Influence of Distribution Channels on Supply Chain Performance-A Case Study of the New Kenya Cooperative Creameries Eldoret

Abstract

Successful distribution channel strategy selection, implementation, and management cannot only help to meet the shopping needs and habits of the target customers efficiently under the cost constraints of the seller; they must also mitigate the disadvantages caused by distribution channel conflicts such as double marginalization. Customer needs analysis plays a relatively small role in product development in these firms. Instead, product development is typically driven by process technology capabilities which often are the result of incremental process improvements. Unlike market-driven firms, where a focus on value drives marketing decision making, marketing decisions in these firms often revolve around pricing issues, such as volume discounts, as the key to increasing the firm’s unit sales. The purpose of the study was analyse influence of distribution channels on supply chain performance: New KCC Eldoret. The specific objective of the study was to evaluate the effect of product efficiency on supply chain performance in the New KCC. The research employed descriptive research design. The study involved 84 employees from various departments in the company. Data was collected through self-administered questionnaires that consist of both open and closed ended questions. The data was analyzed using both descriptive statistics and inferential statistics. The findings indicated as significant relationship between the product efficiency 0.010. The study concluded that distribution channels have a significant impact on supply chain performance. For any organization to be effective there should be effective distribution management process to convey finished products from the manufacturer to the final consumers. The study recommended that organizations should involve themselves in the correct distribution channels; in order to meet their organizational objectives of being efficient in provision of the products, customer satisfaction should be considered in order to enhance supply chain performance in manufacturing companies.

Keywords: Product Efficient, Distribution.