ROLE OF ELECTRONIC DATA INTERCHANGE ON SUPPLY CHAIN PERFORMANCE IN MANUFACTURING SECTOR IN KENYA: A CASE OF BIDCO OIL REFINERY
Catherine W. Macharia - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Noor Ismail - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
A great deal of attention is paid to the issue of supply chain performance. The benefits a company could gain if it is properly employed could range from cost reductions and operational efficiencies to increased market share and increased revenues. Manufacturing companies attain significant savings from effective materials management and inventory through the use of EDI as it can lead to a reduction in cost, resulting in a significant saving. EDI in Kenya is at the early adoption stage and very few companies have the pre-requisite ICT infrastructure that is necessary for the implementation of EDI. The general objective of this study was to examine the Role of electronic data interchange on supply chain performance in manufacturing sector in Kenya: A case of the BIDCO Kenya Limited. The study was built upon the supply chain operations theory, Resource based theory, Transaction based theory and E-technology perspective theory and specific objectives of this study were to examine; customer service level on EDI, cost reduction on EDI, buyer and supplier integration and organizational policies on supply chain performance. The study adopted descriptive survey and targeted 470 employees and sample of 47 employees or 10% of the target population was considered, random sampling technique method was used and data collected through the use of questionnaires. On the other hand, secondary data was obtained from published documents such as journals, periodicals, magazines and reports to supplement the primary data. A pilot study was conducted to pretest the validity and reliability of instruments for data collection. The data was analyzed with help of SPSS version 20 and Excel. The study variables were regressed the findings showed that they had positive influence and the buyer/supplier integration was the most significant factor followed by customer service level then the cost reduction and finally the organizational policies at 5% level of significance and 95% confidence level.
