply chains and poor integration of decisions along the supply chains. This study recommends that manufacturing firms should strengthen their supply chain management by putting greater effort to the implementation of some key best practices. This should be done by keeping all practices updated. Monitoring and further improvements for specific supply chain decisions that showed a moderate extent of application should be done to ensure full adoption and appreciation of these practices. The study involved a large sample size and it was extremely tedious and time consuming. The study also faced financial limitations. The study recommends that future studies can be conducted on the same topic that is to examine supply chain design decisions and operational performance but they should use different sectors other than manufacturing which was used in this study to achieve possible generalization of the results.