Lead Time Management Practice and Supply Chain Leverage of Sugar Manufacturing Firms in Kenya

Abstract

Purpose: The purpose of this study was to determine the effect of lead time management practice on supply chain leverage of sugar manufacturing firms in Kenya Methodology: A census survey sampling was adopted and conducted on all the 15 sugar manufacturing firms in Kenya forming the unit of analysis. A sample size of 241 respondents comprising of Procurement officers, Finance officers, Production managers and senior managers was obtained randomly from the sugar manufacturing firms. Convenience sampling was then employed to select officers and managers from the sugar manufacturing firms. Structured and semi-structured research questionnaires were used to collect primary data from the respondents. The questionnaires were dropped and picked later to enhance the response rate. The qualitative and quantitative data collected was analyzed using descriptive statistics in SPSS version 28. Inferential analysis was further carried out by correlation analysis, regression analysis and hypothesis testing. The results were then presented using tables, graphs, charts and histograms. Results: Lead time management Practice was found to have a significant effect on supply chain leverage of sugar manufacturing (t =5.05, p =.000), from the study results. This meant that a change in lead time management practice had a significant change on supply chain leverage of sugar manufacturing firms in Kenya. The study further revealed that lead time management and supply chain leverage had a statistically significant association (R =.779, R2 =.607). Consequently, lead time management practice was responsible for 60.7 percent of the variation in Supply chain leverage of sugar manufacturing firms in Kenya in terms of production efficiency, production flexibility and cost reduction. Unique Contribution to Theory, Practice and Policy: The study recommends that individual sugar manufacturing firms observes lead time practices in the acquisition of raw material supplies ensuring the shortest possible lead time, to increase production optimization and efficiency, thus supporting the theory of constraints. Consequently the sugar manufacturing firms will incur limited inventory related costs associated with stock outs or overstocking hence promoting performance, resource optimization and production efficiency and flexibility.