Impact of Supply Chain Management Practices on Organizational Performance: A Case Study of Haco Industries Limited (Kenya)

Abstract

Supply chain management (SCM) is one of the most important tools that companies use to develop their performances. The basic objectives of this research were (1) to assess the level of implementation of SCM practices in Haco Industries Ltd, and (2) to study the relationship between SCM Practices and organizational performance in the same industries. To study the relationship between supply chain management practices and organizational performance, four key dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing and training practices) were used as independent variables, while market/business and operational performance variables were used to measure the organizational performance. A sample of 40 employees was taken conveniently. Aquestionnaire was used as a research tool for the collection of data. Baseline data was gotten from some key informants and also from secondary data.Collected data were analyzed through SPSS XVIII by running frequencies, mean score. Main findings of the study revealed that there is a high level of practical implementation of SCM practices in Haco Industries ltd and that they all had a positive effect on organization's performance that is they improved the organization's performance in terms of lowering its operational costs, reduction of lead time, high customer service levels, product quality, fast response to changes in the market and expanding its market share and sales.A combination of all the four practices studied had a stronger effect on organization performance other than the effect of one which further shows the need to embrace a good combination of SCM practices.