FACTORS AFFECTING SUPPLY CHAIN MANAGEMENT PERFORMANCE IN INTERNATIONAL NON-GOVERNMENTAL ORGANISATIONS IN KENYA
Anthony Njiiru Ngoto - Master of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Assumpta Kagiri - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Efficient supply chain management has an effect on the overall internal performance of any organisation. Current economic crisis and competitiveness of global organisation increases its importance even further. Organizations adopt numerous business improvement methodologies to improve the business performance. Manufacturers and researchers have noted a number of problems regarding supply chain activities in their research and practice. This research project was centred on a survey of the challenges facing effective implementation of supply chain management in Non-Governmental organisations and it has focused on International Humanitarian Non-governmental organisations in Kenya. Supply chain management efficiency and effectiveness has profound implications on any organization’s ability to meet its customer’s demands, its reputation, and its overall financial success. There is need for humanitarian organisation to adopt best supply chain management practises that will meet the overall strategy which is to achieve value for money and to develop world class procurement systems and practices and ensure quality and timely supplies to beneficiaries.The study is taken against the backdrop of the importance of non- governmental organisations in adopting efficient supply chain management systems bearing in mind the volume of goods and services purchased is continuously rising.The aim of this study is to access the factors affecting supply chain management performance within international non-governmental organisations in Kenya. The objectives of the study were; establishing the effect of strategic supplier partnerships, contract management and information communication technology on supply chain management performance. The study is descriptive by design. This study was conducted on a population of supply chain managers in 302 registered INGOs that have been active over the past 5 years to August 2014. Out of these, the researcher randomly sampled 172 supply chain management staff of INGO to which the questionnaires were administered. Data was collected through the questionnaire which was organized to answer set objectives in the study. Data was analysed using descriptive statistics i.e. frequency distributions and measures of central tendencies. The results of the survey were presented using tables, charts and graphs. The SPSS computer software was used to aid the analysis. Multiple regression analysis was also used to determine the relationships between the variables and the effective implementation of SCM. Key findings: the study revealed that supply relationship positively affects supply chain management performance though many Non-governmental organisations are challenged by the complexity of networks in managing flow.The study established that contract management affects supply chain management performance, few Non-governmental organizations use updated documented policy to monitor contracts. The researcher also noted that information sharing is a vital tool in supply chain management performance however some Non-governmental organizations are still using paper work as a mode of communication while telephone is the most common mode of communication.
