Does Transportation Function Influence Supply Chain Management Performance: A Case of Agricultural Firms Listed at the Nairobi Securities Exchange

Abstract

The strength of a nation's agricultural sector has been determined to have a significant impact on its social and economic growth. In Kenya, Vision 2030 emphasized the need for effective production planning to enhance efficiency, sustainability, and competitiveness. The goal of supply chain management (SCM) is to balance cost, quality, quantity, and time while increasing the effectiveness of material, product, and information flows. The objective of the study was assessing  the influence of transportation management function on the supply chain management of agricultural firms listed at the Nairobi Securities Exchange. A cross-sectional descriptive survey design was used in the research to target 156 workers from six listed agricultural companies. Questionnaires, interviews, and document analysis were used to gather data, which was then examined using regression models, correlation, and descriptive statistics. The results showed that transportation management explained 15.7% of the variation in performance and had a positive and substantial effect on SCM (B = 0.446, p < 0.001). The study concluded that transport management is a strategic driver of SCM performance in agricultural firms. It enhances efficiency through terminal operations, strengthens interconnectivity, adds value, and links warehouse activities. The study recommends that, Production firms should invest in efficient and reliable transport systems to enhance supply chain connectivity.