Supply Chain Management Strategies and Performance of Parastatals in Nairobi County, Kenya

Parastatals are central to Kenya’s economic infrastructure and public service delivery. Despite their scale, state corporations have been shown to be fiscally intensive. The general objective of the study is to assess the influence of supply chain management strategies on performance of parastatals in Nairobi County, Kenya (Thuo, & Osoro, 2022). Specifically, the study sought to determine the effect of demand forecasting, inventory management, risk management and distribution strategies on the performance of commercial parastatals in Nairobi County, Kenya. This study was guided by Demand Theory, Economic Order Quantity (EOQ) Theory, Enterprise Risk Management (ERM) Theory and Systems Theory (Nzomo, & Wachiuri, 2023). This study adopted a descriptive research design and unit of observation consisted of 276 key personnel (Procurement managers, Supply chain/logistics managers and Inventory control officers. A sample was chosen through Yamane’s formula to determine 163 sample size. The respondents were chosen with the help of simple random sampling technique (Thuo, & Osoro, 2022). Descriptive statistics, including frequencies, percentages, means, and standard deviations, were used to summarize and present respondents’ demographic information and their perceptions of SCM practices. Inferential statistics comprised of correlation analysis and multiple regression analysis. The results were presented using tables and figures (Nzomo, & Wachiuri, 2023). The study concludes that demand forecasting has a positive and significant effect on performance of parastatals in Nairobi County, Kenya (Nzomo, & Wachiuri, 2023). In addition, the study concludes that inventory management has a positive and significant effect on performance of parastatals in Nairobi County, Kenya. Further, the study concludes that risk management has a positive and significant effect on performance of parastatals in Nairobi County, Kenya (Nzomo, & Wachiuri, 2023). The study also concludes that distribution strategies have a positive and significant effect on performance of parastatals in Nairobi County, Kenya (Nzomo, & Wachiuri, 2023). The study recommends that parastatals in Kenya should strengthen demand forecasting systems by adopting advanced data analytics tools and improving demand planning processes to enhance forecast accuracy and support better organizational performance (Nzomo, & Wachiuri, 2023). The study further recommends that parastatals should implement effective inventory management practices through proper monitoring of stock levels, establishment of efficient reorder point systems, and regular assessment of inventory turnover rates to minimize stock shortages and operational inefficiencies.