ROLE OF SUPPLY CHAIN MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF KENYA MEDICAL RESEARCH INSTITUTE.FLORENCE CHEPKEMOI BONGEI CBM12/10332/15 A RESEARCH THESIS PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS AND ECONOMICS IN PARTIAL OF THE REQUIREMENTS OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION; OPERATIONS MANAGEMENT OPTIONKISII UNIVERSITYSEPTEMBER, 2018 COPY RIGHTAll rights are reserved. No part of this proposal or information herein may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the author. © 2018, Florence Chepkemoi, BongeiDECLARATIONDECLARATION BY THE CANDIDATEThis thesis is my original work and has not been presented for a degree in any other university. Florence Chepkemoi Bongei _____________ _____________CBM12/10332/15SignatureDateRECOMMENDATION BY THE SUPERVISORSThis thesis has been submitted for examination with our approval as University supervisorsProf.
Christopher Ngacho,Associate Professor School of Business and Economics,Kisii University__________________________SignatureDateDr. Yusuf Kibet,Senior lecturer,School of Business and Economics,Kisii University_____________ _____________SignatureDateDEDICATIONI dedicate this work to my husband Andrew Maluki and my son Andy Mwendwa for their unwavering support that saw me complete the proposal, more so to my brother Ben Cheruiyot for proof reading this proposal.ACKNOWLEDGEMENTI wish to thank my supervisors Prof. Christopher Ngacho and Dr. Yusuf Kibet for guidance and reviewing my proposal, my employer KEMRI especially the Director for allowing me to carry out my research at the institute.Appreciation to all my family members for the understanding and support they gave and continue to give me during my study period, their encouragements and patience.ABSTRACTSupply Chain Management (SCM) is one of the most important, strategic aspects of operations management because it encompasses so many related functions. Who to buy materials from, how to transport goods and services, and how to distribute them in the most cost-effective, timely manner constitutes much of an organization’s strategic planning.
SCM focuses on integrating and managing the flow of goods and services and information through the supply chain in order to make it responsive to customer needs while lowering total costs. SCM represents a significant change in the way that organizations view themselves and has witnessed values created through the integration and coordination of supply, demand and relationships in order to satisfy customers in an effective and profitable manner both in the private and public sectors. Conventional wisdom among practitioners holds that supply chain collaboration yields significant performance improvements. All of these critical functional supply chain decisions are complicated by the fact that they often occur in a global environment within cultures and markets. Traditionally, each segment of the supply chain was managed as a separate (stand-alone) entity focused on its own goals.
However, to compete in today’s global marketplace a company has to count on the combined and coordinated effort of all members of the supply chain. Supply chains require close collaboration, cooperation, and communication among members to be effective. Suppliers and their customers must share information. It is the rapid flow of information among customers, suppliers, distributors, and producers that characterizes today’s supply chain management. Suppliers and customers must also have the same goals. They need to be able to trust each other: Customers need to be able to count on the quality and timeliness of the products and services of their suppliers. Furthermore, suppliers and customers must participate together in the design of the supply chain to achieve their shared goals and to facilitate communication and the flow of information. This study therefore will analyse four variables; customer relationship management, supplier relationship management, integrated Information communication technology and capacity and resource management to assess their role in the overall organizational performance.
The target population of the study will be 3518 employees from KEMRI HQ. The sample size of 75 respondents will be drawn from the sections of research, technical staff and support staff, where the supply chain management practices are applied. The primary data will be collected through questionnaire with set questions relating to specific objectives of the study.
Stratified Random sampling technique will be applied to get a sample population that will be issued with the questionnaires. The study will use quantitative and qualitative method of data analysis using descriptive statistics on quantitative data and inferential statistics on qualitative data. Data results and findings will be presented in tables and figures.TABLE OF CONTENTS TOC o “1-3” h z u COPY RIGHT PAGEREF _Toc524007187 h iiDECLARATION PAGEREF _Toc524007188 h iiiACKNOWLEDGEMENT PAGEREF _Toc524007189 h vABSTRACT PAGEREF _Toc524007190 h viTABLE OF CONTENTS PAGEREF _Toc524007191 h viiLIST OF TABLES PAGEREF _Toc524007192 h ixLIST OF FIGURES PAGEREF _Toc524007193 h xLIST OF ABBREVIATIONS PAGEREF _Toc524007194 h xiCHAPTER ONE PAGEREF _Toc524007195 h 1INTRODUCTION PAGEREF _Toc524007196 h 11.1:Background of the study PAGEREF _Toc524007197 h 11.1.1:Supply chain management practices PAGEREF _Toc524007198 h 11.1.
2:Organizational performance PAGEREF _Toc524007199 h 31.1.3:Kenya Medical Research Institute (KEMRI) PAGEREF _Toc524007200 h 41.2:Statement of the problem PAGEREF _Toc524007201 h 61.3:Objectives of the study PAGEREF _Toc524007202 h 71.
3.1:General objective of the study PAGEREF _Toc524007203 h 71.3.2:Specific Objective of the study PAGEREF _Toc524007204 h 71.4:Research Hypothesis PAGEREF _Toc524007205 h 71.5:Importance of the study PAGEREF _Toc524007206 h 81.6:Scope and justification of the study PAGEREF _Toc524007207 h 91.
7:Limitation of the study PAGEREF _Toc524007208 h 101.8:Assumptions of the study PAGEREF _Toc524007209 h 111.9:Operational Definition of Terms: PAGEREF _Toc524007210 h 11CHAPTER TWO PAGEREF _Toc524007211 h 14LITERATURE REVIEW PAGEREF _Toc524007212 h 142.1 Theoretical Review PAGEREF _Toc524007213 h 142.
1.1The Supply Chain Operations Reference (SCOR) Model PAGEREF _Toc524007214 h 142.1.
2Global Supply Chain Forum Framework PAGEREF _Toc524007215 h 162.1.3The Value Chain model PAGEREF _Toc524007216 h 172.2Empirical review PAGEREF _Toc524007217 h 182.2.1Organizational performance PAGEREF _Toc524007218 h 182.2.2Customer Relationship Management (CRM) Practice.
PAGEREF _Toc524007219 h 192.2.3Supplier Relationship Management Practice. PAGEREF _Toc524007220 h 202.2.
4Integrated Information Communication Technology Practice. PAGEREF _Toc524007221 h 222.2.
5Capacity and Resource Management Practice. PAGEREF _Toc524007222 h 252.2.
6Government Policy PAGEREF _Toc524007223 h 282.3Summary of Research Gaps PAGEREF _Toc524007224 h 292.4Conceptual Framework PAGEREF _Toc524007225 h 30CHAPTER THREE PAGEREF _Toc524007226 h 33RESEARCH METHODOLOGY PAGEREF _Toc524007227 h 333.1Research design PAGEREF _Toc524007228 h 333.2Study Area and Target Population PAGEREF _Toc524007229 h 333.
3Sample and The Sampling Techniques PAGEREF _Toc524007230 h 333.5Data Collection Procedures PAGEREF _Toc524007231 h 353.5.1Validity of Research Instrument PAGEREF _Toc524007232 h 353.5.2Reliability of research instruments PAGEREF _Toc524007233 h 353.
6Data Analysis PAGEREF _Toc524007234 h 363.7Ethical Considerations. PAGEREF _Toc524007235 h 37REFERENCES PAGEREF _Toc524007236 h 38APPENDIX I: QUESTIONNAIRE PAGEREF _Toc524007237 h 44APPENDIX 11: THESIS WORKPLAN PAGEREF _Toc524007238 h 51APPENDIX III: PROPOSED PROJECT BUDGET PAGEREF _Toc524007239 h 52APPENDIX IV: TARGET POPULATION BREAKDOWN PAGEREF _Toc524007240 h 53LIST OF TABLES TOC h z c “Table 3.” Table 3. 1 Sample Size PAGEREF _Toc524003361 h 34LIST OF FIGURES TOC h z c “Figure 2.” Figure 2. 1 SCM System PAGEREF _Toc524003362 h 23Figure 2.
2 The Conceptual Framework PAGEREF _Toc524003363 h 29LIST OF ABBREVIATIONSAPICSAmerican Production and Inventory Control SocietyBIFM British Institute of Facilities Management CIPS Chartered Institute of Procurement and Supply CRM Customer Relationship ManagementCMBCommon Method Bias DOD Department of Defense e-SCM Electronic Supply Chain ManagementGSCFGlobal Supply Chain Forum HQ Head Quarters ICT Information Communication Technology IT Information TechnologyKEMSAKenya Medical Supplies AgencyKEMRIKenya Medical Research Institute OGC Government of Commerce SRM Supplier Relationship ManagementSCM Supply Chain Management SCMRSupply Chain Management ReportSCC Supply Chain CouncilSCOR Supply Chain Operations Reference SPSS Statistical Package for Social SciencesPPDAPublic Procurement and Disposal ActPPOA Public Procurement Oversight Authority CHAPTER ONEINTRODUCTION1.1:Background of the studyThis chapter provides the background of the study by introducing the concept of Supply Chain Management Practices and its role in the performance of states corporations in Kenya. Supply chain management (SCM) is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (Mwilu, 2013). Another definition is provided by the American Production and Inventory Control Society (APICS), Dictionary when it defines SCM as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally (wikipedia). A supply chain is therefore a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous information flow. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business.
The key supply chain processes as stated by Lambert (2008) are: Customer relationship management, Customer service management, Demand management style, Order fulfillment, Manufacturing flow management, Supplier relationship management, Product development and commercialization, Returns management. According to Kichemwa, (2015) effective SCM has become a potentially valuable way of securing competitive advantage and improving organizational performance as competition is no longer between organizations, but among supply chains.1.1.1:Supply chain management practicesAccording to the Global Supply Forum Supply Chain Management (SCM) is the integration of key business processes from the end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders.
