Supply Chain Innovation and Forecasting Accuracy in Cement Manufacturing Firms in Kenya

Abstract

Supply chain innovation has become the basis upon which organizations seek to gain advantage in the increasingly competitive environment. Based on the management dilemma facing the cement manufacturing firms in Kenya, as well as the gaps in knowledge from the foregoing studies, there was need for a research on the impact of supply chain innovation on forecast accuracy in the cement manufacturing firms in Kenya. As a result, the current study is guided by the general question: What is the impact of supply chain innovation on forecasting accuracy in the Local cement manufacturing companies? The questions guiding the study were: which are the supply chain innovation approaches adopted by the cement producing firms in Kenya? What is the impact of supply chain innovation on forecasting accuracy in the Kenya’s cement producing firms in Kenya? Descriptive design was used; the study population constituted the 8 Kenya’s cement manufacturing firms as at December 2017. Semi-Structured questionnaires were used to collect primary data. Data analysis was done using descriptive statistic and inferential analysis and presented in form of charts and Tables. Data analysis entailed calculation of the mean and standard deviation for the scores. Regression analysis was done and significance of the beta factors interpreted at 5% level of significance. The study determined that if change independent variables were each zero, demand forecasting can be 1.298. However, a unit change in vendor managers inventory would lead to increase in business performance by a factor of 0.237, unit change in collaborative planning can to an boost in demand forecasting by a 0.231 and a unit change in cross docking through supply chain innovation can lead to growth in demand forecasting by of 0.239. The study was limited to three independent variables. Recommendations include provision of support from management in terms of financial support to the innovations as well as focused staff training.