Advanced supply chain planning systems, supplier relationship, supply chain agility and firm supply chain performance among selected manufacturing firms in Nairobi County, Kenya

Abstract

Supply chain performances have been touted as improving the performance of organizations which participates in advance planning system. As a result, managers not only have to re-establish their companies to produce higher-quality products and services, decrease waste, respond rapidly to the market, but also to handle their supply chain performance efficiently. However, supply chain performance has received attention and focused on the adaptation of technology to facilitate supply chain performance, but still significant gaps remain in the literature. Most organizations are faced with an array of challenges as they strive to compete in today’s dynamic global markets. Main aim of the study was to determine the conditional effect of supplier relationship on the relationship between advance planning system, and the supply chain performance via. The study was anchored on positivist paradigm and employed explanatory research design. A target population of 591 manufacturing firms of sample of 233 firms were studied. Questionnaires were used as a method of collecting data. The collected data was analyzed using multiple regression models. Results showed that supply advanced planning system significantly influences supply chain organizational performance positively (β=0.6769,p=0.000 < 0.05). Further, supply chain agility (SCA) significantly affected the supply chain organizational performance (SCOP) with coefficients and the probabilities β=0.2730 (p=0.000 < 0.05). Further, the effect of supplier relationship (SR) on relationship between supply chain advanced planning system (SCAPS) and supply chain organization performance (SCOP) was strongly positive (β=.0600,p=0.0049 < 0.05). The moderated mediation further was positive (β = 0.0451) and significant while mediating role of supply chain agility became insignificant to influence supply chain organizational performance. The difference association between insignificant mediating effect of SCA and significant moderated mediation effect can be attributed to the strong moderating role of SR on the link between supply chain advanced planning and the organizational performance. Meaning the supplier relation is critical player because of its effect. In conclusions that supply chain advanced planning improves performance of the overall value of the supply chain by reducing costs and increasing efficiency with leaner operations. It is incredibly significant for manufacturing firms to enhance supply chain organizational performance of the firms competing in global markets to respond to the competitive challenges they encounter in the industry and leveraging these skills to gain a competitive advantage over other. It is a strategic decision for the manufacturing firms to maintain their long-term effectiveness in variable and movable market conditions and to attach importance to agility to be successful. Agile innovation is expressed as shifts in instruments, procedures and initiatives that enable the creation of a facility or business under uncertain circumstances. Agile manufacturing firms should not only encourage facility to adapt efficiently to consumer requirements but also includes reacting with the unpredictable speed to quickly respond to operations and strategic alliances