SUPPLY CHAIN SCALABILITY AND PERFORMANCE OF DISTRIBUTION FIRMS IN NAIROBI CITY COUNTY, KENYA

Peter Odedo, Dr. Shale Noor

Abstract


The main objective of the study was on Supply Chain Scalability and Performance of Distribution Firms in Nairobi City County, Kenya. The study was  guided by the following specific objectives: to determine the effects of Supply chain agility on Performance of Distribution Firms in Nairobi City County, Kenya, and to determine the influence of Value Chain Mapping on Performance of Distribution Firms in Nairobi City County, Kenya. This study used descriptive research design Descriptive research design is used to describe characteristics of a population or phenomenon being studied. The study population consisted of Clearing and Forwarding Firms, Third Party Logistics Firms. Warehousing and Distribution Firms in Nairobi city county, Kenya. The stratified random sampling technique is appropriate for the study to come up with the sample size, because the target population is heterogeneous or of mixed sectors referred to as stratum. The stratified technique ensured that each sector in the target population has an equal chance of being selected. The most common reliability coefficient is the Cronbach’s alpha which estimates internal consistency by determining how all items on a test relate to all other items and to the total test internal coherence of data. Internal reliability test with Cronbach’s alpha was used to examine the reliability of each scale Supply chain agility, and Value Chain Mapping. The process of data analysis involved several stages each response was analyzed and their frequency tabulated quantitatively to present a more detailed interpretation. Raw data collected from the field was sorted and summarized in tables and diagrams. With the aid of Statistical Package for Social Sciences SPSS v 26.0. According to the findings; there is a strong significant relationship between supply chain agility, and firm performance (r=0.637, p=0.000), and a strong significant relationship between value chain mapping and firm performance (r=0.789, p=0.000). The study recommends that; the distribution firms should be fully responsive to customer orders and communicate seamlessly with customers. Firms should deploy more transport resources to handle any order any time to enhance efficient delivery to customers. The firms should closely work together with suppliers in order to increase the level of integration which in turn increases the operational performance.  

Key Words: Supply Chain Scalability, Supply chain agility, Value Chain Mapping, Performance of Distribution Firms

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