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INTERNATIONAL JOURNAL OF HUMAN RESOURCE AND PROCUREMENT                      VOL.4, ISSUE 4, 2015

 


THE INFLUENCE OF SUPPLY CHAIN INTEGRATION ON FIRM PERFORMANCE IN KENYA: A CASE OF DHL KENYA


RAHAB KAGWANJA

Masters Student: JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY


PATRICK MWANGANGI

JOMO KENYATTA UNIVERSITY OF AGRICULTURE & TECHNOLOGY (JKUAT)


CITATION: Kagwanja, R. & Mwangangi, P (2015). The Influence of Supply Chain Integration On Firm Performance In Kenya: A Case Of DHL Kenya. International Journal of Human Resource and Procurement, 4 (4), 13-25.

 

ABSTRACT

Supply chain integration (SCI) is considered a strategic tool, which attempts to minimize operating costs and thereby enhances value for the stakeholders by linking all participating players throughout the supply chain, from suppliers to customers. Thus, this subject has attracted significant debate and discussion during the last decade. The general objective of the study was to find out the influence of supply chain integration on firm performance in Kenya using DHL Kenya as a case study. The target population of this study included managers and staff of DHL. A total of 70 respondents were targeted. Both descriptive and inferential statistics were used to analyze the data. The respondents indicated that different departments decide jointly about company objectives as shown by a mean of 3.72 and a standard deviation of 1.2955. It was also established that the firm holds joint discussion to solve operational problems (mean=4.0939, standard deviation=0.92618). The respondents indicated that the firm works with suppliers to make production plans as evidenced by a mean of 3.0303 and standard deviation of 1.45676 and participate in the sourcing decisions of suppliers (mean=3.5455, standard deviation=1.36079). It was further established that logistics activities are well integrated with the logistics activities of suppliers (mean=3.9643, standard deviation=0.76192), there is a seamless integration of logistics activities with key suppliers (mean=3.4643, standard deviation=0.91332) and logistics integration is characterized by excellent distribution, transportation and/or warehousing facilities (mean=3.5489, standard deviation=1.17722). This study provides practitioners with key recommendations to enhance supply chain integration in an organization, as such recognizing internal, supplier and customer integration as a strategic tool for competitive advantage, since competition today is based on supply chain versus supply chain and not business versus business.

Keywords: Supply chain integration, operating costs, stakeholders, suppliers and customers.


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