The impact of supply chain management practices on performance: the case of Safaricom Limited
Abstract
The purpose of the study was to find the impact of Safaricoms supply chain management
practices on the company’s performance in the Kenya telecommunication industry. The
research design used was a case study and the research method was mainly content
analysis. The research interviewed supply chain partners that form part of Safaricoms
supply chain. A total of 74 questionnaires were distributed of which sixty responses were
completed and returned giving a response rate of 81.1%.
The literature reviewed the links between supply chain management and operational
performance in the wireless telecommunication industry. Supply chain management
needs to address information management, trade offs, cash flows, inventory, distribution
network configuration and distribution strategies to be able to establish a link with
operational performance. Critical activities in a supply chain management function and
objectives of a supply chain function have been highlighted to guide the researcher to
look for these activities while gathering information for the study. The literature also
reviewed the issue of how to measure the performance of a supply chain management
function. Emerging practices in supply chain management in selected countries is
presented.
The findings of the study were that it was observed that there exists very strong supply
chain management practices in Safaricom and there was evidence of superior operational performance within the supply chain. The performance dimension of flexibility, service,
cost, quality as well as innovation are well represented in the supply chain. The
performance dimensions contribute immensely towards a good supply chain management practice in the wireless telecommunication industry and specifically within Safaricom Limited and its partners.
While the findings give the company a good standing in terms of superior operational
performance, it should be noted that many supply chain partners suggested that more
needs to be done to performance manage the chain for sustainable operational
performance. It was also observed that while there is seamless organization early in the
supply chain i.e. between Equipment suppliers, DHL and Safaricom, there is relatively
lesser, although still impressive, seamless organization down the supply chain and
especially between managing the large number of Safaricom authorized dealers and
Safaricom limited.
Publisher
University of Nairobi School Of Business, University Of Nairobi