Inbound Logistic Strategies, Quality Management System And Sustainable Procurement Performance among Kenya Tea Development Agency Factories in Kenya

Abstract

Companies involved in a supply chain must coordinate their operations through adoption of inbound logistics strategies so as to enhance business performance. Kenya Tea Development Agencies factories have adopted inbound logistics strategies as well as quality management system with the aim of turning around their performance and hence reduce on operational costs leading to sustainable procurement performance. However, despite this, the factories still experience wide variations in earnings. The drop in earnings and high variation in tea bonuses among factories has been blamed on operational cost at the factory and the quality management system being adopted by these factories. This points out that although inbound logistics have been adopted, they have not resulted in sustainable procurement performance. The purpose of this study was to establish the relationship between inbound logistic strategies, quality management system and sustainable procurement performance among Kenya Tea Development Agencies Factories in Kenya. The study specifically sought to determine the relationship between suppliers sourcing strategy, transportation strategy, material handling strategy, reverse logistic strategy and sustainable procurement performance and determine the moderating effect of quality management system on the relationship between inbound logistics strategies and sustainable procurement performance among Kenya Tea Development Agencies factories. The study was anchored on the resource-based view theory, total quality management, strategic choice theory and stake holder theory. The study adopted correlation research design. The target population of the study was 188 staff drawn from the 16 Kenya Tea Development Agencies managed Region 5 factories. A census method was used to collect data from the production managers, information communication technology managers, procurement Managers, leaf base managers, factory unit managers and directors using a structured questionnaire. The validity of the instrument was determined through professional judgment and reliability was determined using Cronbach's alpha coefficient where the alpha coefficient of 0.865 was actualized. The findings revealed that suppliers sourcing strategies had a positive significant correlation with sustainable procurement performance (r = 0.545, p < 0.05); transportation strategy (r = 0.352, p < 0.05); material handling strategy (r = 0.078, p > 0.05); reverse logistic strategy (r = 0.254, p < 0.05); and that quality management system (r = 0.526, p < 0.05). The results showed that R Square changed from 30.8% to 41.2% as a result of the moderator effect of quality management system and that changed was significant. The study recommends that factories sourcing strategies need to aligned to organizational sustainability goal, develop procedures and policies on material handling with sustainability goal well outlined, manage return flows in accordance with organizational objectives so as to prevent wastage and minimize environmental costs in an ethical and ecological way as well as employ quality management system by following total quality concept's guiding principles in the management and purchase of material resources. The study may contribute to the existing body of knowledge on inbound logistic strategies and sustainable procurement performance by creating new knowledge based on the research findings. The results of this study may advice on policy formulation in relation to inbound logistics strategies and sustainable procurement performance. Other researchers may benefit from the literature on inbound logistics and sustainable procurement performance since the current study provided a basis for further studies.