FACTORS INFLUENCING PERFORMANCE OF SUPPLY CHAIN MANAGEMENT STRATEGIES IN THE NATIONAL GOVERNMENT MINISTRIES IN KENYA

Abstract

This study investigated the factors influencing performance of supply chain management strategies in the national government ministries in Kenya. It was established that IT led to increased flexibility towards serving customer demands. Better use of information technology led to increased inventory control and timely deliveries. Supply chain relationship led to increased customer satisfaction due to better product quality, service delivery and an increased value for money. It was evident that supply chain relationship played a major role in impressing stakeholders with the seriousness of partner intentions. Finding indicated that procurement regulations affected performance of supply chain management strategies. It was established that there was efficiency in the procurement process in the national government ministries and supply chain performance affected their purchasing cycle time. Environmental uncertainties affected performance of supply chain management strategies. It was concluded that information in supply chain was an important factor for favorable and optimal decision for development and survival. The cause of poor efficiency in supply chain was due to lack of accuracy and adequacy in information systems that were responsible for providing and processing of the information. S trong partnerships were critical to performance in supply chain management strategies. Successful supply chain relationships required supervision of suppliers, development of compatible technical capabilities and sharing of information intensively and selectively leading to little or no investment in extra human resources for a tighter relationship with suppliers. The study recommended that supply chain management professionals in the national government ministries needed to embrace collaborative relationships with their suppliers so as to optimize their supply chain costs. Ethics education to the national government procuring entities staff was important to ensure that they served in ultimate objectivity, accountability, and non-discrimination. Organization code of ethics should also be put in place and adhered to. Building the capacity of service providers had been identified as one of the success factors of public procurement reforms. The research results suggested the importance of building partnerships within the supply chain through co-operation and long-term commitment which would increase satisfaction with overall supplier performance. Keywords: IT, Supply Chain Relationships, Regulations, Environmental Uncertainties, Supply Chain Management