Assessment Of Supply Chain Risks And Risk Mitigation Practices The Case Of Heineken Brewery Kilinto Site

This study investigates the different supply chain risks and their mitigation practices. The aimrnof the study was to assess those supply chain risks and the different mitigation practices ofrnHeineken brewery Kilinto site. The conceptual framework was designed by adopting bothrnmajor supply chain risks and mitigation practices which are developed by prominentrnresearchers. To achieve the objective of the study, four research questions were formulated. Arndescriptive research design with mixed (quantitative and qualitative) research approaches wasrnapplied to conduct the study. The supply chain risks questionnaire was adopted from Wagnerrnand Bode (2008) and mitigation practices questionnaire was adopted from Omondi Ademrn(2014). Cronbach alpha was tested, so as to check the reliability and internal consistency ofrnthe questionnaire. Furthermore, pilot test and preliminary interviews was conducted before therndistribution of the questionnaires. The data were obtained by an interview and surveyrnquestionnaires consisted of 39 statements with five point Likert scale. The study took 110rnsamples with response rate of 92 respondents. The data were analyzed using SPSS (versionrn20). Descriptive statistics were used to analyze the data and interpret results. The findings ofrnthe study revealed that, even though their extent varies, the factory has experienced risks in itsrnsupply chain which are associated with demand side, supply side, bureaucratic, infrastructurernand catastrophic risks. Furthermore, the factory has adopted practices to mitigate those risksrnto a varying extent. Particularly, the practices of developing supply chain contingency plansrnwere the most common mitigation practices which are adopted by the site to a large extent.rnWhile, the practices of Developing backup supplier arrangement was implemented to a smallrnextent. On the other hand, installation of advanced software’s that increase visibility, andrnforecasting errors which increases the effect of demand side risks with high volatility andrndistorted information were the challenges that site have faced while implementing the supply rnVrnchain risk mitigation practices. Finally, based on the findings of the study, HBKS werernforwarded with better ways of improving its practices of supply chain risk mitigation.

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