SUPPLY CHAIN OPTIMIZATION AND PERFORMANCE OF STATE CORPORATIONS IN KENYA

Jeremiah Yego, Dr. Duncan Ndung’u Nderui

Abstract


The main objective of this study was to assess the effect of supply chain optimization on performance of state corporations in Kenya. Specifically, the study sought to assess the effect of demand forecasting on performance of state corporations in Kenya, to examine the effect of strategic sourcing on performance of state corporations in Kenya. The study employed descriptive research design. The target population for this study comprised of the 248 state corporations in Kenya. Using a sampling formula, a sample size of 153 respondents were identified, where the respondents were selected using a stratified random sampling technique. This study used questionnaire to collect data relevant to respond to the research questions. Quantitative data collected was analyzed using descriptive statistical techniques which included percentages, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model were used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The finding revealed that demand forecasting had a significant and positive impact on performance of state corporations. On strategic sourcing as one of the supply chain optimization strategies, the findings revealed that strategic sourcing significantly influenced performance of state corporations in Kenya. The study concluded that there was deficiency of supply chain optimization strategies (demand forecasting, strategic sourcing) in most of the state corporations, and this negatively affected their performance. It is therefore recommended that for the state corporations to perform better and minimize wastage of public funds and ineffective service delivery, the management out to uphold supply chain optimization as a fundamental strategy to optimize their operations. The corporations ought to strengthen their relationship with suppliers for long-term benefits, embrace strategic sourcing to effectively meet their supplies needs, as well as manage the flow of inventory to minimize operational costs. The findings are informative to the supply chain practitioners particularly in the state corporations.

Key Words: Supply Chain Optimization, Performance of State Corporations, Demand Forecasting, Strategic Sourcing 


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References


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