‘ This definition mentions key business processes without limiting itself to processes such as buying, movement or storage, and their integration. It also uses terms such as original suppliers and adding value to customers and stakeholders, which are quite interesting and appreciable (Chandrasekaran, 2010). The practice of SCM refers to complete set of actions which are done in organizations towards improving the effectiveness in the internal supply chain. The modern evaluation of the SCM practices that comprises of partnership with the supplier, process of outsourcing, compression of cycle time, continuousness of process flow and sharing or technology and information (Ibrahim & Hamid, 2014).Alvarodo and Kotzab (2001) viewed SCM practices in terms of reducing duplication effects by focusing on core competencies and using inter-organizational standards such as activity-based costing or electronic data interchange and eliminating unnecessary inventory level by postponing customizations towards the end of the supply chain. Countries such as the UK, US and Canada have long employed SCM in the management of their procurement and logistics.
For instance, Mwilu, (2013) acknowledged that the Department of Defense (DOD) in the US has minimized cost through lead time in the management of its logistics by employing SCM practices. Also, the office of Government of Commerce (OGC) in the UK releases year to year updates about best practices of SCM in the public sector (Mwilu, 2013). Koh et al. (2007) categorized SCM practices from the following aspects: close partnership with suppliers, close partnership with customers, just-in-time supply, strategic planning supply chain benchmarking, few suppliers, holding safety stock and sub-contracting, e-procurement, outsourcing and many suppliers. Ellram, Tate and Billington (2007) identified seven theoretical processes of service supply chains which include information flow, capacity and skills management, demand management, customer relationship management, supplier relationship management, service delivery management and cash flow.
In Kenyan context Mwilu, (2013) broke down supply chain into four main sectors that is, SCM at Public Sector, Private Sector, Non-governmental institutions and the donor sector. All the above sectors have resulted to the management of supply chain as a result of the need to be efficient and flexible and to achieve this there must be proper supply chain management practices. In the past decades, the Public Procurement System in Kenya has undergone significant development and just as marketing grew in the 1960s to encompass sales, retailing, advertising, customer relations, product design, and market research and in so doing encouraged an overview that then revolutionized the approach to serving the customer; so, supply chain has evolved to encourage a similar integration of materials-related functions. Moreover, and what is perhaps more important, the supply chain approach recognizes the importance of those functions both individually and collectively and the need to manage them in totality. According to Chong, et al.
, (2010) Supply chain management coordinates and integrates all of the materials-based functions inherent in planning and forecasting, sourcing, manufacturing or servicing and processing a product, and its distribution. The literature suggests that there are two interrelated forms of supply chain integration forstrategic alliances. The first type of integration involves coordinating and integrating the forward physical flow of deliveries between suppliers, manufacturers, and customers. The other type of integration called supplier alliances, involves the backward coordination of information flows from customers to suppliers. These information flows allow multiple organizations to coordinate their activities and physical flows in an effort to truly manage the supply chain (Handfield and Nichols 1999, Frohlich and Westbrook 2001&Vanpoucke 2009).
Supply chain integration, which is the core aim of strategic alliances for supply chain improvement, focuses on the tactical and operational processes and is thus defined as the processes or routines of acquiring and sharing information with a supply chain partner and the practices and procedures in place to handle this information and to support the physical flow (Swink et al. 2007, Carr and Pearson 1999 &Vanpoucke 2009).In general, this study categorized SCM practices into customer relationship management, supplier relationship management, integrated information technology and capacity and resource management.
1.1.2:Organizational performanceOrganizational performance refers to how well an organization achieves its market-oriented goals as well as its financial goals. The short-term objectives of SCM are primarily to increase productivity and reduce inventory and cycle time, while long-term objectives are to increase market share and profits for all members of the supply chain. Financial metrics have served as a tool for comparing organizations and evaluating an organization’s behavior over time.
Any organizational initiative, including supply chain management, should ultimately lead to enhanced organizational performance.Voss et al., (2012) and Chesaro (2016) explains that operational performance refers to aspects of an organizations process which can be quantified. It includes variables such production reliability and defect rates, cycle time, on time delivery, cost of quality and scrap reduction, productivity, and inventory management.
Srinivasan et al., (2011) and Chesaro (2016) explained the concept of supply chain performance as the extent of performance of the processes included within the firm’s supply chain department. Some of the measures specifically used to determine the supply chain performance of a firm include supplier performance, customer satisfaction, stock costs, and number of on-time deliveries, product availability performance and lead time. Mwale, (2014) defines Organizational Performance as the ability of an organization to fulfill its mission through sound management, strong governance and a persistent rededication to achieving results.Birech (2011) and Chesaro (2016) highlighted various performance metrics within operations area which include productivity measures, quality measures, inventory measures, lead-time measures, preventive maintenance measures, performance to schedule, and utilization, specific measures which include cost of quality, variances, period expenses, safety measured on some common scale such as number of hours without an accident, profit contribution, measured in dollars or some common currency.
A number of prior studies have measured organizational performance using both financial and market criteria, including return on investment (ROI), market share, profit margin on sales, the growth of ROI, the growth of sales, the growth of market share, and overall competitive position Li et al., (2004). In line with the above literature, the same items will be adopted to measure organizational performance in this study. 1.1.3:Kenya Medical Research Institute (KEMRI)Kenya Medical Research Institute (KEMRI) is a State Corporation established through the former Science and Technology (Amendment) Act of 1979, which has since been amended to Science, Technology and Innovation Act, 2013. The 1979 Act established KEMRI as a National body responsible for carrying out health research in Kenya.
It spells out the mandate and responsibilities of KEMRI as follows; To carry out research in human health; To cooperate with other research organizations and institutions of higher learning on matters of relevant research and training; To liaise with other relevant bodies within and outside Kenya carrying out research and related activities; To disseminate and translate research findings for evidence based policy formulation and implementation; To cooperate with the Ministry responsible for Health, the National Commission for Science, Technology and Innovation, and the Medical Science Advisory Research Committee on matters pertaining to research policies and priorities , to do all such things as appear necessary, desirable or expedient to carry out it functions (KEMRI strategic plan, 2013-2017).The Institute has a diverse range of specialized health research facilities located within Nairobi and its research stations in Kisumu, Busia, Kericho, Kilifi, Malindi and Kwale. These facilities include research laboratories, research equipment, clinics and field research sites. Other facilities include the Graduate School, and Production Unit. Research Centres have several research laboratories, projects and activities and are headed by Centre Directors.
Centres also host collaborative projects/programmes which are semi-independent research or service entities involving international collaborators coordinated by KEMRI. The rapidly changing global economic, political and social trends have necessitated organizations to re-examine their mandates and reasons for their existence. The Kenya Government has embarked on reforms in the health sector as part of the wider economic reforms that are geared towards rapid economic recovery and improved quality of life in the country. The reforms create organizational transformation of State Corporations which calls for the need to re-examine their strategic direction and make necessary changes in order to improve governance and performance. Through this strategic planning process, KEMRI, as a National health research institution, is committing to address priority National health challenges, and introduce management reforms that will ensure that strategic goals are realized with greater efficiency, and in a cost-effective manner (KEMRI strategic plan, 2013-2017). Research supply chain operation is complex to manage. Medical Research service is one of the primary areas in the healthcare and pharmaceuticals supply management system where the cost reductions are the predictable outcome. Research Institutes ‘supply chain management is the process of managing, distributing, monitoring product or service in the institute which dealing with suppliers, customers and other channel members.
Research, by its very nature, is a costly and demanding undertaking. It requires highly trained and skilled manpower in addition to adequate and sustainable financial resources to realize the desired goals. The KEMRI Board of Management is, therefore, committed to enhancing capacity building, financial sustainability, and ensure that the Institute continues to attract and retain highly trained and skilled manpower and embracing kaizen (KEMRI strategic plan, 2013-2017).1.2:Statement of the problemBusinesses and supply chains have become substantially more global over the last decade. The concept of SCM has received increasing attention from academicians, consultants and business managers alike.
Many organizations have begun to recognize that SCM is the key to building sustainable competitive edge with great potential to boost efficiency and reduce costs of most states corporations. Everyone agrees that effective supply chain management can provide a major source of competitive advantage. The goal of any supply chain must therefore be to link the end customers, the channels of distribution, the production processes and the procurement activity in such a way that customers’ service expectations are exceeded and yet at a lower total cost. Companies find themselves reacting to whatever the cost issue of the day happens to be; shocks to integral costs, rapid wage inflation in previously low-cost labor markets, spikes in commodity prices, or even sudden credit freezes and escalating fuel prices, and companies are scrambling to reevaluate distribution strategies, engage third-party logistics providers more extensively or even share loads with competitors trying to keep pace with cost instability. The intense focus on controlling costs is also quite evident in any supply chain’s activities and programs. Now companies rank cost containment as their number one responsibility to the business far ahead of enterprise growth and product/service innovation (Lee ; Kwon, 2007). Despite this increased attention, the literature has not been able to offer much way of guidance to help the practice of SCM (Mwale;Nyamwange,2014). Much of the current theoretical/Empirical research in SCM focuses on only downstream or upstream side of the supply chain or certain aspects/perspectives of SCM.
Chesaro, (2016) study found that most Multinational Manufacturing Companies have adopted supply chain management practices to a great extent which has enhanced service delivery, improved decision making enhanced overall cost reduction and real time delivery of goods and services but little research has been done on the public sector. Despite the importance of supply chain practices on supply chain performance there are still shortage of empirical research on supply chain integration comprising external suppliers and customers and internal company integration, and weaknesses in our understanding of the interrelationships between the levels of supply chain integration. While the literature is stating that the most admired and feared competitors today are companies that link their customers and suppliers into tightly integration networks, previous studies showed a positive, but rather weak link, between supply chain integration practices and performance. Moreover, some empirical studies even showed that supply chain practices are no guarantee for success. Consequently, other factors are influencing this link between supply chain integration and performance. This research addresses these gaps in literature and investigates the role supply chain management practices might contribute to improved organizational performance.
