SUPPLY CHAIN OPTIMIZATION PRACTICES AND PERFORMANCE OF PUBLIC ENERGY SECTOR IN NAIROBI REGION IN KENYA

Ezra Kiboma Onserio, Dr. Anthony Osoro

Abstract


The general objective was to examine effect of supply chain optimization practices on performance of public energy sector in Nairobi Region in Kenya. The specific objectives were:, inventory management, supplier management on performance of state corporations. The study was guided by various theories. The study applied a descriptive research design. The study targeted 10 firms in the public energy sector in Nairobi Region in Kenya. The unit of observation was 638 management staff involved in key procurement and supply chain decisions. The sample size of 246 staff. Data was collected using questionnaires.  Results show that supply chain optimization practices (inventory management and supplier management have a significant relationship with performance of public energy sector in Nairobi Region in Kenya. The study concludes that supply chain optimization practices—specifically inventory management and supplier management—have significant positive effects on the performance of public energy sector corporations in Nairobi, Kenya. Notably, supplier and inventory management had the strongest impacts. However, challenges such as high operational costs, persistent customer complaints, and limited adoption of best practices were evident. The study recommends integrating advanced forecasting technologies, adopting Just-in-Time and flexible labor strategies, enhancing supplier evaluations, and modernizing logistics infrastructure. These interventions are essential to improve cost-efficiency, customer satisfaction, and overall service delivery in the sector.

Key Words: Supply Chain Optimization Practices, Inventory Management, Supplier Management, Performance of State Corporations


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