Effect of Supply Chain Enhancement Practices on Operational Efficiency of Bunkering Firms of East Africa Seaports Along Indian Ocean

Abstract

This research aimed to demonstrate that bunkering companies in East African Indian Ocean ports benefited from supply chain efficiency measures. The study's foundations were the Theory of Constraints (TOC) and the theory of interested parties. The study used a descriptive cross-sectional survey with a sample size of 168 bunkering businesses. It was determined by use of a questionnaire. Participants were managers in the workplace. There was use of both descriptive and inferential statistics. SPSS was used to analyze the data collected in this way. Using regression analysis, the researcher was able to determine the connection between the variables. The research managed a 70.2% response rate which was excellent and deemed fit for the study. Reliability and validity tests found out that the constructs were reliable and the data collection instrument was valid. The data was submitted to a variety of diagnostic tests prior to the analysis with the purpose of enabling subsequent analyses. Test for normality were carried out using Skewness and Kurtosis, while Durbin-Watson Statistic was employed to assist in evaluating Autocorrelation and Test for Variance Inflation Factors were used to evaluate multicollinearity (VIFs). The data was found to be normally distributed. There was also no autocorrelation for the study variables. Furthermore, the study variables were not multicollinear. Strategic information exchange, information technology, effective inventory management, and a competent supply chain were all found to have major effects on operational efficiency. Specifically, the correlation was positive, with more supply chain enhancement techniques (such strategic information exchange, supply chain competency, IT, and inventory management) leading to higher operational efficiency. 89.5% of the variation in operational efficiency may be attributed to supply chain management strategies. As much as the model tried, it just couldn't account for 10.5% of the entire variance in operational efficiency. Policymakers in the marine industry, and the bunkering industry in particular, are urged to take the study's conclusions into consideration. The characteristics analyzed in this research account for 89.5% of the operational efficiency. A total of 10.5% of the variation in productivity in operations could not be explained by the factors. This study suggests conducting additional research to determine the other elements.