Supply Chain Integration Strategies and Operational Performance of the Treasury in Kenya

Abstract

Supply chain encompasses the facilities where raw materials, intermediate products and finished goods are acquired, transformed, stored and sold. Supply chain integration practices are considered a powerful weapon to gain competitive advantages and linking performance measurement systems to supply chain integration practices can lead to increased success of supply chain initiatives. This study sought to established supply chain integration practices by narrowing the contextual scope to the national Treasury in Kenya. The study adopted a descriptive research design to identify supply chain integration practices and operational performance measures. The sample population of this study comprised 121 employees of the National Treasury as at August, 2015. From the findings supply chain integration practices most practiced at the Treasury in Kenya were identified, amongst these efficient customer response, customer relationship management practices, vendor managed inventory practices, distribution requirement planning, and enterprise resource planning practices were highly ranked. Supply chain integration practices leads to operational effectiveness, most of the respondents strongly agreed. The study concludes that performance at the Treasury in Kenya has improved because the vendors have access to customer’s inventory data to ensure efficient management, employment of efficient consumer response practice and promote customer relationship and management practices. The study recommends that the various government departments in Kenya adopts the supply chain integration practices extensively as it has established the positive effect in both operational and business performance of an organization and that good relationships with supply chain members including customers are needed for enhanced organizational performance.