Margaret Kamau, Dr. Mirriam Thogori


Supply chain operations are undergoing significant structural changes in today's complicated environment. Supply chain innovation aids firms in achieving more efficient and effective management methods, resulting in higher organizational performance.  The general  objective was to examine the effect of supply chain management  practices on performance of Non-Governmental organization in Nairobi County, Kenya. The specific objectives were;  to determine effect of supplier sourcing,  inventory management,  supplier relationship,  and effect of logistics outsourcing on performance of Non-Governmental Organizations in health sector in Nairobi County, Kenya.  The theories employed in the study are; Process-Based Theory, the Principal-Agent Theory, transaction cost theory, and Resource-Based View Theory. A  descriptive research design was used. The target population was 307 staff from the procurement, finance, and operation departments of 15 NGOs in the health sector in Nairobi County. Yamane 1967 formula was used to sample 174 staff and the number was obtained through stratified and simple random sampling.  A close ended questionnaire was used to collect data from study respondents. A pilot study was conducted with 10% of the sample size (17  staff). Reliability was testing using Cronbach's Alpha Coefficient. The  data was analyzed using quantitative methods;  descriptive and inferential statistics. Data will be presented in Tables.  Findings show that; there is a moderate significant correlation between M&E planning and performance of NGOs in health sector (r=0.397, p=0.000), a moderate significant correlation between inventory management and performance of NGOs in health sector (r=0.420, p=0.000), a strong  significant correlation between supplier relation and performance of NGOs in health sector (r=0.538, p=0.000),  and a moderate significant correlation between logistics outsourcing  and performance of NGOs in health sector in Nairobi County  (r=0.436, p=0.000). The recommendations are; the NGO management should improve on supplier sourcing practices to ensure that only qualified suppliers are shortlisted,  NGOs’ should invest in technology to create an automated beneficiary and supplier management platform, and NGOs should outsource non-core logistics activities and allocate more time and resources to the core activities.

Key Words: supply chain management, supplier sourcing, inventory management, logistics outsourcing

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