Inventory Management as a Driver of Supply Chain Performance in Agricultural Value Chains: A Lean Theory Perspective from Kenya

Health supply chain is a key pillar to sustainable development of a country. Majority of the global population depends on proper supplies and services to access quality health care. Thus, inventory management establishes itself as backbone of health supply chain delivery. However, performance of public health facilities has been fluctuating over the past years because of risks whose outcome affect procurement, thus, undermining the capability functionality of the health sector. This study sought to investigate the effect of inventory management practices on performance of public health facilities in Nairobi City County. The guide specific objectives applied for this study comprised automated systems, inventory levels management, and inventory budgeting and just-in-time inventory. Theories related to the study were economic order quantity, lean theory, contingency theory and transactional cost analysis. Additionally, a conceptual framework was adopted to show the causal relationship of the independent variables automated systems, inventory levels management, and inventory budgeting and just-in-time inventory with the performance of public health facilities as the dependent variable. A cross-sectional survey research design was adopted for the study applying both the qualitative and quantitative approaches. The target population was the 290 staff of the level four public health facilities that are seven in number within the county. Stratified random sampling technique was used to pick a sample size of 180 respondents which represented the procurement, stores, medical and hospital administrative functions. Both primary and secondary data was used, with the primary data obtained through questionnaires that was administered by the researcher. Quantitative data was also be analyzed using Statistical Package for Social Sciences version 23 with descriptive statistics presented in figures and tables. Further pilot testing was undertaken before main study to assist in identification of probable weakness of the research instrument through data validity and reliability test. The Cronbach’s Alpha value was greater than 0.7 which indicated that the questionnaire met the minimum acceptable threshold. The study findings showed that inventory management practices namely automated systems, inventory levels management, inventory budgeting and just-in-time inventory significantly influence the performance of public health facilities in Nairobi City County, Kenya. The study concluded that performance was predicted to improve for every unit increase in these practices. The study further recommends that public health facilities should implement automated systems to reduce the need for manual inventory tracking and management. Some recommendations include through assessing needs, choosing the right technology, systems implementation, user training, and need identification. This will ensure improved inventory management and improve performance of public health facilities.

The logistics and supply chain management industry faces increasing complexity in managing various components and stakeholders. Unmanned aerial vehicles (UAVs), commonly known as drones, have gained popularity in logistics and supply chain management due to their ability to deliver goods, collect data, and perform various tasks. This research examines the potential of drones in enhancing the sustainability of agricultural supply chains and aims to explore how drones can improve efficiency and reduce the environmental impact of supply chain operations in agriculture. It focuses on analyzing the benefits and challenges associated with using drones in agricultural logistics, inventory management, last-mile delivery, monitoring, and inspection. The study highlights the significant contributions of the Lean approach in utilizing drones for supply chain management in agriculture. The findings indicate that drones optimize lastmile delivery, providing timely and efficient transportation while reducing costs and overcoming challenges faced by traditional vehicles. They also enhance inventory management by providing real-time information, leading to cost reduction and improved supply chain operations. Furthermore, drones play a crucial role in crop monitoring, facility inspections, and precision agriculture, improving overall productivity, reducing environmental impact, and promoting sustainability in the agricultural sector. This research provides valuable insights into the potential applications of drones in agricultural supply chains. By understanding the benefits and challenges associated with their use, stakeholders in the logistics and supply chain management industry can make informed decisions and develop strategies to incorporate drones into their operations. Ultimately, the integration of drones in agricultural supply chains can contribute to a more sustainable and efficient industry.