1.3:Objectives of the study1.3.1:General objective of the studyThe overall objective of this study is to investigate the role of supply chain management practices in Kenyan states corporations on their performance in striving for a competitive edge.1.3.2:Specific Objective of the studyTo determine how levels of customer relationship management practices affect organizations’ performanceTo find out how levels of supplier relationship management practices affect organizations’ performanceTo establish how levels of information and technology management practices affect organizations’ performanceTo evaluate how levels of capacity and resource management practices affect organizations’ performance1.
4:Research HypothesisHO1Customer relationship management practice has no significant contribution on organizations’ performanceHO2Supplier relationship management practice has no significant contribution on organizations’ performanceHO3Information and technology management practice has no significant contribution on organizations’ performanceHO4There is no significant relationship between capacity and resource management practice on organizations’ performance1.5:Importance of the studyThis study will benefit the following;Policy MakersThe information will be used by Kenyan Policy makers in government and private sectors to come up with strategies and policies that ensure the state corporations in Kenya compete favorably in the global market in sustainable manner. Government will be able to come up with trade and tariff policies that promote and protect the development of steel manufacturing companies in Kenya.Academic Research Institutions The study will provide a theoretical and empirical framework for research in Supply Chain Management Practices with state corporations in Kenya and will contribute to the body of knowledge since it will be reference material for future researchers and academicians.
They shall find the study methodology and subsequent results rich enough to guide future research. Further, the study will act as an impetus to reignite interest in this critical area of study.Management of State Corporations.
The study findings will be of great importance to the management of KEMRI headquarters. It will make them to re-evaluate their supply chain management practices and ensure that they build customer feedback in to their business operations by improving their information communication systems, standardize processes and products, empower and train workers on critical skills that will make them achieve high level of performance. The findings will help managers to strategize on reducing purchasing cost, reducing excess inventories and reducing costs associated with non-value adding activities leading to improved performance of the company.
Government The government will use the information to set up standards governing the state research institutions’ processes and develop physical infrastructure that will promote medical and health research industry. The government will use the information to guide the industry in terms of international and local trade regulations. It will help the government to develop the right skilled workforce to work in the state corporations.Community The community is the consumers and suppliers KEMRI and is directly or indirectly affected by the operation of KEMRI. When KEMRI successfully incorporate Supply chain management practices will be able to be responsive to customers changing needs that include clean environment and quality products. They will also benefit from reduced prices as a result of reduced operational costs and local sourcing of materials and professional services. Additional community benefits that may arise as a result of good performance of KEMRI may include charitable donations, bursaries, community projects and facilities and support for local community services.
1.6:Scope and justification of the studyThe study will focus on the state corporations in Kenya, a case study of Kenya Medical Research Institute Head Quarters in Nairobi.This research focuses on the phenomenon of supply chain practices comprising external supplier integration, external customer integration and internal company practices. As supply chain integration is related to other concepts within the field of operations and supply chain management such as logistics, these concepts are specified but their use is limited to clarifying issues concerning supply chain practices. However, the empirical findings suggest that the new emerging concept of supply chain visibility is closely related to supply chain integration and as such its relevance is highlighted in this research.Supply chain management (SCM) is one of the key mechanisms enabling government and state corporations to implement policy.
Traditionally, SCM has been misunderstood and undervalued. Its strategic importance has not been recognised, and it has been under-capacitated. The negative effects of inefficient public sector SCM, particularly in the procurement phase of the chain, are well documented. Suppliers charge excessive prices; goods and services contracted for and delivered are of poor quality and unreliable; and there is corruption and waste. The private sector, by contrast, has tended to invest heavily in SCM in order to maximise shareholder value and ensure that its products and services match clients’ needs. As companies struggle to increase customer value by improving performance, many companies are turning their attention to SCM. The new millennium features increasing numbers of world-class competitors, domestically and internationally, that are forcing organizations to improve their internal processes to stay competitive. Sophisticated customers, industrial and consumer, no longer talk about price increases but rather they demand price reductions.
Despite the large body of research in operations and supply chain management literature on SCM, most studies agree that the theory of supply chain integration is still underdeveloped and there is a clear lack of agreement on its constructs (Flynn et al., 2010; Zhao et al., 2011; Schoenherr and Swink, 2012; Gimenez et al., 2012 and Abushaikha, 2014).
The main motivation for conducting this study was initiated from the challenges the researcher encountered while working within the supply chain management team identifying improvement opportunities in the performance of KEMRI.1.7:Limitation of the studyThe basis of this research is to gain a greater understanding of supply chain integration from a developing country perspective through introducing a qualitative empirical investigation at KEMRI’s supply chain. Therefore, where a reference is made to focal company, that is, research institution and single sector. Hence, the most obvious limitation of this research is the concern with generalizing the findings from inductive case study to a wider state corporations or other nations.
Future research should consider multiple industries or sectors to increase the understanding of the contributions of Supply chain management practice on performance.This study will adopt a cross-sectional survey and this will be one of the main limitations of the study since the researcher will not be able corroborate cross-sectional findings and examine performance prior to and after implementation of SCM practices at different time periods in order to provide insights into the refinement of the pertinent items. Since survey data relies on a single instrument, this might create issues of common method bias (Podsakoff et al. 2003). To limit common method bias (CMB) and biased responses, great care will be taken in setting up questionnaires and statistically controlled for method effects in the study (Podsakoff et al.
2003).A longitudinal study examining the development of performance for longer period of time should be considered in future research.Also, the study will rely largely on quantitative methodology of data collection by use of questionnaire with limited extent qualitative methodology hence making it a bit restrictive. Furthermore, consistency motives, social desirability, implicit theories, illusory correlations, leniency, acquiescence, and mood states all may have biased individuals’ responses (Podsakoff et al. 2003). Therefore, more of qualitative methodology of data collection should be undertaken in future to provide wider perspective to the study.
1.8:Assumptions of the studyIn conducting this study, it is assumed that all respondents will be co-operative and will be willing to fill in the questionnaires. It is also assumed that the respondents will give reliable responses. The researcher assumes that all the sampled respondents have common knowledge on supply chain management practices.
1.9:Operational Definition of Terms:Supply Chain: Is a system of organizations, people, activities, information and resources involved in the planning, moving, or storage of a product or service from supplier to customer (actually more like a “web” than a “chain”). Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer (Myerson, 2015).Supply Chain Management (SCM): American Production and Inventory Control Society (APICS), dictionary defines SCM as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. Practices: This is a conventional, traditional, or otherwise standardized method employed to achieve the desired objective. SCM practices are a set of activities undertaken by organizations to ensure effective management performance of its supply chain. They not only promote organization’s cutting advantage, but also enhance its performance.
Customer Relationship Management (CRM): Baltacioglu et al. (2007) defined Customer relationship management as maintaining and developing long-term customer relationships by developing information continuously and understanding what customers want. Customer relationship management from supply chain management perspective must take care of responsiveness, reliability, and flexibility.Supplier Relationship Management (SRM): SRM is concerned with the management of the supplier relationship.
CIPS explains that this “involves managing the interfaces between organisations supplying goods and/or services to an organisation in order to maximise their value”. It is about building relationships that work towards supporting an “effective, financially beneficial environment” BIFM (2015).Integrated Information Communication Technology (ICT): Is the ability to make strategic decisions quickly based on accurate data, and this requires an efficiently and effectively. Supply chain management is based on the exchange of substantial quantities of information among the buyer, supplier and carrier to increase the efficiency and effectiveness of supply chain. Capacity and Resource Management: according to Biswas and Narahari (2004).
A supply chain network uses resources of various kinds: manufacturing resources (machines, material handlers, tools, etc.); storage resources (warehouses, automated storage and retrieval systems); logistics resources (trucks, rail transport, air-cargo carriers, etc.); human resources (labour, scientific and technical personnel); and financial (working capital, stocks, etc.). The objective is to utilize these assets or resources efficiently so as to maximize customer service levels, minimize lead times and optimize inventory levels.
Performance – It is a set of financial and nonfinancial indicators which offer information on the degree of achievement of objectives and results (Lebans &Euske, 2006)Organizational performance: organizational performance encompasses three specific areas of firm outcomes: (a) financial performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc.) Reducing costs through streamlined, simplified rules and processes should result in improved public SCM (Richard et al., 2009)CHAPTER TWO LITERATURE REVIEW2.1 Theoretical Review2.1.1The Supply Chain Operations Reference (SCOR) ModelThe supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company (Supply Chain Council, October,2007).
The SCOR model “provides a unique framework that links business processes, metrics, best practices and technology features into a unified structure to support communication among supply chain partners and to improve the effectiveness of supply chain management and related supply chain improvement activities” (Supply Chain Council, 2009). According to the SCC, SCOR is used to identify, measure, reorganize and improve supply chain processes through a cyclical process that includes; 1. Capturing the configuration of a supply chain. 2. Measuring the performance of the supply chain and comparing against internal and external industry goals and 3. Re-aligning supply chain processes and best practices to fulfill unachieved or changing business objectives.
The model integrates business concepts of process re-engineering, benchmarking, and measurement into its framework (Huan et al., 2004 & Naslund and Williamson 2010). This framework focuses on five areas of the supply chain: plan (demand and supply planning and management), source (sourcing infrastructure and material acquisition), make (manufacturing and production i.e. production activities, packaging, staging product, and releasing), deliver (order management, warehousing, and transportation), and return (return of containers, packaging, or defective product i.e.
management of business rules, return inventory, assets, transportation, and regulatory requirements). Each of these processes is implemented through four individual levels. The first level defines the scope and content of the model itself, as well as specifying basis for competition performance targets.
