SUPPLY CHAIN AUTOMATION AND PERFORMANCE OF GARMENT MANUFACTURING COMPANIES IN NAIROBI CITY COUNTY KENYA

Hanna Wambui Wanjiru, Dr. Shale Ismail Noor

Abstract


The main objective of the study is to establish the influence of supply chain automation on competitiveness of garment manufacturing companies in Kenya. Specifically, the study sought to assess the influence of inventory management systems on competitiveness of garment manufacturing companies in Kenya and to establish the influence of electronic vendor evaluation on competitiveness of garment manufacturing companies in Kenya. The study adopted a cross sectional descriptive research design. The research focused on medium and large-scale garment manufacturers in Kenya. There are 67 garment manufacturers listed currently in Nairobi County which are registered members of the Kenya Association of Manufacturers (KAM) as of 20th January 2020 (KAM, 2020). The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. The 235 respondents were chosen with the help of stratified random sampling technique. Primary data was used in this study. The study used structured questionnaires to collect primary data. Twenty-three respondents were used for piloting to refine the data collection instrument and to ascertain validity and reliability of the study data collection. Content analysis was used to analyze qualitative data from open-ended questions while descriptive statistics and multiple regression were applied to analyze quantitative data from closed ended questions. The study findings were presented through use of tables and figures. The study concludes that inventory management system has a positive and significant influence on performance of garment manufacturing companies in Nairobi City County Kenya. In addition, the study concludes that electronic vendor evaluation has a positive and significant influence on performance of garment manufacturing companies in Nairobi City County Kenya. Further, the study concludes that electronic payment has a positive and significant influence on performance of garment manufacturing companies in Nairobi City County Kenya. The study concludes that electronic sourcing has a positive and significant influence on performance of garment manufacturing companies in Nairobi City County Kenya. From the findings, this study recommends that garment manufacturing companies in Nairobi City County should continue embracing inventory management system to enhance effectiveness of inventory operations. In addition, garment manufacturing companies in Nairobi City County should continue embracing electronic vendor evaluation to be in a position to filter the available vendor to work with the best.

Key Words: Supply chain automation, Inventory management systems, Electronic vendor evaluation, Competitiveness, Garment manufacturing companies 


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References


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