INFLUENCE OF SUPPLY CHAIN MANAGEMENT PRACTICES ON COMPETITIVE ADVANTAGE IN CEMENT MANUFACTURING INDUSTRY: A CASE OF EAST AFRICA PORTLAND CEMENT COMPANY LIMITED

Abstract

The supply chain management practices in manufacturing firms in Kenya are weak and there also exists little inter-industry integration in the country. They also encounter problems in materials management and lack of well integrated database system to support information flow as well as stiff competition in the current markets. The objective of the study was to look into the influence of supply chain management practices on competitive advantage in the cement manufacturing industry, with a focus on East African Portland Cement Company Limited. The study specifically sought to examine the effect of strategic supplier partnership and customer relationship on competitive advantage of cement manufacturing firms in Kenya. The study adopted descriptive research design. The target population was 676 staff from three departments, namely, supply chain department, sales & marketing and production department in EAPCC. The sample size for the study was determined using Yemane’s formula (2007). The study collected primary data using questionnaires. Statistical Package for Social Sciences (SPSS) version 21 was used in the data analysis. The study found that strategic supplier partnership influenced competitive advantage in cement manufacturing industry. Strategic supplier partnership enhanced joint inventory management between the organization and the supplier and helped promote shared benefits and ongoing collaboration in key strategic areas like technology, products and market, strategic partnership promotes collaboration in products design. Customer relationship influenced competitive advantage at EAPCC. Close relationships with customers enabled the organizations’ customers to distinguish its products to competitors. The study recommended that manufacturing companies should strive to create and abide more on the strategic supplier partnership to create their competitive advantage. Companies should create better relations with their customers to earn their loyalty through improving their services and responding timely to customer complains which in turn will create their competitive advantage over competitors.   Key Words: Strategic Supplier Partnership, Customer Relationship, Supply Chain Management