SUPPLY CHAIN FLEXIBILITY AND PERFORMANCE OF FOOD & BEVERAGE MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

The performance of food and beverage manufacturing firms in Nairobi City County has declined over the past three years despite government efforts to stimulate industrial growth through tax incentives, policy reforms, and infrastructural investments aimed at improving the ease of doing business. This study examined the relationship between supply chain flexibility and the performance of food and beverage manufacturing firms in Nairobi City County, Kenya, with specific focus on supplier flexibility and distribution flexibility. The study adopted a descriptive research design. The target population comprised 476 management staff drawn from 119 food and beverage manufacturing firms in Nairobi City County. The unit of analysis was the firms, while the unit of observation included supply chain management personnel, namely heads of procurement administration, supply chain managers, warehouse managers, and production managers. Using stratified random sampling, a sample of 217 respondents was selected. Primary data were collected using structured questionnaires and analyzed using SPSS. Data analysis involved both descriptive statistics (frequencies, means, and standard deviations) and inferential statistics, including Pearson correlation and linear regression analysis. The findings revealed a positive and statistically significant relationship between supplier flexibility, distribution flexibility, and firm performance. Firms that maintain multiple alternative suppliers and can easily switch suppliers during disruptions tend to experience improved operational efficiency and profit growth. In addition, distribution flexibility, including adaptable transport arrangements and flexible delivery schedules, enhances responsiveness to market demands and improves service delivery. The study concludes that supply chain flexibility plays a critical role in enhancing the performance of food and beverage manufacturing firms. The study recommends that manufacturing firms strengthen supplier collaboration and invest in flexible distribution systems supported by digital technologies to improve supply chain responsiveness and overall organizational performance.

Key Words: Supply Chain Flexibility, Supplier Flexibility, Distribution Flexibility, Firm Performance, Nairobi City County.