Effect of E-Commerce Implementation on Supply Chain Processes at South Nyanza Sugar Company Limited-Kenya

Abstract

Electronic Commerce (E-Commerce) has made Supply Chain Management (SCM) teclmically viable in the world. With the advancement of technology; many production firms have found it necessary to digitalize their production systems to attain competitive edge. This is necessary for improved interaction with their customers. Kenya Sugar Industry, and III particular Sony Sugar Company is in the process of utilizing e- commerce and specifically in the procurement department. However in the endeavor to implement e-commerce in their Supply Chain Management, not much has been done to gauge the level of effect between Information and Communication Technology implementation and the supply chain output. The purpose of this research was therefore to study the effect of e- commerce implementation on supply chain processes at South Nyanza Sugar Company Limited. The objectives of the study were to establish the level of influence of e-sourcing on the supply chain processes, to establish the level of influence e-cataloguing on the supply chain processes and to establish the level of influence of e-tendering on the supply chain processes. The study was guided by a conceptual framework where the independent variables were forms of e-commerce as esourcing-cataloguing and e-tendering while dependent variables were supply chain processes such as goods flow, materials flow, information flow and customer relations. The study adopted a correlation case study design. The target population was forty members of staff from both Information and Communication Teclmology and procurement departments. Due to small population, census sampling was utilized. Both primary and secondary data was utilized ill the study. Primary data was collected using structured questionnaires while secondary data was obtained through document review. Data was analyzed using inferential statistics. The findings of the research were presented in form of tables. The results and findings of the study may be helpful in both policy formulation and advancement of new knowledge. The research found out that Sony Sugar Company has not fully implemented electronic commerce forms in its supply chain processes thus does not fully benefit from the advantages generated by electronic commerce. The findings revealed that the independent variables; e-sourcing (B1 = .231, p<O.05), e-cataloguing (~2=O.121,p<O.05) and tendering (133= .249, p<O.05) had a positive influence on the dependent variables; supply chain processes. The researcher made the following recommendations: that Sony sugar should collaborate with the government in seeking for support so as to fully implement e-commerce; that there should be early supplier involvement and adaption in order to reap from the benefits of epurchasing and that Sony Sugar should apply the World Trade Organization systems for liberalization so as to abide by the multi-lateral agreements on e-commerce. The researcher therefore calls upon more researchers to explore knowledge ill E-commerce by carrying out various studies in E-commerce. This will enable more firms to be aware of the importance of implementing e-commerce and the benefits that accrue by doing the same.