CHAPTER FOUR

PRESENTATION OF RESEARCH FINDINGS

4.1 Introduction

This chapter provides the presentation, interpretation and analysis of the study findings on “the
effect of supply chain risk management on logistics performance of an organization with specific
reference to Mukwano Group of Companies, Kampala, Uganda.” The results presented were in
line with specific objectives which were: (i) to identify the supply chain risk management
strategies employed in Mukwano Group of Companies, (ii) to establish the level of logistics
performance in Mukwano Group of Companies and (iii) to determine the relationship between
supply chain risk management and logistics performance in Mukwano Group of Companies.

4.1 Response rate

The study was based on employees of Mukwano Group of Companies regarding contract
management and procurement performance. Amin (2015) argues that more that 70% response
rate is sufficient for the study. Out of 63 questionnaires administered to respondents, 60
questionnaires were responded with a response rate of 95% which was satisfactory for the study.

Figure 4.1: Showing Response Rate

Response rate

95%

5% 0% 0%
Returned Not returned

Source: Field Data (2024)

1
4.2 Demographic Characteristics of Respondents
With a use of questionnaire as the main research instruments to collect data from the
respondents, the researcher intended to gather data on the background of the respondents.
Frequency tables are used in analyzing the data gathered from the respondents.
4.2.1 Gender of the Respondents
The study sought to establish the gender of respondents in the study. The following information
(Table 4.1) was obtained from the respondents.
Table 4.1: Showing Gender of Respondents

Frequency Percentage (%)

Male 32 53.3
Female 28 46.7
Total 60 100.0
Source: Field Data (2024)
The majority of the respondents were male (53.3 %) compared to 46.7 percent female. this
indicates that at Mukwano Group of Companies males were more than females because some of
the work needed physical strength which only males could do

4.2.2 Age of Respondents

The study sought to establish the age of respondents in the study. The following information
(Table 4.1) was obtained from the respondents.
Table 4.2: Showing Age of respondents

Frequency Percentage (%)

18-25 4 6.7
26-33 29 48.3
34-41 16 26.7%
42+ 11 18.3
Total 60 100.0
Source: Field Data (2024)
The results on Table 4.2 above shows that most of the respondents who participated in the study
were between the age bracket of 26 to 33 years, followed by those between 34-41 years, then
those above 42 years and the least being those between 18-25 years. This implies that most
respondents were mature enough to answer questions in the questionnaire accurately and clearly.

2
4.2.3 Qualification of the Respondents
The study sought to find out the level of education of the respondents and established that the
employees is composed of well-educated personnel as shown in Table 4.3 below.
Table 4.3: Showing the level of education of the respondents

Frequency Percentage (%)

Certificate 4 6.7
Diploma 18 30
Degree 32 53.3
PhD 6 10
Total 60 100.0
Source: Field Data (2024)
The results on Table 4.3 above shows that most respondents who participated in the study were
degree holders with 53.3% response, followed diploma holders with 30% response, then PhD
holders with 10% and the least being certificate holders with only 6.7% response. These
findings, indicate that the employees in Mukwano Group of Companies have relatively high
level of education and exposure. This implies that there is relatively high potential for thorough
understanding of supply chain risk management issues.

4.2.4 Period of Work of the Respondents

The study sought to find out the Period of work of the respondents and established that the
employees have spent enough time as shown in Table 4.3 below.
Table 4.4: Showing years worked for the company

Frequency Percentage (%)

Less than 2 years 5 8.3
2-4 years 25 41.7
4-6 years 20 33.3
Over 6 years 10 16.7
Total 60 100.0
Source: Field Data (2024)
The study findings on table 4.4 above regard to the number of years respondents have worked
with Mukwano Group of Companies. Most of respondents with 41.7% response have worked for
the company between 2 to 4 years, followed by employees who have spent 4 to 6 years working
for the company with 33.3%, then those who have worked for above 6 years with 16.7% and the
least being those who have worked for less than 2 years with 8.3%. This indicated that all
respondents had stayed in the company for some time and therefore had information and

3
knowledge needed regarding the study.

