Influence of Supply Chain Management Strategies on Performance of Medical Supply Chain Organisations in Kenya

Abstract

Institutions within the medical supply sector have consistently faced substandard supply chain results because of failure of timely deliveries on the part of suppliers failing to quickly respond to deliver medical shipments. This indicates the procurement role having inadequacies as a key component of an organization since it does not deliver on maximized effectiveness and a reduction of costs based on poor supply chain management plans. A critical purpose of the study was the intention to identify influence of supply chain management strategies on performance of medical supply chain organisations in Kenya. More so, the analysis deals with the degree information integration impacts on Organization performance; to evaluate the impact of warehousing on performance; to examine the impact of outsourcing on performance; and to evaluate the influence of lean supply chain on performance of medical supply entities across Kenya. Direction will through be relying on the resource-based theory as well as the supply chain constraints principle. The analysis will adopt a descriptive study approach; with the targeted size comprising of 30 medical supply entities. The study participants included 2,529 staff of pharmaceutical supply chain entities within Kenya. Determination of the sample group was by Yamane’s concept that led to to a group of 345 participants. Accessing the participants was by stratified and simple random sampling approaches. Towards indicating dispersion and central tendency, standard deviation and respectively, with the inferential statistics being analysed by multiple regression and correlation analysis. The study findings reveal that performance of medical supply organizations in Kenya was significantly related with supply chain information integration (p < 0.05), warehousing (p < 0.05) and outsourcing. Despite this, the association among differentiation strategy and performance was insignificant at p > 0.05 but only significant at p <0.1). It was also found that while lean supply chain had a negative influence on performance (t = -.528, p >0.5) information integration, warehousing and outsourcing had positive influence on performance (information integration: t = 16.461, p <0.05; warehousing: t = 19.671, p <0.05; outsourcing: t = 15.528, p <0.05). The result of these outcomes is that the leadership across medical supply organizations in Kenya need to adopt information integration, warehousing, and outsourcing, which would   positively contribute to performance. Medical supply organizations in Kenya should continue emphasizing on supply chain strategies. The outcomes of the study may assist organisations in drawing plans or improving existing strategies governing supply chain management across institutions.