Lean Supply Chain Management Practices and Supply Chain Performance of Pharmaceutical Manufacturing Companies in Kenya

Abstract

This study assesses adoption of LSCM practices by pharmaceutical manufacturing firms in Kenya and their effectiveness towards organizational performance. The study assumed a cross-sectional survey design. Primary data was collected from 20 of the 43 pharmaceutical manufacturing companies listed in the directory of the Kenya Pharmaceutical society. The study adopted a descriptive inferential analysis to examine demographic information of the respondents in the study. Data collected was summarized and interpreted with the aid of Ms. Excel. The study used both Pearson’s correlation and Regression analysis to test the relationship and analyze the data using SPSS. The study established that several lean supply chain management practices were applied. Kanban, Visual Management, Five S (5s), Kaizen Strategy Planning practices were highly adopted with a strong correlation to the firm’s performance. Consequently, to improve organizational performance, the study recommends that pharmaceutical organizations should adopt lean supply chain management practices.