Supply Chain Management Practices and Performance of Tea Factories in Kenya
Abstract
Tea factories play a crucial role in adding value to agricultural products, contributing
significantly to the industry's high Gross Domestic Product ranking. The primary focus of
this study revolves around examining the productivity of Kenyan tea producers and their
strategies for SCM. The objective is to understand how the integration of the SC,
outsourcing, supplier relationship management, and information exchange influences the
efficiency of Kenyan tea producers. To investigate this, the research adopted a descriptive
approach, specifically targeting the 54 tea enterprises governed by the Kenya Tea
Development Agency. A census approach was employed due to the subdivided nature of
the population. Data gathering involved both primary and secondary sources. Semistructured
questionnaires were utilized for primary data collection, while secondary data
was gathered from publications and annual reports from KTDA. The semi-structured
questionnaires facilitated the collection of both quantitative and qualitative data, which
were analyzed using diverse techniques. Thematic analysis was applied to interpret
qualitative data, presenting findings in prose form. For quantitative data, both descriptive
and inferential statistics, including regression analysis, were employed with the support
of SPSS version 25. Descriptive statistics encompassed frequency distribution, mean,
percentages, and standard deviation. The study findings showcased a positive and
significant relationship among Supplier Relationship Management (SRM), Outsourcing
(OTS), Supply Chain Integration (SCI), Information Sharing (IS), and the Performance of
Tea Factories. To compete effectively in both local and global markets, tea factories
should establish effective supply chain management systems. Building mutually
beneficial relationships with suppliers is crucial, as it enables successful competition, cost
reduction, free flow of information, flexibility in handling change, and wise resource
consumption. The strategy of process-specific outsourcing significantly enhances
organizational performance. For effective integration, tea factory managers should
prioritize information and operational integration to improve supply chain outcomes.
Relationship integration, grounded in long-term commitments and trust, requires careful
handling. The type of information shared should be assessed, and associated risks
outlined. Information sharing should be based on principles that promote trust and
confidentiality, with management being cautious not to disclose details that may
jeopardize the firm's competitive gain.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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