Abstract
Purpose: The study sought to examine the challenges faced in implementing effective supply chain management practices during the distribution of the consumable products in the oil industry in Kenya with reference to Vanoil Energy Limited. The study was to establish how warehousing capabilities, strategic supplier relationships, transportation planning and demand and supply forecasting affect distribution performance of the oil industry. To achieve this, the researcher reviewed both theoretical and empirical literature and proposed the research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions.Methodology: This research study adopted a descriptive research design approach. The researcher prefers this method because it allows an in-depth study of the subject. A census was conducted where all the 70 staff in procurement department were issued with questionnaires. Data was collected using self-administered questionnaires. The data collected was analysed by use of descriptive and inferential statistics. The quantitative data generated was keyed in and analysed by use of Statistical Package of Social Sciences (SPSS) version 22 to generate information which will be presented using tables, charts, frequencies and percentages. Multiple regression models were used to show the relationship between the dependent variable and the four independent variables in this study.Results: The findings of the study indicated that warehousing capabilities, strategic supplier relationships, transport planning and demand and supply forecasting have a positive relationship with effective distribution of consumable products in the oil industry.Recommendations: Finally, the study recommended that companies in the oil industry should embrace supply chain management practices so as to improve distribution performance and further researches should to be carried out in other institutions to find out if the same results can be obtained.
Highlights
Chains have grown more global and interconnected; as a result they have increased their exposure to shocks and increased the frequency of disruptions
The findings of the study indicated that warehousing capabilities, strategic supplier relationships, transport planning and demand and supply forecasting have a positive relationship with effective distribution of consumable products in the oil industry
The study concludes that supplier relationships currently in place at Vanoil Energy Limited were very effective in the distribution of consumable oil products
Summary
Chains have grown more global and interconnected; as a result they have increased their exposure to shocks and increased the frequency of disruptions. Even minor missteps and miscalculations can have major consequences as their impacts spread throughout complex supply chain networks (Woods, 2004). Suppliers and information flows multiply, supply chains are becoming more complex, costly and vulnerable. Oil industry being a multimillion industry, the capital is quite an intensive investment, with a very complex supply chain which has grown more global and interconnected; as a result they have increased their exposure to shocks and increased the frequency of disruptions. Even minor missteps and miscalculations can have major consequences as their impacts spread like viruses throughout complex supply chain networks (Togar, Alan & Wright, 2005)
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