Business Analytics and Supply Chain Performance of Oil Marketing Companies in Kenya

Abstract

The environment is changing at a fast pace and this has forced firms to look for ways to cope with this dynamic environment. Business analytics has been considered as a way that firms can adopt to manage their supply chain more efficiently whilst addressing their customer needs. The objectives of this study were to: determine business analytics utilized by OMCs in Kenya, establish the link between business analytics and supply chain performance of OMCs in Kenya and highlight the challenges OMCs in Kenya face as they implement business analytics. The study used a descriptive research design that was considered appropriate in giving detailed information involving the respondents and OMCs. This research design was selected because it was small and accessible. The target population included 36 OMCs registered by Pipecor, 2016. Data was gathered using questionnaires that were administered in person. Descriptive statistics and regression analysis was used to analyse the data. Data was interpreted using frequencies, percentages, mean and standard deviation. OMCs utilized ERP, data mining, data warehousing and customer relationship management to a great extent. These systems are largely accepted by OMCs in making predictions and decision making. The key impediments towards successful implementation of BA systems include deficient funds, non-existence of a standard operating procedure, lack of or insufficient training, limited technical support and employee sensitization. Coefficient of determination was 56.7% implying that the equation implemented for regression was reliable and appropriate. ERP and data mining have a positive connection. ERP, data mining and data warehousing were statistically significant. The study recommends that OMCs should invest more in BA systems in order to enhance supply chain performance; sponsor their staff in regular training programs to increase their knowledge regarding BA systems and the energy regulatory commission should have policies that provide a level playing ground for OMCs to invest in advanced technology in order to promote fair competition. Time and other resource constraints limited the researcher to only focus on the oil sector in Kenya. A comparative research covering at least two industries could have enhanced the quality of the findings leading to a more generalizable conclusion. It is therefore prudent for future researchers to incorporate the findings of this research in a different sector and compare the findings.