At level two, companies implement their operations strategies dependent upon the configurations they choose for their supply chains. Level three defines inputs, outputs, and flows of each transactional element, and finally, level four defines the implementation of specific supply chain management practices (Lockamy and McCormack 2004 & Naslund and Williamson 2010). The source, make, and deliver processes of the SCOR model create a continuous chain of activity throughout a company’s internal operations and, potentially, across the whole inter organizational supply chain. One also could argue that the framework includes a high-level planning process, which balances aggregate demand and supply to develop a course of action that best meets the requirements of the source, make, and deliver processes (Lambert et al.
2005 ; Naslund and Williamson 2010). These areas repeat again and again along the supply chain. The supply chain council says this process spans from “the supplier’s supplier to the customer’s customer (Supply Chain Council. October 7, 2004).The SCOR process can go into many levels of process detail to help a company analyze its supply chain. It gives companies an idea of how advanced its supply chain is.
The process helps companies understand how the 5 steps repeat over and over again between suppliers, the company, and customers. Each step is a link in the supply chain that is critical in getting a product successfully along each level. The SCOR model has proven to benefit companies that use it to identify supply chain problems. The model enables full leverage of capital investment, creation of a supply chain road map, alignment of business functions, and an average of two to six times return on investment (Bauhofet al; 2004). The benefits of implementing the SCOR model included faster cycle times, less inventories, improved visibility of the supply chain, and access to important customer information in a timely fashion (Honggeng et al; 2011).As reported by Honggeng et al;(2011) study the relationships among the supply chain processes in the SCOR model are generally supported. The Plan process has significant positive influence on the Source, Make, and Deliver processes. The Source process has significant positive influence on the Make process and the Make process has significant positive influence on the Deliver process.
Among the four supply chain processes, the Plan process has received the least attention from the implementation firms. The findings from this study provide practitioners statistical confidence in the implementation and use of the SCOR model.According to SCC (2005) overview on SCOR, it spans from all customer interactions, from order entry through paid invoice; all product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc. and all market interactions, from the understanding of aggregate demand to the fulfillment of each order. However, SCOR does not attempt to describe every business process or activity, including; Sales and marketing (demand generation), research and technology development, product development and some elements of post-delivery customer support but links can be made to processes not included within the model’s scope, such as product development, and some are noted in SCOR.
Another common criticism of SCOR is that it is too “generic” to describe the peculiarities of a given industry or company and that it assumes but does not explicitly address; training, quality and Information Technology (IT). Another criticism of SCOR is the vast array of metrics at each of the model’s three process levels. While it is true that the hundreds of individual measures can seem daunting to say the least, it’s important to understand what SCOR’s curators consider to be the fundamental attributes of any supply chain: Reliability, Responsiveness, Flexibility, Costs and Assets (Dewicki, 2015)2.1.2Global Supply Chain Forum Framework Developed by the Global Supply Chain Forum (GSCF) (Lambert et al. 1998 & Naslund and Williamson 2010), GSCF framework identifies eight key processes that form the foundation for supply chain management.
Common definition and shared understanding of processes is thus of significant importance (Croxton et al. 2001 & Naslund and Williamson 2010). The eight key business processes are; Customer Relationship Management, Customer Service Management, Demand Management, Order Fulfillment, Manufacturing Flow Management, Supplier Relationship Management, Product Development and Commercialization and Return Management (Cooper et al. 1997 & Naslund and Williamson 2010). Each process runs cross-functionally, cutting through functional silos within each organization (Croxton et al.
2001 & Naslund and Williamson 2010). Functional silos are defined, for example, as marketing, research and development, finance, production, purchasing, and logistics. Each process is furthermore broken down into a series of strategic sub-processes, thus providing the blueprint for implementation of the framework (Lambert et al. 2005 & Naslund and Williamson 2010). Of the eight processes, customer relationship management and supplier relationship management provide a crucial link to external companies within the chain. Although the processes should be considered by all companies in each supply chain, the significance of each process may differ (Croxton et al. 2001 & Naslund and Williamson 2010).
Some companies may need to link just one key process while for other companies it is appropriate to link multiple processes. It is thus crucial to analyze which key processes to integrate and manage in each specific case (Cooper et al. 1997 & Naslund and Williamson 2010). The GSCF framework stresses the importance of utilizing a process focus, where all functions that touch a product or are involved in its service delivery must work together. Therefore, it also is paramount that close relationships be continually developed and maintained with key customers and suppliers. For this purpose, the GSCF has also developed a partnership model, helping companies to structure fundamental relationships that are identified when implementing the customer relationship management and supplier relationship management processes (Lambert 2008 & Naslund and Williamson 2010). According to the GSCF framework, when all proper coordination mechanisms are in place across the various functions, the result will be an efficient and effective supply chain.2.
1.3The Value Chain modelThe Value Chain model, originated by Michael Porter (1985), shows the value-creating activities of an organization, which relies heavily on supply chain functions. In a value chain, each of a firm’s internal activities (inbound logistics, operations, outbound logistics, sales and marketing and services) adds incremental value to the final product or service by transforming inputs to outputs. The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management.
How value chain activities are carried out determines costs and affects profits.Most organisations engage in hundreds, even thousands, of activities in the process of converting inputs to outputs. These activities can be classified generally as either primary or support activities that all businesses must undertake in some form. According to Porter (1985), the primary activities are: Inbound Logistics – involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs, Operations – are all the activities required to transform inputs into outputs (products and services). Outbound Logistics – include all the activities required to collect, store, and distribute the output, Marketing and Sales – activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase, and Service – includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered.
Secondary activities are: Procurement – is the acquisition of inputs, or resources, for the firm, Human Resource management – consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel, Technological Development – pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm’s transformation of inputs into outputs, Infrastructure – serves the company’s needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management. The strength of the Porter’s Value Chain Analysis is its approach. The Porter’s Value Chain Analysis focuses on the systems and activities with customers as the central principle rather than on departments and accounting expense categories. This system links systems and activities to each other and demonstrates what effect this has on costs and profit. Consequently, it (Value Chain Analysis) makes clear where the sources of value and loss amounts can be found in the organization. The value chain framework can be seen as one of two dimensions in maximizing corporate value creation the other being market/industry/ attractiveness, for which another one of his models is used, i.e.
, competitive advantage. (valuebasedmanagement.net)One of the main drawbacks assigned to Porter’s theories and model is that it does not follow the pace of technology and its influence on development of competitive advantage. However not all technology has to be disruptive (Magretta, 2012, & Mekic, Ensar & Mekic, Emina. 2014). Therefore, two questions will make clear-cut on this issue: to what extent does it invalidate important traditional advantages and to what extent can executives embrace the technology without major negative influence on their business? (Magretta, 2012, & Mekic, et al.
2014). Finally, there is a misconception that Porter sees industry structure as being static and fixed but that is not the case he was originally suggesting (Robert J. Allio, 2012, & Mekic, et al. 2014)2.2Empirical review2.2.1Organizational performanceOrganization performance refers to how well an organization achieves its market-oriented goals as well as its financial goals. Performance of the organization can be measured by looking at the quality of product or service, competitiveness of the supply chain, customer satisfaction and profitability.
Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes: (a) financial performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc.
) In recent years, organizational performance measurement has received much attention from researchers and practitioners (Gunasekaran et al., 2004 & Barasa, 2016). Measuring the performance of supply chain and their member firms is critical for identifying underlying problems and keeping end customers satisfied in today’s highly competitive and rapidly changing market place (Wisner et al., 2010 & Barasa, 2016).
According to Neely (2005) measuring performance is a necessary tool to highlight the extent to which organizational objectives were achieved and to provide information necessary to improve various processes and activities within the organization. Clark (2004) and Barasa (2016) asserts that measuring performance means both quantifying and assessing the level of customer satisfaction and comparing the organization with other organizations starting from different market criteria. Reducing costs through streamlined, simplified rules and processes should result in improved public SCM.2.2.
2Customer Relationship Management (CRM) Practice.Baltacioglu et al. (2007) defined Customer relationship management as maintaining and developing long-term customer relationships by developing information continuously and understanding what customers want. A number of researchers identified interactive management, understanding customer expectations, empowerment and personification as ways of effectively implementing CRM.According to Chandrasekaran (2010), the purpose of a supply chain network is to serve the ultimate customer of the focal organization.
The focal organization orients itself to synchronize its role agents and processes to serve its customers. Customer delight happens only if the product meets the customers satisfaction in terms of time, quantity, responsiveness, and cost. Aspects like warranty, service support, and parts availability are critical.
Customer retention and upgradation would be the main objectives of the focal organization, which could happen only if financial, informational, and product flows are managed effectively. The interdependence among processes and role agents must be well-appreciated and synchronized for effective and efficient supply chain network. Customer relationship management from supply chain management perspective must take care of responsiveness, reliability, and flexibility. These could be possible only when the focal organization seamlessly integrates all processes.A process view of supply chain is discussed by Chopra et al. (2007). According to Chopra, A supply chain is a sequence of processes and flows that take place within and between different supply chain stages and combine to fill a customer need for a product. There is the cycle view, according to which the processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive supply chain stages.
Alternatively, the push/pull view divides the processes in a supply chain into two categories, depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push).2.2.3Supplier Relationship Management Practice.Traditional procurement frequently assumes an arm’s length approach, whereby services are purchased and managed through a tightly specified service contract. But many public services are there to address messy problems (services that are intimately involved in people’s lives).
