Contributions of Supply Chain Management Practices on the Performance of Steel Manufacturing Companies in Kenya

Abstract

The main purpose of this study was to examine the contributions of supply chain management practices on performance of Steel Manufacturing Companies in Kenya which are the key contributors to the economic development of the country. The specific objective of the study were; to determine the contributions of supply chain collaboration practice on performance of steel manufacturing Companies in Kenya; to examine the contributions of green supply chain management practice on performance of steel manufacturing Companies in Kenya; to investigate the contributions of information sharing practice on performance of Steel Manufacturing Companies in Kenya; to find out to what extend does customer relationship management practice contributes to performance of steel Manufacturing Companies in Kenya and lastly provide recommendations on how to improve supply chain performance of Steel Manufacturing Companies in Kenya. The metrics for measuring the company’s performance were the quality of product and customer satisfaction. The descriptive research design was used in the formulation of knowledge on the contributions of supply chain management practices on performance of Steel manufacturing Companies in Kenya and provided solutions to areas that needed improvement. Structured questionnaires and oral interviews research techniques were used to get primary data from employees in production department, marketing department, Information Technology department and Supply chain department while scheduled interviews was used for firm’s procurement managers. Analytical research method was used to analyze secondary data and ex-post facto research design was used to report things the way they are. Both quantitative and qualitative research techniques were used during data presentation using inferential statistics to draw conclusions from the nominal measurement scale. Purposive sampling technique was used to identify and select eligible participants for the study sampling since it allowed the researcher to choose subjects who are in the best position to provide information required. The null hypothesis formulated was that supply chain management practices contribute to performance of steel manufacturing companies in Kenya. The sample size was determined using Cochran sampling frame for large population. The correlation analysis was carried out between the variables of the study using Pearson correlation coefficient and the null hypothesis was tested by use of F- ratio using a two way Fisher’s Analysis of Variance [ANOVA] on assumption of the homogeneity of the variance of the sample that is normally distributed at 95% confidence interval. The study found that supply chain management practices that include; supply chain collaboration practice, Green supply chain management practice, information sharing practice and Customer relationship management practice statistically significantly predicted the performance of Steel manufacturing companies in Kenya. The study recommends that the Steel manufacturing companies in Kenya should incorporate the supply chain management practices in their business operations to enhance their supply chain performance.