Outsourcing And Supply Performance Among Mobile Telephone Service Providers In Kenya

Abstract

This study aimed at estabhshing the relattonship between outsourcmg and supply chain performance among mobile phone service provtdcrs in Kenya Supply chain pcrfonnance was measured by use of four variables namely Operation System Responsiveness, Logistic Process Responsiveness, Supplier Network Responsiveness and Competitive Advantage. Each of the four mdependent variables was captured as the average response to the factors identified as determining the performance of each of the variables. According to the regression analysis, Supplier Network Responsiveness had the greatest impact on outsourcing having a coefficient of 0.61273. The Operating System Responsiveness had the greatest negative effect on how much is outsourced with a coefficient of -0.54204. The regression was significant and the variation in Operation System Responsiveness, Logistic Process Responsiveness, Suppli er Network Responsiveness and Competitive Advantage strongly explained the variation in Outsourcing. It was found from th~ study that supply chain system responds rapidly to changes in product volume demanded by customers and to changes in product mix demanded by customers, it effectively expedites emergency customer orders, rapidly reconfigures equipment to address demand changes, rapidly changes manufacturing processes to address demand changes and rapidly adjusts capacity to address demand changes. The s upply chains respond rapidly to unexpected cbanges in demand, warehouse capacities rapidly adjust to changes in demand, transportation carriers are rapidly varied, the supply chains also rapidly accommodate special or non-routine customer requests and shipment deliveries are effectively done However, the findin gs are limited to the mobile companies in Kenya for the time that the research was done Further, the research heavily depended on qualitative data wbich might have been highly biased towards the opinion of the respondents.