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ROLE OF DISTRIBUTION REQUIREMENT PLANNING IMPLEMENTATION ON SUPPLY CHAIN PERFORMANCE IN RETAIL SECTOR IN KENYA: A CASE OF UCHUMI SUPERMARKET LIMITED

 

BETHUEL BETT CHEMITEI

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY


NOOR ISMAIL SHALE, PhD

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

 

CITATION: Chemitei, B,.B,. & Shale, N,.I. (2016). Role of distribution requirement planning implementation on supply chain performance in retail sector in Kenya: a case of Uchumi supermarket limited. International Journal of Human Resource and Procurement. Vol. 4 (13) pp 60-74.

ABSTRACT

Distribution requirements Planning (DRP) is a process of determining the type, the quantity and time when goods are required at a given location. The main objective of this study was to assess the role of distribution requirements planning implementation on supply chain performance in retail sector in Kenya in the case of Uchumi supermarket ltd (USL). The specific objectives of the study were: to find out the effect of integration of inventory management on supply chain performance in Uchumi supermarkets in Kenya, to determine the effect of minimization of distribution costs on supply chain performance in Uchumi supermarkets in Kenya, to assess how staff training affect supply chain performance in Uchumi supermarkets in Kenya and to ascertain the effect of top management support on supply chain performance in Uchumi supermarkets in Kenya. Descriptive research design approach was used for the case of this study. The target population was all 83 (top, middle and lower level) management staff working at Uchumi supermarket limited headquarters in Nairobi. Both quantitative and qualitative data was collected by use of a questionnaire. Data analysis included the editing for completeness and consistency which will be followed by data coding. Quantitative data was analyzed by use of descriptive statistics and inferential analysis using statistical package for social science (SPSS) version 22.0. The study concluded that integration of inventory management affect supply chain performance at Uchumi supermarkets limited. The study concludes that; DRP implementation at Uchumi supermarket have assisted in setting various parameters for inventory control, distribution requirements planning ensures that inventories, both incoming and outgoing are managed effectively, the use of DRP ensure that stock is available when required and that; DRP allows for decision making for positioning and quantity of inventory in a distribution system. The study concludes that DRP implementation cost affect supply chain performance. The study also concludes that reduced profits affect supply chain performance, lower labor turnover and improved sales values affect supply chain performance, identifying corrective actions to address issues affect supply chain performance. The study concludes that employee training is necessary in implementation of DRP, training offered by hired experts at Uchumi assist in implementation of DRP, training program about implementation of DRP at Uchumi supermarket is coordinated in time, training reduce cost of sourcing appropriate goods and services and that; training significantly improves the implementation of DRP. Most of the employees were aware of staff training. The study concludes that top level management support contributes to policies on the implementation of DRP and integration issues to a great extent, an implication that DRP adoption and implementation is ultimately the responsibility of top management. the study also concludes that; top management are committed to staff development and DRP adoption, top management make efforts to standardize the supply chain processes in the organization, top management are willing to take accountability for DRP management and delivery time lines, top management make efforts to establish quality assurance management systems and that; the implementation of the practices includes the constructs of management commitment contribute to improve the quality of service to the customers.

Keywords: Distribution requirements planning,

 

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