Inventory Visibility and Performance of Large Food and Beverage Manufacturing Firms in Kenya
DOI:
https://doi.org/10.58229/jims.v2i2.267Keywords:
Inventory Visibility, Supply Chain Visibility, Firm Performance, Food and Beverage Manufacturing FirmsAbstract
This study aimed to examine the impact of inventory visibility on the performance of large food and beverage manufacturing firms in Kenya. The research grounded the network perspective theory and employed a cross-sectional design. The target population comprised 561 individuals from 187 large-scale food and beverage manufacturing firms in Kenya, with human resource managers as the primary respondents, given their role as custodians of employee records. Using stratified random sampling, a sample of 228 respondents was selected. Data was collected through a structured questionnaire and pilot-tested on 10% of the sample to verify its validity and reliability before full deployment. Data analysis involved both descriptive and inferential statistical methods. The findings indicated that inventory visibility had not been effectively integrated into most firms surveyed. Furthermore, a strong and significant correlation was identified between inventory visibility and the performance of food and beverage manufacturing firms in Kenya. The study concluded that the lack of effective integration of inventory visibility contributed to inefficient inventory management, adversely affecting organizational performance. Accordingly, it is recommended that manufacturing firms enhance their supply chain processes by improving inventory visibility, allowing for more effective tracking of inventory flows to support improved performance outcomes.
References
Alzoubi, H. M. (2021). An Investigation Of The Role Of Supply Chain Visibility Into The Scottish Blood Supply Chain. Journal of Legal, Ethical and Regulatory Issues, 24(1).
Apeji, U. D., & Sunmola, F. T. (2022). Sustainable supply chain visibility assessment and proposals for improvements using fuzzy logic. Journal of Modelling in Management, https://doi.org/10.1108/JM2-08-2021-0181
Aryadoust, V. (2023). The vexing problem of validity and the future of second language assessment. Language Testing, 40(1), 8-14.
Astivia, O. L. O., & Zumbo, B. D. (2019). Heteroskedasticity in Multiple Regression Analysis: What it is, How to Detect it and Solve it with Applications in R and SPSS. Practical Assessment, Research, and Evaluation, 24(1), 1.
Bhattacharya, A., & Singh, P. J. (2018). Antecedents of agency problems in service outsourcing. International Journal of Production Research, 57(13), 4194-4210. doi:10.1080/00207543.2018.1506179
Bichanga, W. O., & Mwangi, A. (2014). Evaluating the effectiveness of supply chain visibility in retail: A case study of Uchumi Supermarkets Limited-Kenya. International Journal of Management Sciences, 2(4), 179-190.
Biggs, J., Hinish, S.R., Natale, M.A. & Patronick, M. (2017), Blockchain: Revolutionizing the Global Supply Chain by Building Trust and Transparency, Newark/New Brunswick, NJ.
Brun, A., Karasosman, H., & Barresi, T., (2020). Supply chain collaboration for transparency. Sustainability 12 (11), 4429. https://doi.org/10.3390/su12114429.
Brusset, X. (2016). Does supply chain visibility enhance agility? International Journal of Production Economics, 171, 46-59.
Busse, C., Schleper, M.C., Weilenmann, J. & Wagner, S.M. (2017), Extending the supply chain visibility boundary: utilizing stakeholders for identifying supply chain sustainability risks, International Journal of Physical Distribution & Logistics Management, Vol. 47 No. 1, pp. 18-40.
Butt, A. S. & Ali, I. (2020), Understanding the implications of belt and road initiative for sustainable supply chains: an environmental perspective, Benchmarking: An International Journal, Vol. 27 No. 9, pp. 2631-2648.
Cameron, J., & Bagchi, P. (2022). A test for heteroscedasticity in functional linear models. TEST, 31(2), 519-542.
Caridi, M., Moretto, A., Perego, A., & Tumino, A. (2014). The benefits of supply chain visibility: A value assessment model. International Journal of Production Economics, 151, 1-19.
Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., Luo, Z., & Roubaud, D. (2020). Upstream supply chain visibility and complexity effect on focal company's sustainable performance: Indian manufacturers perspective. Annals of Operations Research, 290(1), 343-367.
Hackius, N. & Petersen, M. (2017), blockchain in logistics and supply chain: trick or treat?, in Kersten, W., Blecker, T. and Ringle, C.M. (Eds), Proceedings of the Hamburg International Conference of Logistics (HICL), Digitization in Supply Chain Logistics, Hamburg, pp. 3-18.
Hamadneh, S., Pedersen, O., & Kurdi, B. (2021). An Investigation of Supply Chain Visibility's Role in The Scottish Blood Supply Chain. Journal of Legal, Ethical and Regulatory Issues, 24, 1-13.
Hobbs, J.E. (2020), Food supply chains during the COVID- pandemic, Canadian Journal of Agricultural Economics/Revue canadienne dagroeconomie, Vol. 68 No. 2, pp. 171-176
Hofman, W. J. (2020). Supply chain visibility ledger. In Blockchain and Distributed Ledger Technology Use Cases (pp. 305-329). Springer, Cham.
Holcomb, M. C., Ponomarov, S. Y., & Manrodt, K. B. (2011). The Relationship of Supply Chain Visibility to Firm Performance. An International Journal, 12(2).
Holden, R. J., & Karsh, B. T. (2010). The technology acceptance model: its past and its future in health care. Journal of biomedical informatics, 43(1), 159-172.
Kappel, A., Schiele, H., & Buchholz, W. (2020). Coping with rising Supply Chain Complexity: Conceptualizing a Supply Network Map Structure Model to address that challenge. International Journal of Procurement Management, in press. doi:10.1504/IJPM.2020.10025379
Karatzas, A., Johnson, M., & Bastl, M. (2017). Manufacturer-supplier relationships and service performance in service triads. International Journal of Operations & Production Management, 37(7), 950-969.