In local and globalized markets, warehouses are crucial supply chain nodes. This study aimed to investigate the effect of warehousing on supply chain performance: A case of Inyange Industries Ltd. The goals were to evaluate how inventory management, warehouse capacity building, and material handling affects supply chain performance in Inyange Industries Ltd. This research experimented with three different theories: Just-in-time, Lean, and Triple-A supply chain. The population of this study were 105 staff members of Inyange Industries Ltd. Therefore, census was conducted because the population size is affordable and the researcher can be able to contact all the respondents. Quantitative data were analyzed using inferential research methodology in this study. Questionnaires were used to gather primary data, which was then analyzed. Data analysis was carried out using the Statistical Package for the Social Sciences (SPSS), and descriptive and inferential statistics were used to show the study's results. According to the research, supply chain performance is positively and significantly affected by both automated and manual material handling. Mechanical material handling, on the other hand, improves supply chain performance, but not much. Inyange Industries' supply chain performance is influenced by the material handling systems to the tune of 19.3%, as shown by the modified R2 value of 0.193. According to the research, supply chain performance is positively and significantly affected by inventory counts, warehouse management systems, and inventory organization. A 0.967 adjusted R^2 value suggests that 96.7% of the variation in Inyange Industries' supply chain performance is explained by the inventory management techniques. According to the research, supply chain effectiveness is positively and significantly impacted by warehouse demand planning, design, and management. Warehouse capacity planning techniques at Inyange Industries account for 95.4% of the variation in supply chain performance, as shown by the modified R2 value of 0.954. The research concluded that material handling, inventory management, and warehouse capacity planning are all important warehouse management measures that significantly impact supply chain performance for the better. The methods used by Inyange Industries Ltd. for managing their warehouses have resulted in an improvement in supply chain performance of 87.2%. The regression coefficients, supported by their t-test values and Beta coefficients, highlight both the significance and strength of relationships between independent and dependent variables. Material Handling demonstrated the greatest impact (β1=0.532, t=8.556, p=0.000), followed by Inventory Management (β2=0.379, t=6.147, p=0.000), and Warehouse Capacity Planning (β3=0.172, t=3.268, p=0.002), emphasizing their respective contributions to Supply Chain Performance of Inyange Industries Ltd.'s supply chain. This proved that material handling in warehouse management has a major influence on supply chain performance. Because the p-value was lower than 5%, we may say that the association is statistically significant. The research concluded that both automated and human material handling should get additional funding. To maximize efficiency in stock-taking as well. Previous studies have looked at a variety of organizational factors that affect performance of supply chains. To further understand how warehouse management strategies affect overall performance, more research is needed.

Unreliable supply systems have plagued the provision of an uninterrupted supply of life-saving medicines in many developing countries, with antiretroviral (ARV) medicines having the worst repercussions. To identify the inventory management practices used, evaluate the supply chain performance, and determine the challenges affecting inventory management of ARV medicines in public hospitals. The study used a descriptive cross-sectional design, gathering snapshot data on inventory management practices happening in all the 8 public hospitals across Nyamira County. Data collection was done using structured questionnaires, key informant interviews, checklists and data from the national health information system. The response rate was 97.3% for the questionnaires and 100% for the key informant interviews. The prevailing inventory management practices were: use of scheduled inventory control model (80.95%), forecasting demand using previous consumption data (100%), keeping accurate and updated stock records for each commodity (92.31%), having essential logistical data in reports (100%), including safety stock (61.54%) when ordering and keeping ARV medicines in dedicated stores (75%). With the exception of order lead time (17.98 days), the other supply chain performance metrics namely stock out rate (52.12%), stock wastage rate (43.2%), and reporting rates (70.84%) were found to be deficient. The challenges mostly affecting inventory management included inadequate staff and training, lack of proper storage, and unreliable supply of medicines. Inventory management practices were according to the recommended best approaches despite various challenges. The supply chain performance metrics evaluated, with the exception of order lead time, were all found to be unsatisfactory owing to the high stock out rates, below par reporting rates and high stock wastage rate due to expiries discovered. Adoption of an electronic inventory system, use of data for decision making, dedicated storage of ARV medicines, and inclusion of buffer stock, are some strategies to improve inventory management.

7 - Food supply chain planning, auditing and performance analysis

BackgroundIn order to deliver quality health services, safe, effective, affordable and quality medicines are needed. Inappropriate storage conditions, poor infrastructure and poor medicine management practices may lead to poor medicines quality, stock damage and expiration.ObjectiveAssess storage and inventory practices to improve the medicine supply chain in South Sudan.MethodologyThe study used a descriptive cross-sectional design. The study population comprised 12 Health Centers in Juba where inventory management was practiced. Both questionnaire‐guided interviews for staff self‐assessment, and observer assessment were used by the researcher. With regard to storage and inventory management, the researcher collected data on the condition of storerooms with regards to availability of enough storage space, availability of enough storage equipment, and temperature conditions of the medicines stores, among others.ResultsThe study found that store and inventory management practices varied widely in the different health facilities. Hospitals and central medical stores exhibited good or average inventory and storeroom management practices, respectively. The two hospitals and medical stores scored 100% in the elements in the assessment of storerooms and stock management. Some primary health care centers exhibited good inventory and store room management practice, whilst others were rated as average or poor. Most of the elements assessed scored 37% in storeroom assessment while elements assessed for inventory management scored less than 75%. There was great similarity between the observation assessment and the self-assessment.ConclusionIn conclusion, store and inventory management practices and knowledge of the respondents varied in the different health facilities. Hospitals and central medical stores exhibited good, average and poor inventory and storeroom management practices assessed through self-assessment and observation assessment by the researcher. There was a great similarity between the observation assessment and the self-assessment.
 Rwanda J Med Health Sci 2021;4(2): 310-320