This complexity requires a more agile and flexible approach to service delivery, based on the development of long term partnerships, or Supplier Relationship Management (SRM)(Manning,2012).Relationships with customers have always been considered to be important in business management. In the past, relationships with suppliers were regarded as insignificant in the overall performance of organizations. Buyers played suppliers off against one another and frequently switched suppliers. Relationships between buyers and suppliers were cordial, but often adversarial (Naude, Micheline & Ambe, Intaher & Kling, René, 2013). Maintaining positive relationships with suppliers is increasingly being recognized as a critical factor in sustaining a competitive advantage (Stevenson 2009 & Naude et al; 2013).
Most businesses view their suppliers as partners; in other words, they seek a stable relationship with comparatively few suppliers that are able to provide high-quality supplies, sustain delivery schedules and remain flexible in relation to changes in specifications and delivery schedules. Monczkaet al (2009) Purchasing and supply chain management today reflects a growing emphasis concerning the importance of suppliers. Supplier relationships are shifting from an adversarial approach to a more cooperative approach with selected suppliers. The activities that the modern purchasing organization must put in place are quite different from just a few years ago. Supplier development, supplier design involvement, the use of full-service suppliers, total cost supplier selection, long-term supplier relationships, strategic cost management, enterprise wide systems (Enterprise Resource Planning, or ERP) and integrated Internet linkages and shared databases are now seen as ways to create new value within the supply chain. Purchasing behaviour is shifting dramatically to support the performance requirements of the new era.
Selecting a supplier of goods and services can be a complicated and costly process, which should be carefully prepared and executed in order to engage the most appropriate provider. It is however, only part of the story. Once the contract has been awarded or the order placed, it is essential to establish a mutually beneficial working relationship between the supplier and customer, in order to successfully deliver the service or goods. Supplier management allows an institution to select its suppliers carefully and negotiate the best prices for the goods and services that it needs. Supplier management includes procurement, contract development and administration, transportation and logistics, strategic planning and supplier evaluation. Supplier management also enables the purchasing organisation to monitor supplier performance; ensure that it attains its objectives; and minimize pre-tender stage violations. (SCMR Report, 2015).Strategic sourcing helps supply chain managers to plan, manage and develop the supply base; and to create an understanding of the categories of goods and services in government’s spending portfolio, their intended use and the sources of supply.
This helps to identify the leverage points in the procurement areas/categories where government has buying power or influencing powers to change the industry, develop appropriate sourcing strategies, reduce costs and increase the benefits and value of the service or commodity to government. (SCMR Report, 2015).The public sector frequently underestimates how important supplier management is, and there is limited understanding about how public-sector decisions and actions affect the overall business environment. On the other hand, suppliers often take advantage of the current weak public sector SCM environment. This is evident in high prices paid for goods and services; contracts that favour certain suppliers; collusion; unethical behaviour; non-performance; and poor-quality products and services rendered. To overcome these problems, the public sector needs to develop long-term strategic supplier relationships. (SCMR Report, 2015). Reducing costs through streamlined, simplified rules and processes should result in improved public SCM.
James (2010), Flow in the supply chain is two-way. Many consider supply chains only in terms of forward flow from suppliers to end users. So, SCM definitions take on a limited sourcing–logistics flavour. For the physical processes, this is largely true.
But, supply chain design must include backward flows for product returns, payments and rebates, replenishment orders, repair, and other reasons. Government agencies have passed regulations that assign companies responsibility for the ultimate disposal of the products they sell. For example, electronics manufacturers have to take back and recycle parts and materials from the products that they have sold.2.2.4Integrated Information Communication Technology Practice.According to Bhuvaneswari (2018) a key aspect of supply chain management is the ability to make strategic decisions quickly based on accurate data, and this requires an efficient and effective information system.
Information is vital for a supply chain to function. Without information relayed at right time to the right place, there are no purchase orders, no shipment managers and no payments and the supply chain shuts down. Supply chain management is based on the exchange of substantial quantities of information among the buyer, supplier and carrier to increase the efficiency and effectiveness of supply chain.According to Eric, (2018) Bain & Company’s research on what consumer’s value shows how people benefit in multiple ways from digital technology. It reduces cost, saves time, integrates sources of information, connects, organizes, informs and provides access to previously hard-to-find data and expertise; all “elements of value” that have direct application to both consumer and B2B purchasing and product usage. (Lambert-Cooper 2000; &Pohja2004) Firms in business-to-business markets are embedded in a complex network of relationships with suppliers, customers as well as a number of other stakeholders and thus, the network is embedded in and interacting with its environment.
Several research studies report a positive effect of the use of IT on firm performance (e.g. Zhang et al., 2016 &Evelyne et. al, 2017).The current quality of SCM data is poor, and there is no uniform SCM data management system. Efficient data management and market intelligence can contribute very significantly to government’s SCM ability; to suppliers’ ability to respond to government’s needs; and to transparency, accountability and oversight. The value of systematising SCM and at the vital role that technology can play (SCMR Report, South Africa, 2015).
Intra-organizational dynamic capabilities are examined from the perspectives of organizational innovativeness, organizational learning, and knowledge sharing. With organizational innovativeness, members within enterprises tend to learn, share information, and take reasonable risks in using ICT (Al-Qirim, 2007& Damacline, 2014) to improve competitive advantages and grasp market opportunities (Bock et al., 2005 &Damacline, 2014). Organizational innovativeness positively affects new technology acceptance (Bock et al., 2005 &Damacline, 2014). The use of information technology (IT) plays a central role in enabling supply chain integration.
It allows supply chain partners to increase the volume and complexity of information exchange. It also enables real-time information sharing, which increases visibility in the extended supply chain (Prajogo and Olhager, 2012). Li et al. (2009) argue that IT use only indirectly affects performance through the use of supply chain integration tactics, even though most researchers (e.g.
Leuschner et al., 2013) include IT use as part of the supply chain integration measure. The latter makes it difficult to understand the specific role of IT use, either as an enabler for information exchange or as an enabler for operational integration, in supply chain integration tactics. Therefore, the second aim of this research is to clarify how IT use interacts with these different and interrelated integration tactics in the supply chain. As part of this, this study also evaluates whether IT use upstream and downstream in the supply chain results in similar operational advantages for the focal firm. Vanpoucke, (Evelyne Vereecke Ann &Muylle Steve, 2017).IT use strengthens the exchange of information in the buyer-supplier relationship through more efficient processes and consequently can reduce lead time (Drnevich and Croson, 2013).
While e-commerce focuses on supporting downstream supply integration processes such as sales and distribution, e-procurement assists smoothen the processes for order fulfilment and supplier selection. In addition, e-collaboration should help the focal firm to improve integration processes concerning capacity planning, demand forecasting, and inventory management processes for both suppliers and customers. In summary, the literature notes that IT used in a supply chain context can create a competitive advantage when combined with other supply chain integration tactics.
(Evelyne et. al, 2017).A big push for collaboration is technology-based. To many practitioners, the term “collaboration “is a code word for “information sharing” which is in turn code for “new systems.
” So, supply chain information applications, a category of software products, have emerged to support collaboration. These products enable sharing of transaction data like production and inventory data, online auctions, marketplaces for buying and selling, and scheduling production and delivery along the supply chain James, (2010).Monczka et al (2009) Regardless of the type of information technology platform or software used supply chain systems should capture and share information across functional groups and organizational boundaries on a real-time or near-real-time basis. This may involve transmitting the location of transportation vehicles using global positioning systems (GPSs), using Internet-based systems to transmit material requirements to suppliers, or using bar code technology to monitor the timeliness of receipts from suppliers.
Figure 2. SEQ Figure_2. * ARABIC 1 SCM SystemSource: Monczkaet al (2009)As organizations continue to face increasing cost pressure, they are relying more on systems to do the work of people, which in turn increases the productivity of these workers.
Productivity is a critical metric of performance that is driving companies to integrate new information systems. Executives are now very careful to develop solid business case and justify the benefits and payback of investments in new supply chain systems. The primary drivers of these new e-SCM systems include; (1) internal and external integration, (2) globalization and communications, (3) data information management, (4) new business processes, (5) replacement of legacy or obsolete systems, and (6) strategic cost management (Monczka et al 2009).New forms of servers, telecommunication and wireless applications, and software are enabling companies to do things that were once thought impossible. These systems raise the accuracy, frequency, and speed of communication between suppliers and customers, as well as for internal users.
Information systems must be able to effectively filter, analyse, and mine an abundance of data to enable effective decision-making. Users must be able to extract from databases the information they need to make better supply chain decisions. This is often achieved through data warehouse systems (described later in the chapter) and associated decision support systems.According to Chandrasekaran (2010), the trilogy of technology, process, and people plays a key role in improving supply chain effectiveness. The advance in technology and its successful deployment for business, process improvements driven by quality measures and enhanced people’s skills due to technological development contribute to the efficiency of supply chain.
The impact of e-SCM is measured by the depth and breadth of connectivity existing among channel members. Integrative IT tools such as XML, Java, integrated operating platforms, component-based e-business applications, wireless communications, and others, are now providing leading-edge companies with the real-time information and interoperable networks necessary to eliminate channel inventory buffers and improve customer service Ross (2003). 2.2.5Capacity and Resource Management Practice.The performance of people in the supply chain domain has been improving dramatically. The competencies of people are critical at the operating and planning levels, and the advances in technology have enhanced their output (Chandrasekaran, 2010). A supply chain network uses resources of various kinds: manufacturing resources (machines, material handlers, tools, etc.
); storage resources (warehouses, automated storage and retrieval systems), logistics resources (trucks, rail transport, air-cargo carriers, etc.), human resources (labour, scientific and technical personnel), and financial (working capital, stocks, etc.). The objective is to utilize these assets orresources efficiently so as to maximize customer service levels, minimize lead times, and optimize inventory levels.
