Abstract:
Purpose: The purpose of this study was to determine therelationship between hedging risk
management strategy and supply chain performance among manufacturing companies in
Kenya
Methodology:The study adopted a cross-section survey of descriptive nature .The target
population comprised of the 412 manufacturing companies within Nairobi County that were
registered members of KAM. The fisher et al formula for calculating the sample size was used
to yield a sample size of199. Data was collected using questionnaires and analyzed using
statistical package of social sciences (SPSS) version 21 as a tool of analysis.
Results: The study findings revealed that the companies that increased buffer stock at various
levels in the supply chain. Increasing buffer stock at various levels in the supply chain resulted
to decreased lead time, improved quality and reduced cost. Results also showed that most of
the companies ‘conducted reduce order cycle times. Conducting reduce order cycle times
resulted to decreased lead time, improved quality and reduced cost. Further, the results revealed
that most of the companies shared supply chain costs with partners. Sharing supply chain costs
with partners resulted to decreased lead time, improved quality and reduced cost.
Policy recommendation:the study recommended that manufacturing companies should put in
place a risk analysis and evaluation management strategy to enhance supply chain performance.
In particular, companies should consider conducting whole life costing of suppliers and also
internal quality of suppliers.
