Supply chain management challenges and supply chain performance of humanitarian organizations in Nairobi, Kenya
Abstract
In a disaster struck region, each supply chain has to be built up from the very
beginning, and is usually very different to previous ones. In addition, aid workers‟
knowledge and skills are of utmost importance to guaranteeing a quick response
(Tomasini et al, 2009). Due to the fact that relief operations require a large number of
people and are often characterised by a high level of uncertainty, the allocation of
skilled workers and of knowledge about former humanitarian operations is of utmost
importance (Gustavsson, 2003). According to Kenya Red Cross (2014) cases of
disasters, both natural and man-made in Kenya have been on the increase and has left
devastating effects to the human population. The current study sought to investigate
SCM challenges and their effect on the SC performance of humanitarian aid
organizations in Nairobi, Kenya. This study took a descriptive cross-sectional survey
research design. The study targeted all the 708 humanitarian organizations operating
within Nairobi County. The study used stratified sampling technique in coming up
with the study sample of 142 humanitarian organizations. The study used
questionnaires as the instrument of data collection. Quantitative data was analysed
through descriptive statistics and correlation analysis SPSS V 18.0 while qualitative
data was analysed through content analysis. From the findings, the study concludes
that there are numerous SCM challenges in the humanitarian sector in Kenya. The SCM
challenges highly contributed to supply chain inefficiency in delivery of the relief supplies
and negatively affected the operations of the humanitarian organizations. The Kenyan
humanitarian sector was faced by multiple SCM challenges which compromised their
efficiency in supply chain. The SCM challenges includes; high turnover, uncertainty
in terms of supplies, poor management of relationships with the partners in the supply
chains, poor alliance management practices, lack of coordination, uncertainty in terms
of assessment, Poor infrastructure, lack of open and honest collaboration between the
parties in supply chain. The supply chain management challenges experienced by the
humanitarian sector negatively impacted on the SC performance of humanitarian
organizations in Nairobi, Kenya. The SCM challenges resulted in SC cost increment,
deterred HO to achieve timeliness in humanitarian aid delivery, lead to failure to
deliver relevant humanitarian aid materials, and lack of reliability and efficiency in
the humanitarian SC. There is a positive relationship between SCM challenges and
SC performance of humanitarian organizations in Nairobi, Kenya. The financial
resources is the most significant SCM challenges facing humanitarian organizations in
Nairobi, followed by disaster prediction, uncertainty in terms of demand, employee
turnover, planning, coordination, uncertainty in terms of supplies, uncertainty in terms
of assessment, infrastructure, quantity of materials to be transported and local customs
and habits in the relief area respectively. The study recommends that the management
of humanitarian organizations should allocate adequate budgetary resources towards
human resource training to increase employee competence in handling SCM
challenges as well as increase their retention rates. The management of humanitarian
organizations should invest in an integrated supply chain management system for
monitoring and controlling their supply chain and addressing SCM challenges. The
management of humanitarian organizations should conduct a research on the different
relief areas they are operating in to ensure that the SCM initiatives being implemented
are effective in addressing the specific SCM challenges towards enhancing their SC
performance.
Publisher
University of Nairobi