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FACTORS AFFECTING EFFECTIVE DISTRIBUTION OF PETROLEUM PRODUCTS IN KENYA: A CASE OF KENYA PIPELINE COMPANY (KPC)


Achieng’ Eric

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Gladys Rotich

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

Supply chain management in the Petroleum industries in Kenya has passed through many stages and made various strides to enhance its operations so that members and the general public are benefiting from in a broad perspective. Although the government has been involved in streamlining the supply chain system in the petroleum industry, it is marred by inefficiencies. Based on this concern, the study meant to establish the factors affecting effective distribution of petroleum products in Kenya with reference to Kenya Pipeline Company. The study was guided by the following specific objectives: To find out the effect of warehousing on effective distribution of petroleum products; to assess the effect of transportation on effective distribution of petroleum products and to establish the effect of lead times on effective distribution of petroleum products. The study targeted three hundred and two (n n=302) respondents among which thirty (n=30) of them took part in the study. The study used both primary and secondary data as its source and semi structured questionnaires as the main instrument of data collection. The collected data will be edited, coded and entered for analysis. The findings will be presented in pie charts, bar graphs, and tables for clarity. From the analysis the study found that warehousing, transportation, lead time and supplier relationship play a key role in the effective distribution of petroleum products. The study recommended that the management should ensure that storage facilities are well equipped and made convenient, there is need of reviewing the petroleum supply chain infrastructure, systems and investment in the sector to guarantee reliable, efficient and cost effective supply chain and that the management should ensure that the correct analysis of lead time is made in order to provide the industry with various benefits.


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