Effect of Supply Chain Management Practices on Performance of Barclays Bank of Kenya Limited

Abstract

Increased competition in today‟s global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced businesses to invest in and focus attention on their supply chains.The use of effective supplychain management(SCM) practices has become a potentially valuable way of securing competitive advantage and improving organizational performance.The objective of this study is to establish the effect of supply chain management practices on performance of Barclays Bank Kenya Limited.The research is a case study as well as a causal research which was carried out to identify the extent and nature of cause and effect relationship between the variables. Primary data was collected by use of a questionnaire. Data analysis was by descriptive statistics and inferential analysis. From The results, the study depicted that supply chain management practices positively influence performance of the organization. Order fulfilment practices had the greatest effect with a mean of 2.27 while just in time had the lowest mean of 1.55.Various performance indicators were also cited, all of them giving a positive mean of between 1.53 to 2.12.In conclusion, supply chain management practices affect performance of the organization and that most heads of departments are aware of supply chain management practices and satisfied to a great extent with the banks performance.This study recommends that proper measures be put for each of the supply chain management practice that match up with those of performance of commercial banks. The management must establish metrics in supply chain and show a clear link on all performance indicators.