Kenya Association of Manufacturers – KAM. (2020). Food and Beverage Manufacturing entities. Kenya Association of Manufacturers, Nairobi.
Leończuk D., (2021). Factors affecting the level of supply chain performance and its dimensions in the context of supply chain adaptability. LogForum 17 (2), 253-269, http://doi.org/10.17270/J.LOG.2021.584
Leończuk D., Ryciuk U., Szymczak M., & Nazarko J., (2019). Measuring performance of adaptive supply chains, in: A. Kawa, A. Maryniak (Eds), SMART Supply Network, EcoProduction (Environmental Issues in Logistics and Manufacturing). Springer, Cham, http://doi.org/10.1007/978-3-319-91668- 2_5
Li, Z., Wu, H., King, B., Miled, Z. B., Wassick, J., & Tazelaar, J. (2018, June). A hybrid blockchain ledger for supply chain visibility. In 2018 17th International Symposium on Parallel and Distributed Computing (ISPDC) (pp. 118-125). IEEE.
Musa, A., Gunasekaran, A., & Yusuf, Y. (2014). Supply chain product visibility: Methods, systems and impacts. Expert Systems with Applications, 41(1), 176-194.
Musau, E. G., Namusonge, G., Makokha, E. N., & Ngeno, J. (2017). The effect of inventory management on organizational performance among textile manufacturing firms in Kenya. International Journal of Academic Research in Business and Social Sciences, 7(11), 1032-1046.
Muteshi, D. C., Awino, Z. B., Kitiabi, R. K., & Pokhariyal, G. P. (2018). Firm-Level Strategy, Capabilities and Performance of large food and beverage manufacturing firms in Kenya. International Review of Business Research Papers, 14(1), 19-29.
Muthoni, J. P. & Mose, T. (2020). Influence of supply chain management practices on performance of large food and beverage manufacturing firms in Kenya. International Academic Journal of Procurement and Supply Chain Management, 3(2), 45-62
Mutwiri, I. N., Marendi, P., Riro, G. K., & Ratemo, M. B. (2019). Effects of supply chain visibility on performance of public Health Supply Chains: A Kenyan Perspective. International Journal of Management and Commerce Innovations, Vol. 6, Issue 2, pp: (144-160),
Mwangeka, R. M., & Odok, S. (2020). Supply Chain Visibility and Operational Performance of Logistics Firms in Mombasa County, Kenya. A Dissertation, University of Nairobi, Kenya.
Mwaura, W. J. (2021). The Influence Of Supply Chain Management Strategies On Supply Chain Performance Within The Food And Beverage Industry In Kenya. Dissertation, Strathmore University, Nairobi, Kenya.
Ndanyi, M. (2021, Sept. 22nd). Nzoia Sugar Company insolvent, says Auditor General. The Star Kenya. [Online]. Retrieved from: https://www.the-star .co.ke/news/2021-09-22-nzoia-sugar-company-insolvent-says-auditor-general/
Nooraie, S. V., & Parast, M. M. (2015). A multi-objective approach to supply chain risk management: Integrating visibility with supply and demand risk. International Journal of Production Economics, 161, 192-200.
Pundir, A. K., Jagannath, J. D., & Ganapathy, L. (2019, January). Improving supply chain visibility using IoT-internet of things. In 20 ieee 9th annual computing and communication workshop and conference (ccwc) (pp. 0156-0162). IEEE.
Purwanto, A., & Juliana, J. (2022). The effect of supplier performance and transformational supply chain leadership style on supply chain performance in manufacturing companies. Uncertain Supply Chain Management, 10(2), 511-516.
Ralston, P. M., Blackhurst, J., Cantor, D. E., & Crum, M. R. (2015). A Structure-conductPerformance perspective of How Strategic Supply Chain Visibility Affects Firm Performance. Journal of Supply Chain Management VOL 51 NO.2, 47-64
Singh, R. K. (2015). Modelling of Critical Factors for Responsiveness in Supply Chains. Journal of Manufacturing Technology Management Vol 26 Iss 6, 868-888.
Wang, Y., Singgih, M., Wang, J. and Rit, M. (2019), Making sense of blockchain technology: how will it transform supply chains?, International Journal of Production Economics, Vol. 211, pp. 221-236.
Weisburd, D., Wilson, D. B., Wooditch, A., Britt, C., Weisburd, D., Wilson, D. B. & Britt, C. (2022). Multiple regression. Advanced Statistics in Criminology and Criminal Justice, 15-72.
Wellman, B. & Berkowitz, S. D. (1988). Introduction: Studying Social Structures, in B. Wellman and S. D. Berkowitz (eds.), Social Structures: A Network Approach. Cambridge: Cambridge University Press, 1–14.
Wellman, B. (1988), The Healing Web—Social Networks and Human Survival—Pilisuk M., Parks S. H.. American Journal of Sociology, 93, 1006–8
Wibowo, A., Tjahjono, B., & Tomiyama, T. (2017). Designing Contracts for Aero-engine MRO Service Providers: Models and Simulation. Procedia CIRP, 59, 246-251. doi:10.1016/j.procir.2016.10.124
Williams, B. D., Roh, J., Tokar, T., & Swink, M. (2013). Leveraging supply chain visibility for responsiveness: The moderating role of internal visibility. Journal of Operations Management, 1(1), 543–554.
Žukauskas, P., Vveinhardt, J., & Andriukaitienė, R. (2018). Philosophy and paradigm of scientific research. Management Culture and Corporate Social Responsibility, 121.