Warehousing Operations and Supply Chain Performance in Kenyan Food & Beverage Manufacturing Firms: The Moderating Role of Warehousing Policy Framework.

Abstract

Warehousing policy framework as a business enabler has led to the growth of proficient warehouses as it facilitates firms to collaborate and compete. It provides a criterion for the specific needs of the food and beverages sector to synchronize materials, plan and manage capacities. While practitioners are recommending improvement in warehousing policy framework to enhance performance, there is no standard topology for these for various industries. Thus, presenting a gap to explore the warehousing requirements, procedures and documentations that are necessary for a dynamic food and beverages sector. Therefore, the major purpose of this study was to examine the moderating role of warehousing policy framework in the relationship between warehousing operations and supply chain performance of food and beverages processing firms in Kenya. The study adopted a mixed research design with both qualitative and quantitative approaches. The target population of the study was the 134 food and beverages manufacturing firms in Nairobi County. A sampling frame of this study included a list of the 134 manufacturing companies in Nairobi County that are members of the Kenya Association of Manufacturers. The study utilized simple random sampling. A sample size of 100 was selected with the aid of Yamane 1967 formula. Both primary and secondary data was collected using a questionnaire. The questionnaire was tested pilot at 10 food and beverages manufacturing companies in Kiambu county. These pilot study questionnaires were filled out by warehouse managers. The statistical package for social sciences (SPSS) version 25 was used to analyze the data. Using content analysis, the qualitative data was analyzed. Quantitative data was analyzed using statistical methods involving descriptive and inferential data. A multiple linear regression model was applied to analyze the relationship between the variables. Analysis was also performed on the correlation. In this study, the findings were presented using tables and graphs. Data presentation made use of percentages, frequencies, means and other means of central tendencies. The study revealed that majority of the food and beverages manufacturing firms in Kenya prioritized space optimization, maintaining adequate aisle space, and executing warehouse maintenance under regulatory restrictions. However, many these did not automate or mechanize warehouse workflow, suggesting the need for automation and mechanization technology to improve production and efficiency.