SUPPLY CHAIN PRACTICES AND ORGANIZATIONAL PERFORMANCE IN THE AGRIBUSINESS INDUSTRY IN KENYA: A CASE STUDY OF AMIRAN (K) LIMITED
KANINA, MUTHONI MILKA
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The study sought to investigate the effect of supply chain practices on organizational performance in the agribusiness industry in Kenya, with specific reference to Amiran (K) limited. Globally, firms in the agribusiness supply chain have found it increasingly difficult to deliver the right quality of products in the right way and at the right price due to the ever changing demands of customers. To thrive therefore, firms must be quick in responding to dynamic market demands since customer requirements and market conditions keep on changing. Specifically, the study sought to determine the effect of demand forecasting on organizational performance in Amiran (K) limited; to examine the effect of inventory management on organizational performance in Amiran (K) limited; to assess the effect of collaborative relationships on organizational performance in Amiran (K) limited and to examine the effect of risk management on organizational performance in Amiran (K) limited. The study adopted descriptive research design on a target population of one hundred and twenty-two (122) staff working in the 5 departments of Amiran (K) Limited. Owing to the small number of staff members, census was done involving all the workers in the five departments of Amiran (K) Limited. Both quantitative and qualitative data was gathered using a semi-structured questionnaire through a survey monkey method. The study used inferential and descriptive statistics to analyze quantitative data and regression analysis was conducted to determine the relationship between the independent variables and organizational performance with the help of statistical package for social sciences (SPSS version 22). Tables were used to present the final results. Findings showed that the organization has embraced the four practices of supply chain in its procurement related operations to enhance organizational performance. On demand forecasting, the study found that supply chain effectiveness in the study area has improved over the years as a result of implementation of demand forecasting. On inventory management, the study found that the organization has adopted inventory management techniques to improve on efficiency as well as the overall performance. On collaborative relationships, the study established that the organization is keen on collaborative relationships with suppliers and that the organization is open to sharing information with partners and keen on relationship management as well as process integration. On risk management, the regression results established that risk management significantly influenced organizational performance. The study concluded that there was a positive correlation between demand forecasting; risk management; collaborative relationships and organizational performance. The study recommends the procurement department to use multiple types of demand forecasting, all of which affect supply chains in different ways. On risk management, the study recommends that heads of departments should ensure risk management practices are embraced such as investing time with a cross-functional team to catalogue a full scope of risks the organization is likely to face. On collaborative relationships, it is recommended that managers should give special attention to information sharing through collaborative relationships which will ultimately result to improved organizational performance in terms of supply chain processes. Regarding future studies, the study recommends a bigger sample size to generate more elaborate findings for future studies.