Warehousing Operations and Supply Chain Performance of Food and Beverages Processing Firms in Nairobi City County, Kenya

Abstract

It is observed that numerous food and beverage processing enterprises are facing a downturn in supply chain performance, a situation largely attributable to inefficiencies within their warehousing operations. Therefore, the purpose of this study was to establish the effect of warehousing on supply chain performance of food and beverages processing firms in Nairobi City County, Kenya. The study was guided by specific objectives namely: to analyze the effect of transport integration on supply chain performance of food and beverages processing firms in Nairobi City County, Kenya; to examine the effect of volumetrics on supply chain performance of food and beverages processing firms in Nairobi City County, Kenya; to determine the effect of waveless picking on supply chain performance of food and beverages processing firms in Nairobi City County, Kenya; to evaluate the effect of fulfillment on supply chain performance of food and beverages processing firms in Nairobi City County, Kenya; and to assess the moderating effect of warehousing policy framework on the relationship between warehousing and supply chain performance of food and beverages processing firms in Nairobi City County, Kenya. The research concentrated on the 134 food and beverage processors that are operating in Nairobi City County besides being registered with Kenya Association of Manufacturers. The study adopted a mixed research design with both qualitative and quantitative approaches. The target population of the study was the 134 food and beverages processing firms in Nairobi City County. A sampling frame of this study included a list of the 134 processing companies in Nairobi City County that were members of the Kenya Association of Manufacturers as of 2021. The study utilized simple random sampling. A sample size of 100 was selected with the aid of Yamane 1967 formula. Data was collected using a questionnaire. The questionnaire was pilot tested at 10 food and beverages processing companies in Kiambu county. These pilot study questionnaires were filled out by warehouse managers. Internal consistency was tested using the Cronbach alpha coefficient. The questionnaires were all be subject to expert review and opinion from at least two external experts for face, content and construct validity. Further, the statistical package for social sciences (SPSS) version 29 was used to analyze the data. Using content analysis, the qualitative data was analyzed. Quantitative data was analyzed using statistical methods involving descriptive and inferential data. A multiple linear regression model was applied to analyze the relationship between the variables. Correlation analysis was also performed. In this study, the findings were presented using tables and graphs. Data presentation made use of percentages, frequencies, means and other means of central tendencies. The study revealed that most Kenyan food and beverage processors schedule transport on demand, improving flexibility and time management. On volumetrics, most firms increase warehouse storage, reduce stock-outs, and reduce empty space. Most companies do not cut warehouse floor travel time, fulfill huge quantities, or create picking zones for waveless picking. Most organizations maintain appropriate aisle space for warehouse equipment functioning and periodically repair and maintain it. Most Kenyan enterprises improve supply chain performance by reducing incomplete orders, increasing useable capacity, minimizing back-up stock, increasing revenues, and minimizing waste.