INFLUENCE OF DISTRIBUTION CONTROL SYSTEMS ON PERFORMANCE OF MANUFACTURING FIRMS IN KENYA

Nehemiah Kiprop Kiplagat

(Corresponding author)

Jomo Kenyatta University of Agriculture and Technology

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Dr. Ismail Noor

Jomo Kenyatta University of Agriculture and Technology

Professor Mike Iravo

Jomo Kenyatta University of Agriculture and Technology

Dr. Kepha Ombui

Jomo Kenyatta University of Agriculture and Technology

CITATION: Kiplagat, N., K., Noor, I., Iravo, M., Ombui, K. (2018). Influence Of Distribution Control Systems On Performance Of Manufacturing Firms In Kenya. International Journal of Strategic Management. Vol. 7 (7) pp 65 – 87.

ABSTRACT

This study sought to establish influence of distribution control systems on performance of manufacturing firms in Kenya. Increasing competitive pressures are forcing companies to increase their rates of innovation. Without proper management, increasing product turnover will increase design and manufacturing costs. This study employed a descriptive survey research design to accomplish its goals since it has enough provision for the protection of bias and maximized reliability. The target population comprised of managers in manufacturing firms that are members of the Kenya Association of Manufacturers (KAM). KAM therefore provided the sampling frame for this study. As at 2017, KAM had a membership of 903 manufacturing firms. A sample of 90 respondents was drawn from this population. Primary data was collected using a semi-structured questionnaire which was self-administered. Data obtained was processed and analysed using descriptive and inferential statistics. The results of the data analysis were presented in charts and tables. The study revealed that distribution control systems account for 18.4% of change in performance in manufacturing firms in Kenya. Distribution control systems as an element of multi-echelon distribution system had a significance impact on performance of manufacturing firms in Kenya. The study concluded that distribution control systems significantly influence performance in manufacturing firms in Kenya. This study recommends that manufacturing firms in Kenya should employ aspects of distribution control systems as it is one of the most important elements of multi-echelon distribution system. These include technology, collaborative models and avoiding stock-outs.

Keywords: manufacturing, performance, distribution control systems, multi-echelon, firm, technology.

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