Influence of Supply Chain Risk Factors on the Price of Petroleum Products among Oil Marketing Companies in Kenya
DOI:
https://doi.org/10.47941/ijscl.700Keywords:
transportation and delivery, inbound cost fluctuations, geo-politicsAbstract
Purpose: The purpose of the study is to investigate the influence of supply chain risk factors on the price of petroleum products among Oil Marketing Companies (OMCs) in Kenya with a view of making recommendations on mitigating supply chain risk factors.
Methodology: This research study adopted both descriptive and inferential statistics where data collected from 159 respondents using questionnaires is analysed and fitted into multiple regression model. The qualitative data generated was analysed by use of Statistical Package of Social Sciences (SPSS) version 22.Structured and semi structured questionnaires were used to collect data. Data gathered from the questionnaires administered was analyzed by the help of Ms Excel and SPSS version 22, while output was presented inform of frequency tables and charts.
Results and conclusion: The findings of the study demonstrated that supply chain risk factors i.e. that transportation and delivery, inbound cost fluctuations and geo-politics have a positive relationship with price of petroleum products among Oil Marketing Companies (OMCs). However, the coefficient of determination (R2 = 0.6.) revealed that only 60% of variations in the price of petroleum product could be attributed to the supply chain risk factors under investigation. The remaining 40% is attributed to other variables that were not examined in this study. In Conclusion, the price of petroleum products among oil marketing companies can be influenced by transportation and delivery, inbound cost fluctuations and geo-politics
Policy recommendation: Finally, the study recommended that Oil marketing companies to develop sophisticated supply chain risk management systems in order become less vulnerable to shocks and disruptions; and reduce exposure.
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