Biswas and Y Narahari (2004). The rising costs of resources, transport, energy and waste disposal are becoming key issues for businesses as this additional expenditure is directly affecting financial performance. In contrast, reducing costs through being resource efficient has a positive impact on the bottom line and reduces the risks to your business, customers and supply chain.A recent study conducted by Supply Chain Management Review observes that, although 44% of the companies have functions installed specifically for supplier and customer collaboration, managers do not really understand how to achieve supply chain collaboration. Moreover, the managers indicate that supply chain collaboration is seen as a risky undertaking. Most initiatives fail or appear less promising than expected – and only about 35% of the supply chain collaboration initiatives turn out to be moderately successful.
(Vanpoucke,2017).Public sector SCM tends to operate at low levels of professionalism and competence, with assigned little organisational status and not seen as a value driver. A mind-set shift is needed so that SCM is located amongst government entities’ highly strategic functions to transform and create value through its activities. Organisational change, capacity building and real-time operational support are critical to achieving this. Also important are improvements in category and goods management so that goods and services are provided on time, in the right quantities and of good quality. (SCMR Report, 2015).Lu (2011), outlines three significant levels of capacity planning when it comes to designing a supply chain and they include, the company’s internal capacity planning and management, supply chain’s internal capacity planning and the supply chain ‘s capacity responsiveness to the market demand changes, which can be understood as capacity synchronisation between the supply chain and the customer demand. He further notes that supply chain managers must resort to effective means of managing capacity synchronisation and ultimately the supply chain responsiveness by developing flexible capacity and flexible structure through outsourcing, vertical disintegration, virtual networks and sharing and pooling resources.
According to Monczka et al (2009) the key to the success of any company is the quality of its employees. This is certainly true for purchasing, the various kinds of knowledge and skills demanded of today’s supply chain professional. The knowledge and skills that purchasing and supply chain professionals require are different from just a few years ago. Recent research indicated that the top five knowledge areas for purchasers of the future were (1) supplier relationship management, (2) total cost analysis, (3) purchasing strategies, (4) supplier analysis, and (5) competitive market analysis. Effective supply chain management requires close collaboration with suppliers as well as internal coordination with engineering, procurement, logistics, customers, and marketing to coordinate activities and material flows across the supply chain. These relationships with key suppliers become the basis for purchasing strategies.According to Russell and Taylor, (2011) In the workplace, kaizen means involving everyone in a process of gradual, organized, and continuous improvement. Every employee within inorganization should be involved in working together to make improvements.
Employees are most directly involved in kaizen when they are determining solutions to their own problems. Employees are the real experts in their immediate workspace. In its most basic form, kaizen is a system in which employees identify many small improvements on a continual basis and implement these improvements themselves. Employees identify a problem, come up with a solution, check with their supervisor, and then implement it. This works to involve all employees in the improvement process and gives them a feeling that they are really participating in quality improvement, which in turn keeps them excited about their jobs. Nothing motivates someone more than when they come up with a solution to their own problem. Small individual changes have a cumulative effect in improving entire processes, and with this level of participation improvement occurs across the entire organization.
No company-wide quality management program can succeed without this level of total employee involvement in continuous improvement. Gaining access to the right skills will require a sound human-resources strategy that includes internal development of high-potential individuals, recruiting talent from other functional groups or companies, and hiring promising college graduates. This occurs to satisfy one primary objective—ensuring that qualified participants are available to support purchasing and supply chain requirements.2.2.6Government Policy2.2.6.
1.Public Procurement and Disposal Act (PPDA), 2015.The public procurement system in Kenya has reformed to an orderly and legally regulated system governed by the PPDA, 2015 which took effect from 7th January 2016. Prior to this, in Central Government it was governed by PPDA 2005, Treasury Circulars from 1969, then the Supplies Manual of 1978, before the promulgation of the Exchequer and Audit (Public Procurement) Regulations, 2001, (Juma ,2009 & Kagendo, 2012). All the aforesaid reform initiatives were geared towards improving the public procurement system by enhancing accountability and transparency with the continued high-level mismanagement of public funds and corruption all in the effort to boost confidence in public expenditure.
The PPDA, 2015 guidelines are adopted by state owned corporations and generally provide provisions that guide the process of inventory management, assets management, contract performance and disposal of assets. It involves a two-stage tendering, design competition, electronic reverse auction; force count, competitive negotiations and framework agreement.The PPDA, 2015 clearly describes ethical values that are supposed to be observed by procurement professionals in the public sector that are supposed to be observed by procurement professionals in the sector and clearly states the manner in which suppliers need to conduct their activities to secure public tenders. Regulations that are articulated in the PPDA are strictly adhered to by any party in the procurement contract with the intention of controlling public funds.18.104.22.168Public Procurement Oversight Authority (PPOA)The PPDA sets-up the Public Procurement Oversight Authority (PPOA), whose primary role is to ensure that procurement procedures established under the Act are adhered to. In doing this, the PPOA has to guide, set-up standards, and train procurement entities and persons, as well as advise government on policy issues. Currently the PPOA role is: Monitoring implementation of procurement policies to ensure that SME are accorded opportunities to participate in public procurement, building capacities of procurement personnel to ensure that procurement is carried out effectively and efficiently, building suppliers ‘capacity so that they are better able to transact business within the public sector Sound legal framework in place with the enactment of the PPDA and Regulations, Kenya today has in place a sound and comprehensive legal framework for public procurement with a clear hierarchical distinction. The PPDA clearly establishes the procurement methods to be applied, advertising rules and time limits, the content of tender documents and technical specifications, tender evaluation and award criteria, procedures for submission, receipt and opening of tenders, and the complaints system structure and sequence. The PPDA and Regulations cover goods, works and services for all procurement using national funds. Both documents are published and widely distributed within government.2.3Summary of Research GapsBased on most of the research papers reviewed, they only focus on the whole supply chain-based concept as a typical model which includes supplier, manufacturers, distributors and retailers and do not address their company’s supply chain. To be sure, in a world of value webs, the essential goals of traditional supply chain management do not go away. But they are often augmented by new imperatives—like learning, agility and renewal. Collaboration is an addition to, not a replacement of traditionally more closed contractual arrangements. Clear commitments to meet rigorously monitored standards and service-level agreements will remain critical. But to claim the benefits of an increasingly fluid and interdependent value web, organizations should surround their contracts with trust; build on transactions and one-time deals to cultivate long-term relationships and mutual learning, combine the power of control with the potential of co-creation, make sure that defined, fixed standards do not create barriers to valuable innovation and co-evolution, and not only leverage leading practices, but also aim to create “next practices.”Today’s consumers want a customized product without any rationale for delays or expense. Modern consumers are and always will be the driving forces behind the supply chain. Since a typical supply chain entity may view competition as a bad thing. On the contrary, Consumers know competition helps to keep businesses on their toes, such as reducing costs and improving the quality of a product. Consequently, since the driving force behind competition has changed, the viewpoint on competition must also change. The modern supply chain faces pressures from all over the globe. The topics of sustainability are not just ideals, but government-mandated requirements in some areas. For the research industries, compliance includes extensive reports, maintenance of facilities to ensure the safety of employees and consumers, tons of testing, and extensive research. Therefore, the whole process begins again by focusing on the consumer and how a supply chain entity is able to maintain trust with the consumer, which reflects in this case through maintaining transparency. Unfortunately, the need for transparency, trust, and compliance measures leads to another focus on collaboration, better, more reliable, and collaborative software.Obviously, competitors are in business to stay ahead of the curve and continue production. The demand for collaborative supply chain management is growing from foreign lands to domestic production. Supply chain entities need to understand how these totems of collaboration are continuing to place collaboration at the heart of maintaining efficient supply chain management processes and extending today’s capabilities to meet the demands of tomorrow.2.4Conceptual FrameworkINDEPENDENT VARIABLES DEPENDENT VARIABLES 076835Integrated Information and technology Supplier relationship managementCapacity and resource managementGovernment policyPPDA; (2015)Customer relationship managementEnhanced service deliveryImproved decision makingReduced lead timeReduced costsIntervening VariableSUPPLY CHAIN MANAGEMENT PRACTICESORGANIZATIONAL PERFORMANCE00Integrated Information and technology Supplier relationship managementCapacity and resource managementGovernment policyPPDA; (2015)Customer relationship managementEnhanced service deliveryImproved decision makingReduced lead timeReduced costsIntervening VariableSUPPLY CHAIN MANAGEMENT PRACTICESORGANIZATIONAL PERFORMANCEFigure 2. SEQ Figure_2. * ARABIC 2 The Conceptual FrameworkFigure 2. SEQ Figure_2. * ARABIC 2 The Conceptual FrameworkSource: Researcher, (2018)Supply Chain Management (SCM):American Production and Inventory Control Society (APICS), dictionary defines SCM as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. SCM is described by the Chartered Institute of Procurement and Supply (CIPS) as the mechanics of the supply chain itself, defining how the goods and services are produced or delivered. The emphasis is on the management of relationships and the flow of the goods and services. Value is created within this area through the formation of a competitive workspace, with a drive to maximise supply and demand. Performance measurement is a part of SCM (BIFM, 2015).Customer Relationship Management (CRM): Baltacioglu et al. (2007) defined Customer relationship management as maintaining and developing long-term customer relationships by developing information continuously and understanding what customers want. Customer relationship management from supply chain management perspective must take care of responsiveness, reliability, and flexibility.Supplier Relationship Management (SRM)SRM is concerned with the management of the supplier relationship. CIPS explains that this “involves managing the interfaces between organisations supplying goods and/or services to an organisation in order to maximise their value”. It is about building relationships that work towards supporting an “effective, financially beneficial environment” (BIFM2015).Integrated Information Communication Technology (ICT): Is the ability to make strategic decisions quickly based on accurate data, and this requires an efficiently and effectively. Supply chain management is based on the exchange of substantial quantities of information among the buyer, supplier and carrier to increase the efficiency and effectiveness of supply chain. According to Chandrasekaran (2010), the trilogy of technology, process, and people plays a key role in improving supply chain effectiveness. The advance in technology and its successful deployment for business, process improvements driven by quality measures and enhanced people’s skills due to technological development contribute to the efficiency of supply chain.Capacity and Resource Management: according to Biswas and Y Narahari (2004). A supply chain network uses resources of various kinds: manufacturing resources (machines, material handlers, tools, etc.); storage resources (warehouses, automated storage and retrieval systems); logistics resources (trucks, rail transport, air-cargo carriers, etc.); human resources (bioscientific and technical personnel); and financial (working capital, stocks, etc.). The objective is to utilize these assets or resources efficiently so as to maximize customer service levels, minimize lead times, and optimize inventory levels. Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard et al. (2009) organizational performance encompasses three specific areas of firm outcomes: (a) financial performance (profits, return on assets, return on investment, etc.); (b) product market performance (sales, market share, etc.); and (c) shareholder return (total shareholder return, economic value added, etc.) Reducing costs through streamlined, simplified rules and processes should result in improved public SCM.CHAPTER THREERESEARCH METHODOLOGY3.1Research designResearch design is a plan that describe how, when, and where data are to be collected and analyzed for research objectives to be achieved (Cooper and Schindler 2011). A descriptive research will be used in this study. According to Mugenda & Mugenda, (2003). A descriptive research design is a scientific method of investigation in which data is collected and analysed in order to describe the current conditions, terms or relationships concerning a certain specific phenomenon which is the concern for this study. The study will specifically tries to ascertain the SCM practices among states corporations in Kenya and seeks to show their relationship with firms’ performance. Thus, descriptive research design will be appropriate.3.2Study Area and Target PopulationAccording to Mugenda (2008) statistical population refers to the set of all elements in the universe of interest, while Kombo and Tromp (2006) wrote that, it refers to the larger group of individuals, objects or items from which the sample is taken for measurement. The target population for this study will be 3518 employees from KEMRI HQs. The data collection will be from three sections of research and development staff, technical staff and support staff. The target population will include: Medical Doctors, Principal Investigators, Research Officers, Assistant Research Officers, Lab Technologists, Clinical Officers, Nurses, Nutritionists, Counsellors, Admin Staff and Program Managers.3.3Sample and the Sampling Techniques The study will adopt stratified random sampling to get the sample for the study. In this technique, a population is stratified first and then randomly selects the final subjects proportionally from the different strata. Stratification is done when members of a target population are divided into homogeneous groups before sampling. After the members have been categorized into homogenous groups, they are randomly picked using the simple random sampling. This process is preferred because no element of the population is left out. The strata are collectively exhaustive and present the researcher with a higher statistical precision compared to simple random sampling. This is because the variability within the subgroups is lower compared to the variations when dealing with the entire population.The sample size was arrived at using the following formula: n=NC2C2+N-1e2Nassiuma, (2000).(note: n=sample size; N=population size; C=Coefficient of variation which is ? 30%; e=margin of error which is fixed between 2-5%). The study sample was calculated at 25% coefficient of variation and 5% margin of error (Nassiuma, 2000). Twenty five percent coefficient of variation was used to ensure that the sample was wide enough to justify the results being generalized for KEMRI. Higher coefficients of variation will not be used to avoidvery large samples due to limitation of funds. Five percent margin of error will be used because the study was an ex-post facto survey, whereby the independent variables could not be manipulated hence necessitating relatively higher margin of error. The sample size for this study will therefore be 75 respondents distributed as shown in equations below;n=1306*0.2520.252+1306-10.052=25Equation SEQ Equation * ARABIC 1 : Research and development staff samplen=1306*0.2520.252+1306-10.052=25Equation SEQ Equation * ARABIC 2 : Technical staff samplen=906*0.2520.252+906-10.052=25Equation SEQ Equation * ARABIC 3 : Support staff sampleTable 3. SEQ Table_3. * ARABIC 1 Sample SizeDepartment Population Sample sizeResearch &Development 1306 25Technical Staff 1306 25Support staff 906 25Totals 3518 75Source: Researcher, (2018)3.5Data Collection Procedures Primary data and secondary data collection methods will be both used in the study. The primary data will be collected using questionnaire that relate to specific objectives of the study. The questionnaire will have structured and unstructured questions to ensure data collection validity and reliability that ensured deep insight on the statistical variables. The structured questions will be presented in the Likert scale for respondents’ measurement on their opinions on various aspects of SCM practices on States Corporation’s performance as guided by the study objectives. Secondary data that involves past reports such as annual budget data, progress reports and internal audits reports will have key information helpful to the research study will be used. This data will be obtained through desk review of the reports at KEMRI.3.5.1Validity of Research InstrumentAccording to (Mugenda and Mugenda, 2003) validity is the accuracy and meaningfulness of inferences, which is based on the research results. It is a degree to which results obtained from the analysis of the data actually represents the phenomenon under study. According to Orodho (2005) validity is the degree to which a test measures what it purports to measure. The two most important forms of validity are internal and external validity. Internal consistency will be measured with Cronbach’s alpha test, and a reliable instrument should yield at least Cronbach alpha coefficient of 0.700. Content validity will be used to measure extent to which measuring instrument provides adequate coverage of the topic as per the set themes in the study. To enhance validity, the researcher will expose the instruments to experts in research for judgment.3.5.2Reliability of research instrumentsAccording to Mugenda and Mugenda, (2003) reliability is a measure of the degree to which a research instrument yields consistent results or data after repeated trials. To ensure reliability of the instrument, a pilot study will be carried out. The researcher will also conduct a pilot study whereby inappropriate questionnaire items will be discarded, rephrased or merged. The piloting will be done at KEMRI Kericho.3.6Data Analysis The study will use both quantitative and qualitative method of data analysis using statistical package for social science (SPSS) version 21. Quantitative analysis will be used on data collected through questionnaires. Collected data will first be coded and then quantitatively analysed according to statistical information derived from the research questions. The coded data will be then tabulated and presented for statistical analysis by calculating the percentages, means and variance on each variable. Data results will be presented in tables and charts. The secondary data will be subjected to a multilinear regression equation model to test the relationship between the dependent variable and the independent variables of supply chain management practices. Multiple regression analysis is used when one is interested in predicting a continuous dependent variable from a number of independent variables. It shows the percentage of the total variation of the dependent variable that can be explained by the independent variables and this is assessed using the coefficient of determination (R2) which is used for judging the explanatory power of the linear regression of dependent variable on independent variables. R2 is a measure of the goodness of fit of the regression line to the observed sample values of dependent and independent variables. The R2 can range from 0.0 to 1.0, with 1.0 showing a perfect fit that indicates that each point is on the line (Carver et al., 2009 & Barasa, 2016). The multilinear regression equation model will test the relationship between the dependent variable, Organizational Performance and the independent variables of customer relationship management X1, supplier relationship management X2, integrated information technology X3, Capacity & resource management X4. The multilinear regression equation will assume the following form:?=? 0+?1X1+?2X2+?3X3+?4X4+?1X1+?Where: ? = Represents the dependent variable; organizational performance of KEMRI.?0 = Constant (Slope) of the ModelX1 = customer relationship management practiceX2 = supplier relationship management practiceX3= integrated information technology practiceX4= Capacity & resource management practice ?1, ? 2, ? 3, ? 4= are the regression coefficients? = Error term or the random disturbance termQualitative analysis will be carried out from the unstructured questions and the secondary data. The results of analysis will be evaluated and comparison made in interpreting the research findings. The deductions will be used to make conclusions and recommendations of the study.3.7Ethical Considerations.According to Neuman (2000), ethics in research involves what is right and not right in conducting research and is an integral part of any research study. Ethics in research will be considered in the whole research process: from the nature of the problem being investigated; the reporting of the theoretical framework; the context of the research; the data collection instruments to be used; the data collection methods; the research subjects; the procedures of data analysis; and data reporting. To enhance ethics in the study, the researcher will first seek permission for conducting the research from KEMRI, Kisii University and The National Commission for Science, Technology & Innovation before collecting data. The researcher will notify the respondents of the aims, methods, anticipated benefits and potential hazards of the research. The researcher will ensure that no individual becomes involved in the exercise before they give their informed consent. No pressure or inducement of any kind will be applied to encourage anybody to participate. All respondents will be assured of their confidentiality.REFERENCESAbushaikha I. (2014). 