INFLUENCE OF SUPPLY CHAIN COMPLEXITY MANAGEMENT STRATEGIES ON STORES PERFORMANCE OF NATIONAL HOSPITALS IN KENYA: A CASE STUDY OF KENYATTA NATIONAL HOSPITAL

Supply Chain managment

This paper sought to assess the influence of complexity management in the area of supply chain management on stores performance of Kenyatta National Hospital, Kenya. Reducing or eliminating unnecessary complexities in supply chain has been a goal of most of the organizations in the modern era. To achieve this, organizations ought to manage the necessary complexities in their operational systems and prevent any additional unnecessary complexities in the entire supply chain process. In the context of hospitals, to complete the process of reducing the complexities, physical commodities and information about medical products and services typically passes to a variety of different parties, including suppliers, insurance firms, hospitals, distributors, community buying organizations and multiple regulatory agencies. Nevertheless, by fostering flexibility in the supply chain for healthcare, hospitals and medical practices within their enterprise will generate major cost-reducing opportunities. The study therefore addressed the gap by analyzing the influence of supply chain complexity management strategies on stores performance of national hospitals in Kenya. Specifically, the study sought to examine the influence of stock auditing, variety reduction and lean six sigma on stores performance of Kenyatta National Hospital Nairobi, Kenya. The paper was anchored on; resource-based view theory, the theory of empirical control, and the theory of quantities of economic order. A case study approach was used while the target population were 6000 employees of Kenyatta National Hospital Nairobi. A stratified random sampling approach was used in determining the sample size population which was arrived at 154. A questionnaire was used to collect the primary data which was analysed using both descriptive and inferential statistics. The study findings revealed that reporting and communication of fresh strategies employed in controlling stock enhance result achievement from change creativities; stock simplification contributes to reduction of product price and obsolescence risks and that information technology is a key driver for leveraging supply chain complexity in stores performance of national hospitals. In conclusion, supply chain complexity management strategies have significant influence on stores performance of national hospitals in Kenya while variety reduction work to realize the importance of stock standardization leading to reduced paperwork and that much complexity has been managed through involvement of electronic data interchange.

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