Competitive sourcing initiatives and supply chain performance of supermarkets in Nairobi county, Kenya
Abstract
The objectives of the study were to determine the competitive sourcing initiatives
implemented by the supermarkets in Nairobi County, Kenya; and to establish the
relationship between competitive sourcing initiatives and supply chain performance as
applied by the supermarkets in Nairobi, Kenya. This study adopted descriptive research
design. The target population of study consisted of 102 supermarkets operating in
Nairobi. The study adopted stratified and simple random sampling methods to choose the
study sample size where a sample of 30% was taken to give a sample size of 31
supermarkets operating in Nairobi. This study used structured questionnaires to collect
primary data. The questionnaires were administered through drop and pick later method.
The respondents included, the supply chain manager, purchasing manager, operations
manager or head of purchasing in the supermarkets in Nairobi, Kenya. Data collected was
analyzed using both descriptive which included frequency tables, percentages, mean
scores and standard deviation and inferential statistics which included regression analysis
and ANOVA. The analysis was aided by statistical software. The analyzed data was
presented using tables, graphs and bar charts. The results found out that the supermarket
practiced transparency in supplier selection to a very great extent and that the tendering
process exhibited honesty and accountability. However, factors such as high competition,
lack of enough finances, lack of effective communication and lack of knowledge when it
comes to implementation of sourcing practices affected the implementation of
competitive sourcing initiatives to a moderate extent. The study concludes that there was
a positive and significant relationship between supply chain performance and competitive
sourcing initiatives. The study recommends that there is need for more training to the
employees on the best competitive sourcing practices and the best achieved so as to
encourage the management in supermarkets to adopt such practices. There is also need to
adopt the appropriate technologies and ensure effective communication and cooperation
among the supply from all parties involved