Adoption of Vendor Managed Inventory Practices on Supply Chain Performance in the Selected Automobile Industries in Nairobi County, Kenya

Brenda Wanja Gititu, Dr Agnes Njeru

Abstract: Following the Corona pandemic, which has spread across the world by September 2020, many companies around the world have been aware of the fact that they should always strive to inculcate and rely on the efficient supply chains and networks in order to compete effectively in international markets and to sustain their competitive edge. As a matter of fact, the management of supply chain has caused a paradigm shift in the way most organisation operates (Brandt, 2009) The main objective of this study was to determine role of adoption of vendor managed inventory practices on supply chain management performance in the selected automobile industries in Nairobi County, Kenya with specific objective to establish role of supplier demand visibility, communication mechanism, inventory decisions, replenishment decisions and supply chain management performance in the selected automobile industries. The study adopted a cross sectional research design. The target population comprised employees in supply chain department in selected automobile companies in Nairobi according to their size. Snowball sampling technique was adopted in this study. A semi- structured questionnaire was administered through the e-mail survey and hand delivery. Secondary data was obtained from both published and unpublished records. The questionnaire was tested for validity and reliability. Both quantitative and qualitative techniques was used to analyses the data with the assistance of SPSS software program version 25. The study found that supplier demand visibility, communication mechanism, inventory decisions, replenishment decisions have significant role on supply chain management performance in the selected automobile industries. In conclusion the study recommended that automobile manufacturing companies should source for more resources, work on its time constraints and negative attitude from some stakeholders and public when undertaking the process. Further the companies need to gain visibility into their complex network of suppliers and logistics providers to collectively sense and properly respond to changes in supply and demand, customers are less likely to tolerate delivery or product errors. Supply chain demand visibility is crucial in preventing order errors and will prevent customers from taking their business elsewhere. This will ensures them are knowledgeable about every aspect of your inventory and allows firms to better help customers by improving performance and reducing errors. Putting in place the right infrastructure can help firms to achieve better supply chain visibility and therefore reduce costs, improve performance and identify problems, ultimately improving your reputation and growth.

Keywords: supplier demand visibility, communication mechanism, inventory decisions, replenishment decisions, supply chain management performance.

Title: Adoption of Vendor Managed Inventory Practices on Supply Chain Performance in the Selected Automobile Industries in Nairobi County, Kenya

Author: Brenda Wanja Gititu, Dr Agnes Njeru

International Journal of Social Science and Humanities Research 

ISSN 2348-3156 (Print), ISSN 2348-3164 (online)

Research Publish Journals

Vol. 9, Issue 3, July 2021 - September 2021

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Adoption of Vendor Managed Inventory Practices on Supply Chain Performance in the Selected Automobile Industries in Nairobi County, Kenya by Brenda Wanja Gititu, Dr Agnes Njeru