Enterprise Resource Planning And Supply Chain Performance Of Sugar Manufacturing Companies In Kenya

Abstract

Sugar manufacturing companies in Kenya are currently struggling with operational challenges with most of them operating below capacity. The sugar sector is driven by various forces and the operating environment is prone to political interference due to the existence of cartels. The sugar manufacturing companies therefore needs to develop unique competencies and capabilities to ensure provision of excellent customer services along the sugar sector value chain. In the quest of improving both operational and supply chain performance, most of the sugar manufacturing companies are enhancing the power of technological advancement and institutionalizing ERP systems within their operations and business partners. The objective of this study was elaborate the relationship between ERP and supply chain performance of sugar manufacturing companies in Kenya. The study adopted a survey and descriptive design research methodology. A descriptive study was adopted to solicit attitude or views of sugar companies’ managers who apply ERP towards supply chain operations, decision making, and supply chain performance measurement and evaluation. A quantitative analysis was undertaken on the data collected using the SPSS software for statistical packages. The analysis results was displayed as frequency tables, means, and standard deviations.SPSS analysis was performed to create histograms, frequency distributions, and other measures. From the research findings, it was established that indeed there exists a significant relationship between ERP and the performance of the supply chain of the sugar manufacturing companies in Kenya. The researcher makes a number of recommendations as detailed in the findings; the need for continuous improvement and ensuring enterprise wide coordination of all the ERP systems within the companies in order to realize full ERP benefits. Further the study recommends an in-depth investigation and analysis of the supply chain performance of the entire value chain from unprocessed material suppliers (out growers), sugar processors and distributors for effective operation and control. Finally, major players in ERP systems applications should also enhance the flexibility and the adaptability of high end ERP systems for sugar manufacturing companies. This include systems integration, instituting cost effective hands on user trainings and tailor making of ERP modules to address local industry requirements.