Drivers of change and supply chain strategy in the sugar industry in Kenya
Abstract
Supply chain management has become an important issue in a business organization.
Organizations are facing increasing competitive pressure with respect to prices, delivery,
quality, variety and innovation of products and services. In order to respond to these
challenges in turbulent business environment, organizations require a robust and aligned
supply chain strategy. The purpose of this research is to present the drivers of change; the
relationship between drivers of change (external uncertainties) and supply chain strategy
and finally, the challenges encountered in supply chain strategy formulation and
implementation in the sugar industry in Kenya. The data collection instrument used was a
questionnaire which was administered to a total sample of 50 senior staff in seven sugar
factories in Kenya. Sample selection was based on convenience sampling. The data was
analyzed using mean, standard deviation and correlations between independent and
dependent variables. The analysis involved statistical methods such as factor analysis and
multiple regressions. The study found that new strategic alliances influenced supply chain
strategy to a moderate extent. It also found that trading partners shared business
knowledge of core business processes with the companies to a great extent. The study
concludes that taking all other independent variables at zero, a unit increase in each of the
following variables: globalization, IT, organizational consolidation, empowered
consumer and government policies and regulations will lead to an increase in the scores
of the supply chain strategy in the sugar industry in Kenya. This infers that globalization
influences the supply chain strategy in the sugar industry in Kenya most followed by
organizational consolidation, information technology and government policies and then
empowered consumer. The study recommends that new strategic alliances should be well
set as they are the greatest influence on supply chain strategy. The study finally
recommends that government policies and regulations should be revised in order to
facilitate fair play from all stakeholders
Publisher
University of Nairobi