4.2 The Supply Chain Risk Management Strategies employed in Mukwano Group
of Companies
The researcher was interested in finding out how supply chain risk management strategies
employed in Mukwano Group of Companies and the findings were presented on Table 4.5.
Table 4.5: Showing the procurement audit practices undertaken at Mukwano Group of
companies

SA A NS D SD Total
Flexibility
Delays final product assembly activities until 18 28 4 5 5 60
the last possible position (or nearest to
customers) in the supply chain 30% 46.7% 6.7% 8.3% 8.3% 100

Delays final product assembly activities 21 29 3 4 3 60

until customer orders have actually been 35% 48.% 5% 6.7% 5% 100
received
Preparation of a set of action plans for 18 34 3 2 3 60
unexpected disruptions 30% 56.7% 5% 3.3% 3% 100
Collaboration
Exchange of information that helps in the 14 36 3 3 4 60
reducing supply chain risks 23.3% 60% 5% 5% 6.7% 100
Collaboration with supply chain partners 18 32 3 4 3 60
30% 53.3% 5% 6.7% 5% 100
Involvement of supply chain partners in 16 35 3 3 3 60
the new product design, development effort 26.7% 58.3 5% 5% 5% 100
and marketing
Supply Base Rationalization
Sourcing from multiple local suppliers to 20 30 3 3 4 60
minimize the likelihood of supply chain risks
33.3% 50% 5% 5% 6.7% 100
Contracts with selected suppliers to reduce 12 15 10 9 14 60
supply risks 20% 25% 16.7% 15% 23.3% 100
Collaborative long term relationship with the 18 15 20 3 4 60
suppliers to minimize supply risks 30% 25% 33.3% 5% 6.7% 100
Control
Holding of buffer stock to mitigate the risk 21 15 10 6 8 60
of stock-out 35% 25% 17% 10% 13% 100
Holding of underutilized capacity which 14 20 11 10 5 60
serves as a cushion to any disruptions 23.3% 33.3% 18.3% 16.7% 8.3% 100
Using improved forecasting techniques to 20 36 1 2 1 60
reduce risks associated with supply chain 33.3% 60% 1.7% 3.3% 1.7% 100

4
Avoidance
Delays getting into certain markets until 35 1% 5 2 0.0 60
the
uncertainty is reduced 58.3% 30% 8.4% 3.3% 0.0% 100
Audits both our processes and supplier 16 19 10 5 10 60
processes to minimize quality risks 26.7% 31.7 16.7% 8.3% 16.7% 100
Avoids some suppliers in order to minimize 18 12 10 8 12 60
supply chain risks 30% 20 16.7% 13.3% 20% 100
Source: Field Data (2024)

Flexibility
Results on Table 4.5 showed that most of the respondents (76.7%) agreed that the company
ensures that there is delay in the final product assembly activities until the last possible position
or nearest to customers in the supply chain. The results on Table 4.5 showed that most of
respondents (83.3%) agreed that the company ensures that there is delay in the final product
assembly activities until customer orders have actually been received. The majority of
respondents (86.7%) agreed that the company prepares a set of action plans for unexpected
disruptions. The research findings agree with those of Gligor and Holcomb (2024) that found out
that firms that achieve higher levels of flexibility and agility significantly outperform their less
flexible counterparts. Flexible firms are more innovative, dynamic and responsive to changes and
challenges. Hence, flexibility positively impacts its ability to enhance comparative performance
relative to leading industry competitors. This study concludes that supply chain risk flexibility
strategies have positive influence on performance of manufacturing firms.

Collaboration
The result on Table 4.5 above indicated that most of the respondents ( 83.3%) agreed that there is
exchange of information between the company and suppliers that helps in the reducing supply
chain risks . Most of respondents (83.3%)agreed that the company collaborates with its supply
chain partners. Most of the respondents (85%) agreed that the company involves supply chain
partners in the new product design, development effort and marketing. These findings support
Wieland and Wallenburg (2024) who found that communicative and collaborative relationships
have a positive effect on SC resilience. It is also found that improved resilience, obtained by
investing in agility and robustness, enhances a supply chain’s customer value. Similarly,
Srinivasan et al. (2020) stated that building trust in relationships contribute to reduction of
supply chain related risks. Hence there will be a positive relationship between supply chain

5
collaborative risk management strategies and performance of manufacturing firms.

