Supply Chain Risk Management and Competitiveness of Automotive Tyre Retailers in Nairobi City County

Abstract

The primary goal of the study was to look into the role of supply chain risk management practices on competitiveness in automotive tyre retailers in Nairobi City County. Specifically, to establish the supply chain risk management practices used by tyre retailers in NCC and to establish the influence of supply chain risk management practices on competitiveness of automotive tyre retailers in NCC. Survey research design was adopted by this study. The study population involved of all the automotive tyre retailers operating within the county where it focused of 50 respondents from two major locations in Nairobi where most tyre retailers operate from, and these included: Kirinyaga road and Industrial area. The instrument used to collect primary data from the respondents was a questionnaire. Objective one was analyzed through descriptive statistics and objective two was analyzed by use of regression model. The study established that the supply chain risk management practices used by tyre firms operating in Nairobi City County were supply risk management, demand risk management, employee risk management and information risk management. Production risk management was a non-issue to the retailers since they were not involved in manufacturing. The study further discovered that demand and information risk management had an influence on the competitiveness of automotive Tyre retailers in Nairobi City County. The study rejected the null hypothesis that supply chain risk management practices have no effect on competitiveness of a firm. The study therefore recommends that the tyre retail firms should look up on the ways to mitigate risks associated with supply and employees. The study was confined on the supply chain risk management practices applicable to automotive tyre retailer operating in Nairobi City County. The study further suggests that a national survey should be done on supply chain risk management and competitiveness of automotive tyre retailers in order to cover the national geographical diversity.