Is There a Link Between Supply Chain Risk Management Practices and Power Supply Disruptions Control? Evidence from Kenya

Abstract

The study sought to explore the supply chain risk management practices adopted by the power sector firms in Kenya and their effectiveness in disruptions control within the value chain. In order to satisfy the objectives of the study, a survey was conducted in the three power sector firms in Kenya. Focus being on the key electric power sector value chain players from generation, transmission up to the distribution. The research instrument used was Excel and SAS, descriptive statistics was used by way of mean and the standard deviation to summarize the data and inferential statistics (regression analysis) used to derive the relationship between the practices and disruptions control. The findings revealed that the power sector firms have implemented the supply chain risk management practices albeit to a varying extent. In particular supply contingency planning by way of having in place a backup supply in the critical yet disruption prone categories, adoption of capacity reservation contracts and suppliers’ disruption historical background checks had not been afforded due regard. In addition, it was established that the power sector firms have suffered supply chain disruptions, the major once being those associated with stock outages. On a moderate scale, catastrophic disruptions such as fire outbreak, IT systems breakdown and environmental disruptions have been experienced. Finally, the study affirmed that there exist a statistically significant relationship between loss of critical stock and supply chain risk management practices adopted by the organization. The study is presented in five chapters each with various sections through which the researcher has tried to discuss the above issues. The findings of this study should be appreciated and evaluated in light of the limitations of the study. The study is specifically of value to power sector firms but due to the growing vulnerability of the modern day supply chain, the study finds a place in all organizations that have the desire to instill resilience, robustness and responsiveness in their supply chain. The study therefore recommends that all the power sector firms should endeavour to appreciate their supplier chain risks, determine all the robust supply chain risk management practices that can be embedded into the day to day supply chain operations to ensure proactive control of disruptions or to minimize the effect of any incident disruption.