Sources of Supply Market Intelligence in Strategic Sourcing Among Supermarkets in Kenya:a Case Study of Tuskys Supermarket

Abstract

The norm of business and its environment is rapidly changing. Today, a number of factors including internationalization, artificial intelligence, diminishing resources, decreasing markets, increased substitutes, ever advancing technology and increased consumer awareness are dictating competitive advantage. Literary every dimension of thoughts is put into practice and as result all manner of imaginations are converted into business ideas. All factors these when combined produce a market force that stretched the competitive advantage to the next higher level. A level that many businesses must struggle to attain. Consequently, then many firms are now capitalizing on a number of smart services and practice. While other are widening by use of collaborations and diversification, some are aligning themselves towards supply market intelligence which in is turn used to enable strategic sourcing for effectiveness and efficiency. To obtain supply market intelligence, firms must invest in systems that detect and investigate random needs. These systems are known as supply market intelligence sources and they include peer companies, advisory programs and request of information, supplier interview, supplier relationship management and performance reporting among others. The use of such sources enhances the ability to identify the best supplier partner who can actually help roll out the competitive perspectives of cost, quality, schedule and timing, risk management and effectiveness and efficiency. The assumption herein is that if a source or a pool of sources can be able to create an environment from which the competitive perspectives can be translated into the strategic sourcing then competitive advantage can easy be attained. This study is based on such understanding. It investigates on the supply market intelligence sources used in strategic sourcing by supermarkets in Kenya. The study takes a case study research design on Tuskys Supermarket Limited. Using content analysis, the study established that peer companies, advisory programs, request of information, supplier interview, supplier relationship management and performance reporting sources are used to obtain supply market intelligence. The study further identifies substantive influence of the sources on the strategic sourcing process and outcome. Findings also indicated a number of challenges associated with the sources. However, most of the challenges are categorized as controllable. The study concludes that supply market intelligence has high influence on strategic sources. The study has two limitations. The first one is on the use of few supply market intelligence sources when there exists a pool from which most supermarkets apply. The second limitation is on methodology. The study utilized qualitative analysis rather than a quantitative approach: Quantitative approach can aid in establishing a quantified influence of the sources on strategic sourcing. The study suggests for further research using quantitative approach and involving all sources of supply market intelligence.