Supply Base Rationalization

Result on Table 4.6 revealed that most of the respondents (83.3%) agreed that the company
sources from multiple local suppliers to minimize the likelihood of supply chain risks. Majority
of the respondents with 45% agreed that the company makes contracts with selected suppliers
to reduce supply risks. Most of the respondents with 55% agreed that the company collaborate
long term relationship with the suppliers to minimize supply risks. These findings are in line
with those of Ponomarov (2024) that supplier rationalization based on quality, pricing, delivery
and performance of product have significant relationship with four elements of customer
satisfaction -product quality, product variety, delivery service and competitive pricing- and firm
performance.Musa and Tang, (2024) also stated that supplier base rationalization narrow the
domain and severity of risk to which an exchange is exposed, and thereby encourage cooperation
and trust.

Control
Results on Table 4.5 showed that most of the respondents with 60% agreed that the company
holds of buffer stock to mitigate the risk of stock-out. Majority of the respondents with 56.6%
agreed that the company holds of underutilized capacity which serves as a cushion to any
disruptions. Majority of the respondents with 93.3% agreed that the company use improved
forecasting techniques to reduce risks associated with supply chain. The research findings agree
with Lockamy (2014) findings that companies have been implementing different strategies and
philosophies to control inventory, to eliminate waste, bring continuous improvement, to improve
forecasting and improved efficiency and responsiveness.

Avoidance
Results on Table 4.5 showed that most of the respondents with 88.3% agreed that the company
delays to get into certain markets until the uncertainty is reduced. The majority of the
respondents with 54.8% agreed that the company audits both its processes and supplier processes
to minimize quality risks. Most of the respondents with 50% agreed that the company avoids
some suppliers in order to minimize supply chain risks. The study findings tally with those of
Christopher & Holweg (2020) who found out that supply chains operating in all types of
environments attempt to avoid risks within the constraints of acceptable returns such as revenue

6
and profit targets. Hence avoidance strategies lead to better logistics performance.
4.3 The level of logistics performance in Mukwano Group of Companies
The researcher was interested in finding out the level of logistics performance in Mukwano
Group of Companies and the findings were presented on Table 6 Below;

Table 4.6: Showing the level of logistics performance in Mukwano Group of Companies

SA A NS D SD Total
Efficiency
The ability to achieve the lowest possible 18 33 2 4 3 60
cost of logistics through efficient operations,
30% 55% 3.3% 6.7% 5% 100
technology, and/or scale economies

The ability to reduce the time between order 26 26 2 3 3 60

reception and customer delivery to as close 43.3% 43.3% 3.4% 5% 3% 100
to
zero as possible
The ability to meet quoted or anticipated 16 35 3 3 3 60
quality and quantities on a consistent basis 26.7% 58.3% 5% 5% 5% 100
The extent to which perceived supply chain 20 30 3 3 4 60
performance matches customer expectations 33.3% 50% 5% 5% 6.7% 100
Effectiveness
The logistics function’s goals are 26 24 2 4 4 60
accomplished within stipulated time 43.3% 40% 3.3% 6.7% 6.7% 100
The company’s inventory is easily converted 28 26 1 3 2 60
into cash 46.7% 43.3% 1.7% 5% 33.3% 100
There is full delivery on the company 20 28 3 4 5 60
requests and proposals 33.3% 46.7% 5% 6.7% 8.3% 100
The order cycle time is always met within 12 15 10 9 14 60
the stipulated period 20% 25% 16.7% 15% 23.3% 100
Differentiation
The company’s inventory turnover curve is 18 15 20 3 4 60
used to gauge inventory management 30% 25% 33.3% 5% 6.7% 100
performance
There is differential performance of 21 15 10 6 8 60
warehouse management operations with the 35% 25% 17% 10% 13% 100
firm
There is relationship in the quality of 14 20 11 10 5 60
the company products 23.3% 33.3% 18.3% 16.7% 8.3% 100
There is minimization of associated 30 10 12 2 6 60
costs against respective practices of 50% 16.7% 20% 3.3% 10% 100

7
competing firms
Source: Field Data (2024)

