Benefits of Supply Chain Management in the Manufacturing Sector

Under vision 2030, Kenya aims to become the provider of choice for manufactured goods in eastern and central Africa. Kenya manufacturing sector has performed dismally over the past two decades contributes about 13 % of the GDP reasons among many include competition from cheap products, inadequate research and development, insufficient management, low capacity utilization and limited technology development. The objective of this study was to survey the extent of implementation of supply chain management (SCM) in the manufacturing sector as they strive to improve their productivity with the view to stay put in this era of global markets competition. The study was conducted in selected manufacturing firms in Nakuru Town. It assessed the components, levels, challenges and benefits of SCM in the manufacturing sector. The research hypotheses were on components, level, challenges, and benefits accruing from implementation of SCM. Mixed methodology (Qualitative and Quantitative) was adopted because it gives a deeper understanding. Since data collection was non-parametric quantitative data was analyzed using chi square test with a level of significance of = 0.05. Simple stratified random sampling technique was used in selecting the manufacturing firms and data was collected, using purposive sampling from participants using questionnaire and interview schedules to obtain qualitative information from top managers, production, marketing, finance and human resource managers, and analyzed using statistical presentation and software systems (SPSS). The results indicated that there are specific components of SCM in the manufacturing sectors that are operating at the recommended SCM levels. There are benefits accruing from SCM amid challenges found in this study. Based on the findings the study recommended management to bring to the attention the awareness of SCM, facilitate identification of components, Levels of SCM in the manufacturing sector. The Kenya manufacturers association should embrace SCM as a modern management concept in the manufacturing sector.