Determinants Of Effective Implementation Of Supply Chain Management Practices In International Humanitarian Organizations In Kenya

Abstract

New models of business grounded on new methods of designing logistics flows and supply chains have developed in the past few decades. Supply chain management practices, like the use of information technology and decision making structures, along with information sharing, collaboration and stakeholders’ integration, have allowed many industries to improve their supply chain by decreasing inefficiencies, improving service, and cutting costs of operating. Nevertheless, despite the well-documented indication of significant competitive advantage and cost decrease resulting from supply chain management practices, there is little known regarding the determinants of effective supply chain management practices implementation in international humanitarian organizations in Kenya. Consequently, this study sought to establish the determinants of effective implementation of supply chain management practices in international organizations in Kenya. This study employed descriptive survey design. The target population of this study comprised of all the 189 employees in the management level of the 21 humanitarian organizations operating in Nairobi, Kenya as identified by the Relief web (2016). The researcher used a stratified random sampling method to select to sample of 127 respondents out of the 189 management staff. The primary data was collected from the top management, middle and low level management using a self-administered semi structured questionnaire. The quantitative data collected was analysed using descriptive statistics such as frequency, percentages, mean and standard deviation using Statistical Package for the Social Science (SPSS) version 21 and Microsoft excel. In addition, a multivariate regression model was applied to determine the relative importance of each of the five variables with respect to effective implementation of supply chain management practices in international organizations in Kenya. The findings were then presented using frequency tables and graphs. Based on the research findings the study observed that human capital efficiency determines effective implementation of supply chain management practices in international humanitarian organization in Kenya. The study also found out that proper inventory management determines effective implementation of supply chain management practices in international humanitarian organizations in Kenya. The research further noted that management support is key in achieving effective implementation of supply chain management practices in international humanitarian organizations in Kenya. The research finally concludes that information sharing plays a big role in determining effective implementation of supply chain management practices in international humanitarian organization in Kenya. The study recommends that in order to improve on the level of human capital efficiency on supply chain management, managers of humanitarian organisations should recruit and continuously train SCM staff on how to improve on the efficiency of procurement functions, recruit competent staff with Knowledge and Skills on SCM functions and continuously train employees’ on professional ethical practices. In relation to inventory management the managers in humanitarian organisation should ensure that inventory is properly managed, qualified employees with proper skills should be hired to manage inventory. Finally the study recommends that information gathering and processing should be improved in the supply chain.