Efficiency
Results on (Table 4.6) above, revealed that most of the respondents (85%) agreed that the
company is able to achieve the lowest possible cost of logistics through efficient operations,
technology, and scale economies. Most of respondents (85%) agreed that the company is able to
reduce the time between order reception and customer delivery to as close to zero as possible.
Most of the respondents (85%) agreed that the company is to meet quoted or anticipated quality
and quantities on a consistent basis. Most of the respondents (83.3%) agreed that company
perceives supply chain performance that matches customer expectations. These findings are in
line with those of Kallio, Sarrinen, Tinnila, & Vepsalainen (2020) that efficiency is one of
several common operational measurement areas used in the measuring processes and is applied
at multiple levels, from specific processes measuring the performance of entire supply chains.
Kiefer & Novack (2019) discuss logistics efficiency measurement within the context of
warehouse measurement systems (providing parallels with the industry data presented later in
this study). Kallio et al. (2020) analyzes firms’ achievement of efficiency within varying
delivery processes, determining that companies employing routine delivery processes should
place greater value on efficient, low-cost operations than those that provide custom delivery
processes to meet specific needs of the receiving party. Griffis et al. (2014 & 2017) further
emphasize the need for firms to align performance measures to their specific goals and
information reporting needs. They suggest that a firm that fails to capture measures that reflect
its strategic goals, at the right organizational level and with appropriate frequency falls short in
delivering optimal customer value.

Effectiveness
Results on (Table 4.6) indicated that most of respondents (83.3%) agreed that the company’s
logistics function goals are accomplished within stipulated time. Most of respondents (90%)
agreed that the company’s inventory is easily converted into cash. Results on Table 4.6 showed
that most of respondents (80%) agreed that there is full delivery on the company’s requests and
proposals. The majority of the respondents with 55% agreed that the order cycle time is always
met within the stipulated period. These findings are in line with those of (Mentzer et. al., 2011)
that logistics effectiveness measures present themselves within each of the four Balanced

8
Scorecard (BSC) perspectives (Brewer et. al. 2020; Barber et. al., 2018). One such measure,
incorporated within the financial perspective of the BSC, is the cash-to cash cycle. The extent to
which the logistics function’s goals are accomplished (Mentzer & Konrad, 2011). The ability to
achieve pre-defined objectives, for example, in meeting customer requirements in critical (e.g.
product guarantee, in-stock availability, fulfillment time, convenience) (Langley & Holcomb,
2012). The inventory turnover curve measures total network inventory as a function of the
number of points and annual stocking point throughput (2020). Its ability to be developed from
readily available and accessible data and its representation of inventory management
performance at multiple points within a supply chain validate the inventory turnover curve as a
valuable supply chain effectiveness metric.

Differentiation
Results on Table 4.6 revealed that majority of respondents (55%) agreed that the company’s
inventory turnover curve is used to gauge inventory management performance. Results on Table
4.6 that the majority of respondents with 60% agreed that there is differential performance of
warehouse management operations with the company. Results on Table 4.6 showed that most of
the respondents with 56.6% agreed that there is relationship in the quality of the company
products. Results on Table 4.6 indicated that most of the respondents with 66.7% agreed that
there is minimization of associated costs against respective practices of competing firms. The
research findings agree with Fugate et al., 2020, the discrimination between the measurement of
differentiation and the other measurement areas occurs when metrics are used to compare one
firm’s or logistics performance to that of a competing firm or supply chain. Brewer (2020) and
Barber (2018) provide several examples of differentiation measurement, again, within the
context of the balanced scorecard. Ballou (2019) discusses how an inventory turnover curve can
be used to gauge inventory management performance and minimization of associated costs
against respective practices of competing firms, while Kiefer (2019) compares a firm’s
differential performance of warehouse management operations in relation with their level of
supply chain management. A yet to be mentioned logistics differentiation area is one of an
intangible nature. Nyaga & Whipple (2020) explore “The overall caliber of relationship ties and
their overall impact on outcomes,” (Palmatier, 2018; Nyaga and Whipple, 2020). The benefits of
relationship quality are numerous, intangible, and tangible. Relationship quality leads to
increased operational performance, improved market and financial performance, and increased

9
customer loyalty in both B2C and B2B environments (Nyaga et al., 2020; Autry, Skinner, &
Lamb, 2018; Fynes, Bu´rca, & Magnan, 2018).
4.4 The relationship between supply chain risk management and logistics performance in
Mukwano Group of Companies
The researcher was interested in establishing the relationship between supply chain risk
management and logistics performance in Mukwano Group of Companies and the findings were
presented on Table 4.7 below;

