ANALYSIS OF SUPPLY CHAIN RISK MANAGEMENT ON THE PERFORMANCE OF SELECTED FOOD MANUFACTURING FIRMS IN KIAMBU COUNTY, KENYA
Abstract
Purpose of the study: The objective of this study was to examine the influence of logistics systems on the performance of selected food manufacturing firms in Kiambu County, Kenya.
Statement of the problem: Food manufacturing firms face significant risks within their supply chains, particularly related to logistics, which have historically led to substantial losses. Despite efforts to improve supply chain management in food manufacturing firms in Kiambu County, challenges persist, particularly in areas of logistics systems and operational efficiency. The specific impact of logistics systems on firm performance in this context remained insufficiently understood.
Methodology: The study employed mixed methods, using both qualitative and quantitative approaches with a descriptive research design. A target population of 191 employees from 29 selected food manufacturing firms and 20 outlets in Kiambu County was used. Key respondents included managing directors, production and operations managers, procurement managers, and logistics managers. A census was conducted due to the small population size. Data were collected through questionnaires, interviews, and document analysis. Quantitative data were analyzed using SPSS version 28, while qualitative data underwent content analysis.
Findings: The findings revealed that a majority of respondents (74.1%) strongly agreed that warehouse management influences the performance of food manufacturing firms. Additionally, 86.41% of respondents agreed that transportation costs may influence firm performance. However, the study found mixed results regarding the impact of information flow and the effectiveness of current logistic systems for timely delivery.
Conclusion: The study concludes that logistics systems play a crucial role in enhancing the performance of food manufacturing firms in Kiambu County. Factors such as warehouse management, transportation costs, information flow, and overall logistics effectiveness significantly contribute to improving firm performance outcomes.
Recommendations: The study recommends increased investments in enhancing logistics infrastructure, optimizing transportation routes, improving information management systems, and regular performance evaluations of logistics systems. Further research should explore additional factors influencing the performance of food manufacturing firms in the area.
Keywords: Logistics systems, supply chain management, food manufacturing firms, performance, Kiambu County, Kenya
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