EFFECT OF SUPPLY CHAIN RESTRUCTURING ON PERFORMANCE OF OIL MARKETING COMPANIES IN RWANDA. A MULTI SURVEY ON THE OIL MARKETING COMPANIES IN RWANDA
Journal Title: European Journal of Business and Social Sciences - Year 2016, Vol 5, Issue 1
Abstract
The purpose of this study was to establish the factors affecting supply chain management by oil companies in Rwanda and see how these factors have been restructured to enhance performance in the sector. The study was guided by the following specific objectives: To determine the effect of Bulk procurement system on performance of oil marketing companies in Rwanda, to establish the effect transport of oil on performance of oil marketing companies in Rwanda, to analyze the effect of Storage infrastructure on performance of oil marketing companies in Rwanda and to examine the effect of Marketing and distribution channels on profitability performance of oil marketing Companies in Rwanda. The study adopted descriptive design in form of a survey where questionnaires were administered to the targeted population. Questionnaires were administered through personal interviews with the respondents. The target population of this study was 54 employees in the oil companies in Rwanda who are involved in restructuring. There are 18 oil marketing companies with an estimated total of 360 employees. Stratified random sampling was used to pick the sample since the population was divided into companies dealing with oil to ensure effective representation. Data was collected by use of a questionnaire and a five point Likert scale was used. After data had been collected it was edited, and keyed into Statistical Package for Social Sciences (SPSS) computer software for analysis and computations for averages, correlation and regression analysis was done. A multivariate regression model was finally used to link the independent variables and performance of the OMCs. The study revealed that there was strong relationship, 94.0% of the variation in the dependent variable between bulk procurement system, transportation, storage infrastructure, and marketing & distribution channels with performance of oil marketing companies in Rwanda. The study finally recommended that oil companies should consider having their own fleet for transport, implement reverse logistics practices, invest in strategies geared towards gaining and maintaining more tanks for storage and the expand their distribution channels in all areas in order to tap on the growing number of clients in every area and continually improve on their performance.
Authors and Affiliations
Samuel Ndegwa Njeri| Jomo Kenyatta University of Agriculture and Technology, Kigali, Rwanda. Email: sam_ndgw@yahoo.com, Dr. Kule Julius Warren (PhD)| Jomo Kenyatta University of Agriculture and Technology, Kigali, Rwanda. Email : kulewarren@gmail.com, Ms. Jacklinne Kibachia| Jomo Kenyatta University of Agriculture and Technology, Kigali, Rwanda. Email: jakkie.kibachia@gmail.com
Keywords
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