Table 4.7: Showing the relationship between supply chain risk management and logistics
performance in Mukwano Group of Companies
Statements SA A NS D SD Total
This company’s primary supply chain has the 12 38 1 6 3 60
ability to minimize channel safety stock 20% 63.3% 1.7% 10% 5% 100
throughout the supply chain
The company chain continuously evaluates 25 28 2 2 3 60
supplier quality / auditing / certification
programmes 41.7% 46.7% 3.3% 3.3% 5% 100

The company has multiple sources of supply 27 26 3 2 2 60

and not giving preference to single sourcing of 45% 43.3% 5% 3.3% 3.3% 100
products and services
This company’s primary supply chain has the 18 33 2 4 3 60
ability to minimize all types of waste 30% 55% 3.3% 6.7% 5% 100
throughout the supply chain
The company practices intentional risk 26 26 2 3 3 60
sharing and knowledge transfer with its 43.3% 43.3% 3.3% 5% 5% 100
suppliers
The management of the company inventory 28 26 1 3 2 60
is
given attention considering the perishability 46.7% 43.3% 1.7% 5% 3.3% 100
of most of the products
This company’s primary supply chain has 20 28 3 4 5 60
the ability to deliver small lot sizes to final 33.3% 46.7% 5% 6.7% 8.3% 100
customers
The company chain has developed strategic 16 18 7 16 3 60
alliances with various players within and 26.7% 30% 11.7% 26.7% 5% 100
without the industry to increase its product

10
offering and also clientele
This company’s primary supply chain has 60
the ability to deliver products precisely on- 21 15 17 2 5 100
time to final customers
35% 25% 28.3% 3.3% 8.3%
Source: Field Data (2024)

Results on Table 4.7 showed that most of the respondents (83.3%) agreed that the company’s
primary supply chain has the ability to minimize channel safety stock throughout the supply
chain. Most of the respondents (88.3%) agreed that the company’s chain continuously evaluates
supplier quality / auditing / certification programmes. Most of respondents (88.3%) agreed that
the company has multiple sources of supply and not giving preference to single sourcing of
products and services. Most of the respondents (85%) agreed the company’s primary supply
chain has the ability to minimize all types of waste throughout the supply chain. Most of
respondents (86.7%) agreed that the company practices intentional risk sharing and knowledge
transfer with its suppliers. Most of the respondents ( 83.3%) agreed that the management of the
company inventory is given attention considering the perishability of most of the products. Most
of respondents (83.3%) agreed that the company’s primary supply chain has the ability to deliver
small lot sizes to final customers. Most of the respondents with 51.7% agreed that the company
chain has developed strategic alliances with various players within and without the industry to
increase its product offering and also clientele. Most of the respondents with 60% agreed that the
company’s primary supply chain has the ability to deliver products precisely on-time to final
customers.

The results support the previous research by Gligor and Holcomb (2024) that found out that
firms that achieve higher levels of flexibility and agility significantly outperform their less
flexible counterparts. These findings support Wieland and Wallenburg (2024) who found that
communicative and collaborative relationships have a positive effect on performance. The
research findings agree with Lockamy (2014) findings that companies have been implementing
different strategies and philosophies to control inventory, to eliminate waste, bring continuous
improvement, to improve forecasting and improved efficiency and responsiveness. These
findings are in line with those of Ponomarov (2024) that supplier rationalization based on
quality, pricing, delivery and performance of product have significant relationship with four

11
elements of customer satisfaction -product quality, product variety, delivery service and
competitive pricing- and firm performance. Musa & Tang (2024) also stated that supplier base
rationalization narrow the domain & severity of risk to which an exchange is exposed, and
thereby encourage cooperation and trust. The study findings tally with those of Christopher and
Holweg (2020) who found out that supply chains operating in all types of environments attempt
to avoid risks within the constraints of acceptable returns such as revenue and profit targets.

