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DETERMINANTS OF EFFECTIVE IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT PRACTICES IN THE DISTRIBUTION OF CONSUMABLE PRODUCTS IN THE OIL INDUSTRY IN KENYA: A CASE OF VANOIL ENERGY LIMITED

Mungai Benjamin Kimani, Dr. Allan Kihara

Abstract


Purpose: The study sought to examine the challenges faced in implementing effective supply chain management practices during the distribution of the consumable products in the oil industry in Kenya with reference to Vanoil Energy Limited. The study was to establish how warehousing capabilities, strategic supplier relationships, transportation planning and demand and supply forecasting affect distribution performance of the oil industry. To achieve this, the researcher reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions.

Methodology: This research study adopted a descriptive research design approach. The researcher prefers this method because it allows an in-depth study of the subject. A census was conducted where all the 70 staff in procurement department were issued with questionnaires. Data was collected using self-administered questionnaires. The data collected was analysed by use of descriptive and inferential statistics. The quantitative data generated was keyed in and analysed by use of Statistical Package of Social Sciences (SPSS) version 22 to generate information which will be presented using tables, charts, frequencies and percentages. Multiple regression models were used to show the relationship between the dependent variable and the four independent variables in this study.

Results: The findings of the study indicated that warehousing capabilities, strategic supplier relationships, transport planning and demand and supply forecasting have a positive relationship with effective distribution of consumable products in the oil industry.

Recommendations: Finally, the study recommended that companies in the oil industry should embrace supply chain management practices so as to improve distribution performance and further researches should to be carried out in other institutions to find out if the same results can be obtained.



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Keywords


Warehousing Capabilities, Strategic Supplier Relationships, Transportation Planning And Demand, Supply Forecasting and Supply Chain Management Practices

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