The Effect of Implementing Risk Management Strategies on Supply Chain Performance: A Case of Kenya Medical Supplies Agency

Abstract

Implementing risk management strategies is an invaluable technique and tool to organizations’ supply chains; awareness of risks should be regarded as positive traits for any successful supply chain professional. In addition, the most important thing is to make sure that when a disruption occurs, the company has the ability to go back to their normal state and continue their business.

This research sought to determine the effect of implementing risk management strategies on supply chain performance; a case study of KEMSA. The research objectives included to determine how risk identification strategies affect supply chain performance. Secondly, To determine how risk analysis and evaluation strategies affect supply chain performance and lastly was to determine how risk control and monitoring  strategies affect supply chain performance within KEMSA.

The target respondents for the study were 24 KEMSA supply chain staff and the study used census approach. The data for this study included both primary and secondary data; this data was analyzed using descriptive statistics, that is, percentages, mean and standard deviation to determine the effect of implementing risk management strategies on supply chain performance. The data was presented using pie charts, graphs, bar charts and tables. The research established that the level of implementation of risk management strategies in the KEMSA supply chain was medium and that risk identification, risk analysis and evaluation and risk control and monitoring strategies that were implemented in the KEMSA supply affected the performance to a great extent. The key recommendation is for KEMSA to implement risk management strategies proactively at the planning stages of the supply chain and also ensure that there is joint participation with all supply chain partners in the implementation of the strategies.