CHAPTER FIVE

SUMMARY OF FINDING

5.0 Introduction

12
This chapter highlights the summary of findings based on the findings of the study. The purpose
of the study was to establish the effect of supply chain risk management on logistics performance
of an organization with specific reference to Mukwano Group of Companies, Kampala, Uganda.
The study was guided by the following objectives: (i) to identify the supply chain risk
management strategies employed in Mukwano Group of Companies, (ii) to establish the level of
logistics performance in Mukwano Group of Companies and (iii) to determine the relationship
between supply chain risk management and logistics performance in Mukwano Group of
Companies.
5.1 Summary of Study Findings

This section gives a summary of the findings as presented in chapter four based on the objectives
of the study as below;

The supply chain risk management strategies employed in Mukwano Group of Companies
The study findings on flexibility strategy revealed that majority of respondents (76.7%) agreed
that the company ensures that there is delay in the final product assembly activities until the last
possible position or nearest to customers in the supply chain, 83.3% agreed that the company
ensures that there is delay in the final product assembly activities until customer orders have
actually been received, and 86.7% agreed that the company prepares a set of action plans for
unexpected disruptions. The study findings on collaboration strategy revealed that most of
the respondents (83.3%) agreed that there is exchange of information between the company
and suppliers that helps in the reducing supply chain risks, 83.3% agreed that the company
collaborates with its supply chain partners 85% agreed that the company involves supply
chain partners in the new product design, development effort and marketing . The study findings
on supply base rationalization strategy revealed that most of the respondents ( 83.3%) agreed that
the company sources from multiple local suppliers to minimize the likelihood of supply chain
risks, 45% agreed that the company makes contracts with selected suppliers to reduce supply
risks, and 55% agreed that the company collaborate long term relationship with the suppliers
to minimize supply risks. The study findings on control strategy revealed that most of the
respondents (60%) agreed that the company holds of buffer stock to mitigate the risk of
stock-out, 56.6% agreed that the company holds of underutilized capacity which serves as a
cushion to any disruptions and 93.3% agreed that the company use improved forecasting
techniques to reduce risks associated with supply chain. The study findings on avoidance

13
strategy revealed that most of the respondents (88.3%) agreed that the company delay to get
into certain markets until the uncertainty is reduced, 54.8% agreed that the company audits
both its processes and supplier processes to minimize quality risks and 50% agreed that the
company avoids some suppliers in order to minimize supply chain risks.

5.1.1 The level of logistics performance in Mukwano Group of Companies

The study findings on efficiency revealed that most of the respondents (85%) agreed that the
company is able to achieve the lowest possible cost of logistics through efficient operations,
technology, and/or scale economies, 85% agreed that the company is able to reduce the time
between order reception and customer delivery to as close to zero as possible, 85% agreed that
the company is to meet quoted or anticipated quality and quantities on a consistent basis and
83.3% agreed that company perceives supply chain performance that matches customer
expectations. The study findings on effectiveness revealed that most of respondents (83.3%)
agreed that the company’s logistics function goals are accomplished within stipulated time, 90%
agreed that the company’s inventory is easily converted into cash, 80% agreed that there is full
delivery on the company’s requests and proposals and 55% agreed that the order cycle time is
always met within the stipulated period. The study findings on differentiation revealed that
majority of respondents (55%) agreed that the company’s inventory turnover curve is used
to gauge inventory management performance, 60% agreed that there is differential performance
of warehouse management operations with the company, 56.6% agreed that there is relationship
in the quality of the company products and 66.7% agreed that there is minimization of associated
costs against respective practices of competing firms.

5.1.2 The relationship between supply chain risk management and logistics performance in
Mukwano Group of Companies
The study findings revealed that most of the respondents (83.3%) agreed that the company’s
primary supply chain has the ability to minimize channel safety stock throughout the supply
chain, 88.3%) agreed that the company’s chain continuously evaluates supplier quality /
auditing / certification programmes, 88.3% agreed that the company has multiple sources of
supply and not giving preference to single sourcing of products and services, 85% agreed the
company’s primary supply chain has the ability to minimize all types of waste throughout the
supply chain, 86.7% agreed that the company practices intentional risk sharing and knowledge

14
transfer with its suppliers, 83.3% agreed that the management of the company inventory is given
attention considering the perishability of most of the products, 83.3% agreed that the company’s
primary supply chain has the ability to deliver small lot sizes to final customers, 51.7% agreed
that the company chain has developed strategic alliances with various players within and without
the industry to increase its product offering and also clientele, and 60% agreed that the
company’s primary supply chain has the ability to deliver products precisely on-time to final
customers.

