Open AccessRELATIONSHIP BETWEEN HEDGING RISK MANAGEMENT STRATEGY AND SUPPLY CHAIN PERFORMANCE AMONG MANUFACTURING COMPANIES IN KENYA
Author(s) -
Dr.David Kiarie,
Patrick Karanja Ngugi,
Kennedy Ogollah
Publication year - 2017
Publication title -
international journal of supply chain and logistics
Language(s) - English
Resource type - Journals
ISSN - 2520-3983
DOI - 10.47941/ijscl.155
Subject(s) - supply chain , business , supply chain management , lead time , activity based costing , order (exchange) , quality (philosophy) , population , stock (firearms) , operations management , sample (material) , industrial organization , marketing , finance , economics , engineering , mechanical engineering , philosophy , demography , epistemology , sociology , chemistry , chromatography
Purpose: The purpose of this study was to determine therelationship between hedging risk management strategy and supply chain performance among manufacturing companies in KenyaMethodology:The study adopted a cross-section survey of descriptive nature .The target population comprised of the 412 manufacturing companies within Nairobi County that were registered members of KAM. The fisher et al formula for calculating the sample size was used to yield a sample size of199. Data was collected using questionnaires and analyzed using statistical package of social sciences (SPSS) version 21 as a tool of analysis.Results: The study findings revealed that the companies that increased buffer stock at various levels in the supply chain. Increasing buffer stock at various levels in the supply chain resulted to decreased lead time, improved quality and reduced cost. Results also showed that most of the companies ‘conducted reduce order cycle times. Conducting reduce order cycle times resulted to decreased lead time, improved quality and reduced cost. Further, the results revealed that most of the companies shared supply chain costs with partners. Sharing supply chain costs with partners resulted to decreased lead time, improved quality and reduced cost.Policy recommendation:the study recommended that manufacturing companies should put in place a risk analysis and evaluation management strategy to enhance supply chain performance. In particular, companies should consider conducting whole life costing of suppliers and also internal quality of suppliers.