Supply Chain Management Practices and Operational Performance: a Case of Rural Electrification Authority

Abstract

The Rural Electrification Authority (REA) has been in operation for the last 10 years and it has been operating on a target bases. Operational performance has been key to REA management so as to meet its goals. The achievement of its key goal can only be realized when management, Supply Chain (SC) parties are working together for the common goal. Supply Chain Management Practices (SCMP) being an old concept it is key in achievement and improvement of the operational performance. The basic objectives of this study were: to explore on the level of SCMP in REA, to study the relationship between SCMP and operational performance in REA and challenges of implementing SCMP in REA. The key practices were considered, supplier relationship management, customer relationship management, outsourcing and information sharing. These practices were used as independent variables while operational performance was used as a dependent variable. The research was a descriptive case study for REA. The population was from the procurement and stores department. A sample size of 15 employees was taken and an interview guide was used as a research tool for the collection of data and secondary data was collected. Data was analyzed using content analysis and presented into textual content. The result indicated that SCMP listed above were all implemented and also in additional of other practices such as supplier contract management, manufacturer factory inspection and supplier appraisal. All these practices had positive impact on the operational performance of REA in terms of quality, cost and timely delivery. The study noted the following challenges lack of sufficient fund for the projects, technological incompatibility, scarcity of local manufactures, accessing remote areas for the off grid REA projects and centralization of the procurement and these create a new area of research.