PurposeThe current research aims to investigate the relationship between supply chain (SC) processes maturity and SC performance in the context of an emerging market (i.e. Morocco). Based on the SCOR model, the authors propose and test a thorough conceptual framework in which information systems moderates the relationship between SC processes maturity and performance. The effects of firm age and size are also taken into account.Design/methodology/approachBased on data collected from 175 top and middle managers using self-administered questionnaires, the authors empirically assessed the conceptual model using a partial least squares (PLS) estimation.FindingsThe study's findings demonstrate that SC processes maturity has a significant effect on SC performance. Second, information systems act as a moderator in the relationship between SC maturity and performance, e.g. the impact of supply chain processes maturity on supply chain performance measures is stronger in the presence of information systems support. Ultimately, firm size and age were found to have no significant impact on supply chain performance.Practical implicationsThe study's findings help SC managers to better understand how SC maturity contributes to SC performance. A firm effectively executing maturity factors in its SC processes is more likely to achieve a better SC performance. The authors also established the key role of information systems in strengthening the impact of SC maturity on performance. SC managers should capitalize on the use of information systems to achieve superior SC performance.Originality/valueThe present research bridges a gap pertaining to the impact of supply chain maturity on SC performance, particularly in emerging markets. It is the first of its kind to investigate the influence of SC maturity on SC performance the context of emerging markets.

The company always tries to improve competitiveness by improving company performance. Using upgraded digital technology makes it easier for internal and external companies to determine business strategies quickly and precisely. This study surveyed expedition companies in East Java, as many as 104 companies with the criteria of having a transportation fleet. Data collection using questionnaires and dissemination in collaboration with the Association of Express Delivery Service Companies, Post and Logistics Indonesia (ASPERINDO). Research respondents consist of employees or unit leaders who are competent in the substance of the survey. Data analysis uses the partial least square (PLS) method. The results showed that digital technology positively and significantly impacts supply chain collaboration, inventory management, and supply chain resilience. The company's ability to build supply chain collaboration impacts improving inventory management optimization, supply chain resilience, and supply chain performance. Furthermore, inventory management with the ability to control inventory well and on-time delivery does not impact supply chain resilience. However, good inventory management has a positive impact on supply chain performance. Likewise, shipping companies, by increasing supply chain resilience, have an impact on supply chain performance. The results of this study contribute to the theory of supply chain management and resource-based view. The practical contribution enlightens the middle and top management on the importance of digital technology with the suitability of investment and benefits obtained in improving supply chain performance.

This paper studies an inventory management problem faced by an upstream supplier who is in a collaborative agreement, such as vendor managed inventory (VMI), with a retailer. A VMI partnership provides the supplier an opportunity to manage inventory for the supply chain, in exchange for point-of-sales (POS) and inventory level information from the retailer. However, retailers typically posses superior local market information and, as has been the case in recent years, are able to capture and analyze customer purchasing behavior beyond the traditional POS data. Such analyses provide the retailer, access to market signals that are otherwise, hard to capture using POS information. We demonstrate and quantify the implication of the fi nancial obligations of each party in VMI that renders communication of such important market signals as non-credible. To help institute a sound VMI collaboration, we propose a learn-and-screen dynamic inventory mechanism for the supplier to effectively manage inventory and information in the supply chain. The proposed mechanism combines the ability of the supplier to learn about market conditions from POS data (over multiple selling periods) and to dynamically determine when to screen the retailer and acquire his private demand information. Inventory decisions in the proposed mechanism serve a strategic purpose in addition to their classic role of satisfying customer demand. We show that our proposed dynamic mechanism signi cantly improves the supplier's expected pro t and increases the efficiency of the overall supply chain operations under a VMI agreement. In addition, we determine the market conditions in which a strategic approach to VMI results in signi cant pro t improvements for both rms, in particular, when the retailer has high market power (i.e., when the supplier highly depends on the retailer) and when the supplier has relatively less knowledge about the end customer/market compared to the retailer.

