Influence Of The Implementation Of Supply Chain Strategy On The Performance Of Kenya Tea Development Agency Limited

Abstract

As markets become global, competition has intensified and so have the challenges related to seeing to it that products and services are delivered at the right place, at the right time and competitively so. Effective Supply Chain Management (SCM) has been viewed as the most popular strategy for securing a competitive advantage and improving organizational performance. This research sought to establish if the implementation of a SC strategy had influenced the performance of Kenya Tea Development Agency (KTDA), using descriptive research design. The study targeted 12 select participants of the KTDA supply chain,corresponding to the four basic activities or processes in a SC- Planning, Sourcing, Making and Delivering/Returning, based on the Supply Chain Council’s Operations Reference (SCOR) model, out of whom, 11 participated in the study. The study relied on both secondary and primary data. Secondary data was obtained from KTDA’s annual reports published between 2012 and 2015, while the primary data was collected using the interview technique and instrumented using an interview guide. In analysing the quantitative data, the study used descriptive statistics with the findings presented charts and tabular form. Content analysis was utilized for analysing the qualitative data where a thematic framework was developed that captured the key themes, concepts, and issues emerging from the openended questions. The study established that KTDA was implementing an operational excellence SC strategy using a lean supply chain approach, strategic sourcing and various time based strategies, all aimed at lowering the costs of operation and enhancing the efficiency of operations which would in turn enable the firm meet its customer’s needs profitably, thereby enhancing both the operational and financial performance of the firm. The study established that the implementation of a SC strategy had enhanced the performance of KTDA throughways such as reduction of operating costs, injection of efficiency in the SC and ensuring the consistent production of quality teas, which in turn assures repeat business. The study recommends that the management of KTDA should continually finds ways to effectively implement the SC strategy as the benefits yielded have the potential to enhance both the financial and operational performance of the firm. The study further recommended that policy makers should continually evaluate the success of and/or the challenges of the KTDA model with a view to ensuring that the policy and regulatory framework laid down is supportive of strategic accomplishment, not only for KTDA but also for other industry players, seeing as the implementation of a SC strategy is inherently inter-organizational. This will serve to enhance the earnings from the trade of tea for both the small scale farmer as well as the economy at large.