Influence of supply chain management practices on the performance of oil supplying companies in Nairobi city
Keywords:Supplier relationship management, Supply chain management practices, Supply chain collaboration, Demand forecasting
AbstractThe purpose of this study was to establish the influence of supply chain management practices on performance of the oil supplying companies in Nairobi City County. The oil supplying industry in Kenya is currently facing challenges ranging from uncontrollable high fuels costs as a result of high cost of importation, transportation and storage of the oil products which has led to low level of customer satisfaction, hence low performance of the oil supplying industries. The study aimed on the oil supplying companies in Nairobi City County as every registered oil supplying companies have their offices at Nairobi. The main objective of the study was to examine the influence of supply chain management practices on performance of the oil supplying companies in Nairobi city county and the specific objectives were; to assess the influence of supply chain collaboration management practice on performance of oil supplying companies in Nairobi city county, to evaluate the influence of customers service management practice on performance of oil supplying companies in Nairobi city county, to examine the influence of demand forecasting management practice on the performance of oil supplying companies in Nairobi city county and to assess the influence of information communication technology management practice on performance of oil supplying companies in Nairobi city county. This study focused on the 84 registered oil companies in Nairobi Kenya as the unit of analysis and the target population. The sampling technique of the study used was stratified random sampling technique in which procurement officers and distribution officers were the unit of observation. This study based the variables on different related theories. The researcher used questionnaires to gather data from respective respondents which were self-administered by the researcher. The study recommended that supply chain partners need to form effective partnership in planning, developing and executing the supply chain management activities, keep on updating with new technology so as to attain a competitive edge by implementing ICT practices on demand forecasting to attain customer satisfaction.
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