Fredrick Nzomo, Dr. Elizabeth Wachiuri


According to the Economic Survey conducted by the Kenya National Bureau of Statistics KNBS, the level of activities in the manufacturing sector has slowed down from 5.6 % in 2013 to 3.4 % in 2012 as a result of high costs of production and shortage of essential materials. This study sought to establish the influence of strategic supply chain practices on performance of manufacturing firms in Nairobi County, Kenya. Specifically, the study sought to determine the effect of outsourcing on performance of manufacturing firms in Nairobi County and to establish the effect of vendor management inventory on performance of manufacturing firms in Nairobi County. This study used descriptive research design. The target population of this study comprised of 347 employees working in soft drinks manufacturing firms, Kenya. The study used stratified random sampling technique in choosing the sample size from the three levels of management staffs. The sample size of the study was 186 employees. The study relied on primary data which was collected through use of questionnaires. This study gathered both quantitative and qualitative data. Qualitative data was analyzed by use of content analysis. Quantitative data was coded then analyzed using Statistical Package for Social Sciences (SPSS) computer software version 22. The collected data was analysed through use of descriptive and inferential statistics. Descriptive statistics were used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics comprised of correlation and regression analysis. The study results were presented through use of tables and figures. The study concludes that outsourcing has a positive and significant effect on performance of manufacturing firms in Nairobi County. In addition, the study concludes that vendor management inventory has a positive and significant effect on performance of manufacturing firms in Nairobi County. From the findings, the study recommends that the management of manufacturing firms in Nairobi County should continue embracing contracting out non-core businesses, use of external experts, concentration of core businesses and classification of factors into core and non-core

Key Words; strategic supply chain practices, outsourcing, vendor management inventory, Just in Time procurement, e-procurement and manufacturing firms

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