Supply Chain Management Practices and Performance of Three to Five Star Hotels in Nairobi

Abstract

The aim of this research was to ascertain the influence of Supply Chain Management Practices on Operational Performance of 3-Star to 5-Star Hotels in Nairobi, Kenya. The study was steered by two objectives; determining the extent of adoption of Supply Chain Management Practices and to investigate the correlation amongst Supply Chain Management Practices and Operational Performance. Descriptive design was the methodology employed. Every Three-Star to Five-Star Hotels in Nairobi which are 36 constituted the population and thus census was deployed. Primary data was used which was acquired using questionnaires sent through electronic mail. The respondents included supply chain managers, operations managers and procurement officers and 31 questionnaires were returned translating to 86% which was deemed sufficient. The findings indicate that Strategic Purchasing, Lean Management, Supply Chain Information System and Customer Relationship Management were adopted to a large extent while Outsourcing was adopted to a Moderate extent. The findings also established that SCM Practices have an affirmative and relevant effect on Operational performance. Supply Chain Management Practices (Strategic Purchasing, Lean Management, Supply Chain Information System and Customer Relationship Management) were found to significantly influence cost. Quality and dependability to a large extent except Outsourcing. The paper recommends that Three-Star to Five-Star Hotels should fully adopt those practices which are moderately adopted like Outsourcing and that other firms and industry should adopt SCM Practices to enhance their Operational performance. The study did not realize 100% response rate and did not also establish the factors that drive and milestones faced by Supply Chain Management practice implementation. The researcher suggests that this study should be replicated in other sectors like manufacturing or Public sector to see if the findings will be conclusive.