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(2011), The impact of internal integration on relationship commitment on external integration, Journal of Operations Management,http://www.kemsa.co.ke/supply-chain-services/ retrieved on 28/08/2018SCOR Model(n.d.), http://www.supply-chain.org) retrieved on 05/09/2018Value chain (n.d) http://www.valuebasedmanagement.net/methods_porter_value_chain.html retrieved on September 5, 2018APPENDIX I: QUESTIONNAIREThis survey examines various aspects of supply chain management practices in your organisation. Your participation is critical to the success of the study. All responses will be kept confidential and will not be traceable to individual respondent. There are no right or wrong answer to the following questions. The researcher is only interested in your assessment of your organisation’s activities.You will be asked questions concerning the company’s current business practice. If you are unable to complete the questionnaire yourself, please entrust the task to another who is knowledgeable about supply chain management practices and organizational performance. The questionnaire should take about 20 minutes to complete. Kindly spare a few minutes from your busy schedule to complete the questionnaire as your participation is of value to this study. Thank you in advance for your cooperation.SECTION A.Please tick ? at the appropriate box/column or write in your answers where appropriate1 Please indicate Your department?Production ?Quality Control ?Technical Support ?Logistics ?HR ?Finance ?Marketing ?Sales ?Research &Development?Sourcing ?Supply Chain ?Other(s), please specify ————————– Numbers of Employees in the department?Less than 50?50 – 100?100 – 250?250 – 500?More than 500What is your designation at KEMRI??Supply chain manager?Procurement manager?Procurement officer?Warehouse manager? Administration ? Finance? Accounts? Research and Development ?Warehouse officer?Logistics manager?Logistics officerOther please specify…………………………………….What is your working experience in this position??Less than 1 year ?1 – 2 years ?2 – 3 years ?3 – 4 years ?4 – 5 years ?5 – 10 years ?10 – 15 years ?More than 15 years Highest level of education attained?No formal education ?Primary education ?Secondary education ?Tertiary/college education ?University Education ?Others (Specify)………………………….……………………………………………….What is your professional qualification? ………………………………………Years of operating experience at KEMRI??Less than 1 year?1 – 5 years?5 – 10 years?10 – 15 years?15 – 20 years?More than 20 yearsWhat kind of SCM knowledge have you acquired? ?Basic ?Advanced ?No knowledgeDoes KEMRI’s Supply Chain have any strategic alliance?Yes ?No?If ‘Yes’, please choose organizations belonging to the strategic alliance ? Supplier ? Transporter ? Manufacturer ? Distributor ? Wholesaler ? Retailer ? Customer Other(s), please specify ……………………………………………..Is KEMRI’s Supply Chain all within the same country?Yes ?No?If ‘No’, which organization(s) is (are) out of your country? ? Supplier ? Transporter ? Manufacturer ? Distributor? Wholesaler ? Retailer ? Customer ? End-user Other(s), please specify………………………………………………..Has KEMRI incorporated supply chain management practices in its management practices Yes ?No ?If yes, which of the following supply chain management practices have been incorporated in your supply chain management practices?? Customer relationship Management practices? Supplier Relationship Management practices? integrated information system practices? capacity and resource management practicesWhat is your level of agreement on your awareness of supply chain management practices…………………………………………………………………SECTION B: SUPPLY CHAIN PRACTICESThe following questions are about how KEMRI has been implementing supplychain management practices. In general, kindly identify your agreement on the followingpractices.CUSTOMER RELATIONSHIP MANAGEMENTPlease indicate your level of agreement on the following statements based on your experienceworking with KEMRI. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeCustomer Relationship Management practices 1 2 3 4 5KEMRI shares a sense of fair play with its customers KEMRI frequently interacts with customers to set its reliability, responsiveness, and other standards KEMRI has frequent follow-up with its customers for quality/service feedback KEMRI frequently measures and evaluates customer satisfaction KEMRI frequently determine future customer expectations KEMRI facilitates customers’ ability to seek assistance from it KEMRI frequently evaluates the formal and informal complaints of its customers KEMRI periodically evaluates the importance of its relationship with its customers KEMRI solicits customers’ inputs in our products design KEMRI conduct training to its customers Customer satisfaction criterion is used to evaluate the performance of our KEMRI KEMRIs engagement with its customers enhances corporate image Creating new products and services with minimal environmental impact B. SUPPLIER RELATIONSHIP MANAGEMENT1 Does KEMRI have a specific strategy for supplier alliances (or the broader base of suppliers)?Yes ?No ?2If yes, what are determining factors? ? The location of the supplier? The openness of the supplier? The personal relationship? The willingness of the supplier to collaborate? The reputation of the supplier? HistoryOthers please specify……………………………………………..Do KEMRI work with some suppliers closer together?Yes ?No ?If yes, what are the trade-offs involved in these decisions?? Type of information shared? Structural ways of working together? Technology ? Human assets ? Investments ? specific procedures? Other Please specify………………………………………Please indicate your level of agreement on the following statements based on your experienceworking with KEMRI. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeSupplier Relationship management Practices 1 2 3 4 5KEMRI rely on few dependable suppliers KEMRI rely on few high-quality suppliers KEMRI consider quality as number one criterion in selecting suppliers KEMRI strive to establish long term relationship with its suppliers KEMRI helps its suppliers to improve their product quality KEMRI has continuous improvement programs that include its key suppliers KEMRI include its key suppliers in its planning and goal setting activities KEMRI actively involves its key suppliers in new product development processes KEMRI certifies its suppliers for quality KEMRI regularly solves problems jointly with its suppliers A recognition of mutual interdependence between the buyer and supplier A high level of trust between the organisations A high-level frequency of both formal and informal communications Co- operative attitudes Mutual benefits Shared risks Problem-solving, ‘win-win’ negotiating styles with an emphasis on managing total costs Long-term business arrangements Open sharing of information by multifunctional teams Vendor certification and defect-prevention approaches Adhering to predetermined payment conditions. C. INTEGRATED INFORMATION COMMUNICATION TECHNOLOGYPlease indicate your level of agreement on the following statements based on your experienceworking in this company. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeIntegrated Information Communication Technology 1 2 3 4 5KEMRI shares its business units’ proprietary information with its trading partners KEMRI informs its trading partners in advance of changing needs KEMRI trading partners share proprietary information with your organisation KEMRI trading partners keep your organisation fully informed about issues that affect its business KEMRI trading partners share business knowledge of core business processes with your organisation KEMRI and its trading partners exchange information that helps establishment of business planning KEMRI and its trading partners keep each other informed about events or changes that may affect the other partners Information exchange between KEMRI and its trading partners is timely Information exchange between KEMRI and its trading partners is accurate Information exchange between KEMRI and its trading partners is complete Information exchange between KEMRI and its trading partners is adequate Information exchange between KEMRI and its trading partners is reliable Firms in our supply chain establish more frequent contact with each other Integration provides Databases for collaboration D. CAPACITY AND RESOURCE MANAGEMENTPlease indicate your level of agreement on the following statements based on your experienceworking in this company. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeCapacity and Resource Management 1 2 3 4 5KEMRI strives to reduce time wastage in operations KEMRI has continuous quality improvement program KEMRI produces only what has been ordered by customers (pull production system) KEMRI pushes suppliers for shorter lead times KEMRI streamlines ordering, receiving and other paper work from its suppliers KEMRIS’s products are modular designed KEMRI production process modules can be rearranged so that customization can be carried out latter at distribution centres KEMRI delays final product assembly activities until customer orders have actually been received KEMRI’s goods are stored at appropriate distribution points close to customers in the supply chain Chief executives and senior management demonstrate Commitment KEMRI has Demonstrated commitment to Sustainability of staff KEMRI has Demonstrated making the commitment public KEMRI has Demonstrated commitment organisational sustainable policies, strategies and procedures. KEMRI has Demonstrated commitment benchmarking and progression KEMRI has Demonstrated commitment prioritising KEMRI has Demonstrated commitment sustainability in the procurement process KEMRI has Demonstrated commitment self-assessment of Performance SECTION C: ORGANIZATIONAL PERFORMANCEPlease indicate your level of agreement on the following statements based on your experienceworking in this company. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeORGANIZATIONAL PERFORMANCE 1 2 3 4 5KEMRI’s supply chain members have common, agreed to goals for supply chain management KEMRI’s supply chain members are actively involved in standardizing supply chain practices and operations KEMRI extends its supply chain beyond its customers/suppliers KEMRI’s ability to respond to and accommodate demand variations, such as seasonality. Ability to respond to and accommodate the periods of poor manufacturing performance such as machine breakdown. Ability to respond to and accommodate the periods of poor supplier performance Ability to respond to and accommodate the periods of poor delivery performance Ability to respond to and accommodate new products, new markets or new competitors Ability to treat suppliers as partners Ability to treat Customers as partners Ability to establish performance measures for the supply chain practices Effective involvement and utilization of the entire work force Please indicate your level of agreement on the following statements based on your experienceworking in this company. The rating is from 1=Extremely Disagree,2= disagree, 3= uncertain, 4=Agree and 5=Extremely AgreeSCM practices on organizational performance 1 2 3 4 5Inventory reduction Personnel reduction Order management improvement Financial cycle improvement Information technology cost reduction Procurement cost reduction Revenue increase Transportation/logistics cost reduction Maintenance reduction Information visibility New/improved processes Customer responsiveness Integration of information Standardization Flexibility Globalization Supply/demand chain integration Dismantling inefficient legacy systems Information visibility THANK YOU FOR YOUR TIME AND COORPERATIONAPPENDIX 11: THESIS WORKPLANTask Duration Jan Feb March April May June July Aug Sept Oct Nov DecSupervisor meeting 1 day Topic identification 5 days Draft proposal 4 months Correction on draft proposal 14 days Submission of proposal 1 day Defense of proposal 1 day Correction and final submission of proposal 7 days Data collection (secondary data) 21 days Data analysis and presentation 20 days Project review and proof reading 5 days Submission of final project 1 day APPENDIX III: PROPOSED PROJECT BUDGETITEM/NO ITEM AMOUNT1. Preparation of Research Proposal 2,0002. Airtime and Internet 4,5003. Stationery 3,0004. 16GB Flash disks 1,0005. Photocopying 2,0006. Binding (7 books @ 100) 7007. Printing 3,0008. Travelling Expenses 8,0008. Miscellaneous expenses 2,500Grand Total 26,700APPENDIX IV: TARGET POPULATION BREAKDOWNDepartment Sections under each Department Population Sample sizeResearch & Development Medical DoctorsPrincipal Investigators Co – Principal Investigators Senior Research OfficerResearch Officers Assistant Research Officer Research Legal Officers 1306 25Technical Staff Clinical OfficersNursesLaboratory Technologists Marketing Officers Production OfficersMedical Engineers Electrical Officers Monitoring and Evaluation Officers Program Managers 1306 25Support staff Administration Finance, Grants & Accounts Human Resources & Customer ServiceInformation & TechnologyProcurement and Logistics Auxiliary 906 25Totals 3518 75