Lots of companies try to remain competitive through effective supply chain management. To deal with the supply chain effectively, several strategies based on information sharing have been developed. Vendor Managed Inventory (VMI) is one of them that is often used. The objective of this study is, first, to simulate the performance of supply chains comparing the results of ideal homogeneous supply chains with those having diverse levels. Then, the ability of VMI to upgrade the overall supply chain performance is analyzed. The model developed is composed of one supplier, three manufacturing firms separated by three transport companies and a final customer. A Make to Stock (MTS) supply chain, which uses the Reorder Replenishment Point (ROP) for managing batch production and the (s, S) policy for inventory control are considered. Two VMI implementations between different pairs of tiers are analyzed. Four company performance classes are used to characterize supply chain members. Results show that there are supply chain behavioral differences according to the position of the lower ranked enterprise. It is more suitable to place the most effective company directly upstream of the end customer. Furthermore, VMI introduction seems more interesting for suppliers than for customers. Finally, the advantages of VMI appear to be stronger when the overall supply chain is less effective.

Supply chain networks have grown in complexity and size due to increased globalization leading to a variety of challenges and opportunities for improvement. Optimizing inventory levels and adjusting replenishment policies have significant effects on the operational performance and profitability of supply chains. Vendor Managed Inventory (VMI) is a mutually beneficial arrangement between supplier and buyer, where the supplier is responsible for making inventory and replenishment decisions based on buyers' inventory status. Potential benefits of VMI include reducing inventories, enabling information sharing, eliminating safety stock, and reducing purchasing related costs across the supply chain. In today's supply chains, VMI operations face critical challenges related to data integrity, transparency, traceability, and single point of failure due to its centralized architecture. Blockchain technology is a distributed ledger that ensures a transparent, safe, and secure exchange of data among supply chain stakeholders. The advantages of adopting blockchain technology for VMI operations in a supply chain include decentralized control, security, traceability, and auditable time-stamped transactions. In this paper, we present a blockchain-based approach using smart contracts to transform VMI supply chain operations. We propose a generic framework using Ethereum smart contracts and decentralized storage systems to automate the processes and information exchange and detailed algorithms that capture the interactions among supply chain stakeholders. The smart contract code was developed and tested in Remix environment. We present cost and security analysis incurred by the stakeholders in the supply chain. Adopting a blockchain-based solution to VMI operations in supply chains is economically viable and provides a streamlined, secure, trusted, and transparent mode of communication among various stakeholders.

PurposeThis article sheds light on the missing links concerning the study of using integrated enabling technologies toward sustainable and circular agriculture supply chains by examining the available literature and proposing future research possibilities.Design/methodology/approachThe relevant literature was researched through online databases such as Scopus, Web of Science, Academic Search Premier, Emerald, IEEE Xplore, Science Direct, World Scientific Net and Springer-Link Journals, covering a period from 1999 to 2020. A systematic literature review based on 75 papers analyzed the integration of the concepts of enabling technologies, sustainability, circular economy and supply chain performance in agriculture supply chains.FindingsIt was identified that enabling technologies and agriculture supply chains alone have been explored further than integrated enabling technologies, sustainability, circular economy, supply chain performance and agriculture supply chains. Enabling technologies and agriculture supply chains' main findings are: enabling technologies have been studied to improve food safety, food quality and traceability in agriculture supply chains. The main results regarding integrated enabling technologies, sustainability, circular economy, supply chain performance and agriculture supply chains are: Internet of Things and information communication technology play an important role in addressing food security, traceability and food quality, which help achieve sustainable development goals.Originality/valueThis review study provides 13 research questions to underpin future trends regarding integrated technologies' application in agriculture supply chains for circular and sustainable growth.

