SUPPLY CHAIN PRACTICES AND ORGANIZATIONAL PERFORMANCE IN THE AGRIBUSINESS INDUSTRY IN KENYA: A CASE STUDY OF AMIRAN (K) LIMITED

Abstract

ABSTRACT Globally, firms in the agribusiness supply chain have found it increasingly difficult to satisfy customers due to their ever changing demands. Firms must be quick in responding to market demands since customer requirements and market conditions keep on changing. The study examined the effect of inventory management and assessed the effect of collaborative relationships on organizational performance in Amiran (K) Limited. Descriptive research design was used and a census was done involving all the workers in the five departments of Amiran (K) Limited. Both quantitative and qualitative data was gathered and analyzed using quantitative and qualitative procedures. The study found that the organization has adopted inventory management techniques to improve efficiency and the overall performance. The study established that the organization is keen on collaborative relationships with suppliers and is open to sharing information with partners. The findings revealed that inventory management plays a significant role in enabling the organization to enjoy competitiveness and achieve operations efficiency. The study found that collaborative relationships helps the suppliers improve products quality and there is willingness of collaboration in strategic decision making. The study concluded that inventory management has enabled the organization to put in place proper material handling processes and there is a significant influence of collaborative relationships and organization performance. The study recommends that Agribusiness firms should come up with policy frameworks to facilitate the inventory management techniques implementation. Managers should also give special attention to information sharing through collaborative relationships in order to improve organizational performance. Keywords: Agribusiness, Market Demands, Organizational Performance, Supply Chain.