EFFECT OF SUPPLY CHAIN OPERATIONS REFERENCE MODEL METRICS ON PERFORMANCE OF PLASTIC AND RUBBER MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Procurement and Logistics

Companies are on the run to remain operational and competitive in today’s dynamic market. This has necessitated the need for adopting techniques and models such as SCOR which aligns the overall organizational operations focusing on key supply chain aspects of order fulfillment, flexibility, costs and cycle time metrics. Plastic and rubber manufacturing firms have in the recent been affected with economic and legislative issues but is nevertheless bouncing back as a result of employing models such as SCOR. This study pursued to establish the effect of Supply Chain Operations Reference Model Metrics on performance of Plastic and rubber manufacturing firms in Nairobi City County. The study was undertaken in Nairobi City County involving plastic and rubber manufacturing firms encompassing the procurement officers from those companies. Theories reviewed include; theory of constraints, complex adaptive systems theory, transaction cost theory and resource based view theory. Cross sectional survey research design was used. Further, purposive sampling technique was employed so as to arrive at the sample size. During data collection, primary data was collected using questionnaire which was made up of open and close ended items. The study findings established that Plastic and rubber manufacturing firms in Nairobi City County deliver products to customers at their preferred locations and ensures that the delivered goods are in their best possible deliverable state; suppliers of production input for the companies are accommodative to technological changes making it possible for them to avail the supplies on a relatively short notice. Moreover, companies have arrangements with their suppliers to keep at minimum the sourcing related costs necessitated by existing policies that are undertaken to cater for risk management costs. It was concluded that the supply chain model metrics have significant impact on the performance of plastic and rubber manufacturing firms. It was recommended that keen implementation and improvement of each specific metric need to be undertaken for great performance improvement to be realized by manufacturing firms. Since accuracy is paramount in delivery, firms should ensure promptness in meeting delivery timelines through advancement in order handling and procedures. On their side, suppliers should be ready to avail goods on short notice according to the urgency of the need.

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