Effect of Supply Chain Integration on Performance of Metal and Allied Sector Manufacturing Firms in Nairobi City County, Kenya

Abstract

Metal manufacturers in Kenya have been experiencing stagnating profitability, production, and operations management which is directly attributed to supply chain inefficiencies. This paper sought to determine the effect of supply chain integration on the performance of metal and allied sector manufacturing firms in Nairobi City County, Kenya. The study was guided by the systems theory. The study adopted a cross-sectional survey design and a target of 46 companies. Census technique was used involving 92 respondents from the procurement and stores departments. A questionnaire was used to collect primary data from the study respondents. The findings indicated that supply chain integration has a positive and significant influence on the performance of metal and allied sector manufacturing firms. The study concluded that supply chain integration positively and significantly contributes to the improved performance of metal and allied sector manufacturing firms. The study recommends that more linkage with the suppliers be enhanced since much of the delays and inefficiencies emanate from the upstream as it tickles down. Automatic ordering should be permitted to avoid chances of running short of the stock leading to production stoppages. Information security systems should also be beefed up with necessary cyber security measures to avoid unauthorized access to information.