Supply chain environmental risks are pivotal situational factors that significantly influence the intricate relationship between a business’s supply chain agility, supply chain resilience, and its ultimate supply chain performance. This study aims to explore the interplay between supply chain agility, supply chain resilience, and supply chain performance, while also investigating the moderating effect of supply chain environmental risks. Data analysis was conducted using hierarchical regression based on a questionnaire survey involving 416 companies in Taiwan’s manufacturing supply chain. The findings reveal several key insights. Firstly, supply chain agility has a positive influence on supply chain resilience, highlighting the importance of a flexible and responsive supply chain to handle challenges effectively. Secondly, supply chain resilience plays a vital role in determining supply chain performance, underscoring its significance in maintaining operational efficiency and effectiveness. Furthermore, the study identifies that supply chain environmental risks can act as a positive moderator in the relationship between supply chain agility and supply chain resilience. In other words, when faced with environmental risks, companies with higher supply chain agility can leverage this capability to reinforce their supply chain resilience, leading to improved supply chain performance. Additionally, the results shed light on the mediating role of supply chain resilience between supply chain agility and supply chain performance. This suggests that a resilient supply chain acts as an intermediary mechanism through which the positive effects of supply chain agility translate into enhanced overall performance. Given the uncertain and turbulent market environment today, these findings emphasize the importance of adopting supply chain agility and supply chain resilience as indispensable business strategies. Therefore, enterprise leaders and managers should proactively implement measures to enhance these aspects of their supply chain to effectively navigate and overcome environmental risks, ultimately driving supply chain performance.

PurposeExploring ways to acquire, sustain and improve competitive positions in supply chains through information sharing, supply chain visibility, collaboration and agility have been essential for scholars and practitioners. Basing on the relational view, resource based view and the extended resource based view, this study assesses the critical role of information sharing in supply chains through emphasizing its effect on supply chain visibility, collaboration, agility and supply chain performance. Particularly, the study proposes that information sharing, supply chain visibility, collaboration and agility collectively have crucial direct and indirect influences on supply chain performance which lead to superior gains, competitiveness and flexibility.Design/methodology/approachThe study adopted a survey research design, a quantitative approach and partial least square structural equation modeling (PLS-SEM) in making data analysis and interpretations due to its suitability for predictive research models.FindingsThe results indicate information sharing positively and significantly influenced supply chain visibility, collaboration, agility and performance. Supply chain visibility presented significant effects on collaboration, agility and performance, while supply chain collaboration and agility had significant impact on supply chain performance. The study findings connote that information sharing is key to enhancing competitive gains and superior supply chain performance.Originality/valueThe study is among the few to probe on how information sharing as a variable interacts with supply chain visibility, collaboration, agility and performance. Although, information sharing has received a lot of attention in supply chains, this study is among the first to capture the study variables in a single model and thus, exposes the vital need for information sharing in improving supply chain performance seeing that it ensured significant and robust impacts on the study variables.

The purpose of the study was to investigate the role of effective buyer supplier relationship on supply chain performance in Kenya. The study objectives were to identify how lead time, quality, cost and employee morale affects effective buyer supplier relationship on supply chain performance in Kenya. The researcher adopted descriptive research design and census sampling technique. A target population of 56 and a sample of 56 respondents was selected. Data was collected by the use of a semi structured questionnaire that used both closed and open ended questions. Data was coded and then analyzed descriptively using Microsoft Excel and the results presented in tables, pie charts and graphs. From the findings 80% of the respondents agreed that lead time affected buyer supplier relationship on supply chain performance, 57.1% said that cost affected buyer supplier relationship on supply chain performance. Majority 90% of the respondents agreed that quality affected buyer supplier relationship on supply chain performance and 53.1% of respondents said employee morale affected buyer supplier relationship on supply chain performance to a very high extent. The researcher concluded that customers' expectations were increasing and organizations were prone to more and more uncertain environment. The organization must realize that they must harness the power of technology, effective relation with their supplier to collaborate with their business partners. The researcher recommends that for the organization to remain competitive, it has to offer superior quality goods at the lowest prices possible. The need to minimize product costs makes effective supply chain management vital. The organization should have good relation with the supplier to enhance efficiency. An organization that employs effective supply chain officers is able to achieve efficiency of its operations since only those values adding activities (VAA) are encouraged. This ensures that the organization's processes flow smoothly and output keeps in line with the organization's needs. The employees who are highly motivated works towards achieving the goals of the organization. The organization should ensure that they have competent supply chain staffs who focus on ensuring buyer supplier relationships are met.