Supply chain design practices and business performance among milk processing firms in Kenya
Abstract
Many firms who have implemented the use of various Supply Chain Design practices
have had nothing short of enjoying the fruits of their investments. This project set out to
establish the relationship between SC design practices and business performance among
milk processing firms in Kenya. It also sought to determine the SC design practices
commonly used by milk processing firms in Kenya. The research adopted a descriptive
cross-sectional survey of Milk Processing Firms in Kenya. The descriptive approach was
used to determine the various SC design practices used by Milk Processing Firms in
Kenya. A census study of 42 Milk Processing Firms was carried out. Data was collected
from the field through use of questionnaires and then analyzed using Statistical Package
for Social Scientists (SPSS) and presented in tables and figures with the results well
interpreted and discussed. The study revealed that the milk processing firms had invested
resources towards the SC and used it as a strategic weapon to beat competition. The
researcher concluded from the findings of the study that SC design helped companies to
understand where value is being created and destroyed. The regression model on the
relationship between SC Design Practices and overall firm‟s performance indicated that
SC Design Practices contributed by 30% towards the performance of the firms. Despite
this being a small percentage it should be noted that it was positive and so had positive
contribution towards business performance. However, a T-test showed no significant
relationship between the dependent variable and the independent variables. The
researcher concluded that SC Design Practices contributed positively towards a firm‟s
overall performance. The study recommends that in order to have a successful SC in
terms of total SC costs and service performance to the customer, companies need to
design their SCs such that they match the type of products they are selling with the type
of distribution channels delivering them. It also recommends that it is important to
measure performance to determine achievement of goals and alignment of objectives
with organizational strategy.
Publisher
University of Nairobi
Description
Masters