Effects of Supply Chain Management Practices on Organizational Performance: A Case of Kenya Wine Agencies Limited, Nairobi

Abstract

The interest in managing supply chains had grown rapidly among companies around the world. Many companies had moved aggressively to implement and improve on supply chain management practices with the hope of enhancing revenue, profitability, control costs and asset utilization, as well as lead to market share growth. However, these companies had not been able to formulate the right strategies required to achieve this task and this had affected negatively the performance of most organizations, therefore, the study investigated the effect of supply chain management practices on performance with reference to Kenya Wine Agency Limited, Nairobi. The study was conducted between June and August, 2014. The objectives of the study were: to establish the effects of distribution planning, supplier relationship management, Business Process Re-engineering and Information Technology on performance at KWAL. The research adopted a case study design drawing a sample size of 91 employees from a target population of 120 employees using the Fischer's model through stratified sampling technique. The researcher used structured questionnaires to collect data. To supplement the primary data, secondary sources were used. The data was analyzed using descriptive statistics of mean and variance and inferential statistics i.e. correlation and then presented by the use of frequency tables and percentages. Distribution planning had the greatest correlation coefficient of 0.609 and therefore had greater impact on organizational performance in improvement in downstream operations. Supplier relationship management, Business Process Re-engineering and information technology had correlation coefficients of 0.019, 0.004 and -0.111 on organization's performance respectively.