CHAPTER SIX
CONCLUSIONS AND RECOMMENDATIONS

15
6.0 Introduction
This chapter highlights the conclusions and recommendations based on the findings of the study.
The purpose of the study was to establish the effect of supply chain risk management on logistics
performance of an organization with specific reference to Mukwano Group of Companies,
Kampala, Uganda.

6.1 Conclusion

Basing on the findings, the following conclusion was drawn based on the objectives of the study
as below;

6.1.1 The supply chain risk management strategies employed in Mukwano Group of
Companies

It is concluded on flexibility strategy that the company ensures that there is delay in the final
product assembly activities until the last possible position (or nearest to customers) in the
supply chain, the company ensures that there is delay in the final product assembly activities
until customer orders have actually been received, the company prepares a set of action
plans for unexpected disruptions. It is concluded on collaboration strategy that there is
exchange of information between the company and suppliers that helps in the reducing
supply chain risks, the company collaborates with its supply chain partners, and the company
involves supply chain partners in the new product design, development effort and marketing. It
is concluded on supply base rationalization strategy that the company sources from multiple
local suppliers to minimize the likelihood of supply chain risks, the company makes contracts
with selected suppliers to reduce supply risks, and the company collaborate long term
relationship with the suppliers to minimize supply risks. It is concluded on control strategy that
the company holds of buffer stock to mitigate the risk of stock-out, the company holds of
underutilized capacity which serves as a cushion to any disruptions and the company use
improved forecasting techniques to reduce risks associated with supply chain. It is concluded on
avoidance strategy that the company delays to get into certain markets until the uncertainty is
reduced, the company audits both its processes and supplier processes to minimize quality risks
and the company avoids some suppliers in order to minimize supply chain risks.

6.1.2 The level of logistics performance at Mukwano Group of Companies

16
It is concluded on efficiency that the company is able to achieve the lowest possible cost of
logistics through efficient operations, technology, and scale economies, the company is able to
reduce the time between order reception and customer delivery to as close to zero as possible,
85% agreed that the company is to meet quoted or anticipated quality and quantities on a
consistent basis and the company perceives supply chain performance that matches customer
expectations. It is concluded on effectiveness that the company’s logistics function goals are
accomplished within stipulated time, the company’s inventory is easily converted into cash, there
is full delivery on the company’s requests and proposals and the order cycle time is always met
within the stipulated period. It is concluded on differentiation that the company’s inventory
turnover curve is used to gauge inventory management performance, there is differential
performance of warehouse management operations with the company, there is relationship in the
quality of the company products and there is minimization of associated costs against respective
practices of competing firms.

6.1.3 The relationship between supply chain risk management and logistics performance
at Mukwano Group of Companies
It was concluded that the company’s primary supply chain has the ability to minimize channel
safety stock throughout the supply chain, the company chain continuously evaluates supplier
quality / auditing / certification programmes, the company has multiple sources of supply and not
giving preference to single sourcing of products and services, the company’s primary supply
chain has the ability to minimize all types of waste throughout the supply chain, the company
practices intentional risk sharing and knowledge transfer with its suppliers, the management of
the company inventory is given attention considering the perishability of most of the products,
the company’s primary supply chain has the ability to deliver small lot sizes to final customers,
the company chain has developed strategic alliances with various players within and without the
industry to increase its product offering and also clientele, and the company’s primary supply
chain has the ability to deliver products precisely on-time to final customers.

6.2 Recommendations

Based on the research findings, the study recommends the following;

17
The study recommends that Mukwano Group of Companies should develop capabilities to adapt
their supply chains in order to cope with business dynamics such as changes in key markets,
technological shifts, and socio-political changes. Flexibility is often characterized as agility,
contingency planning and innovativeness. Specifically, a manufacturing firm can have the
flexibility to select different suppliers, store materials at appropriate locations, re-arrange
production processes for customization, accommodate customer requirements, delay processes
until customer orders are received and delay final assembly activities. These characteristics
enhance the ability of the firm to respond to chain risks effectively, minimizing the negative
impacts on overall supply chain performance levels.

The study recommends that Mukwano Group of Companies should implement collaborative
relationships with the suppliers to reduce and prevent the occurrence of supply chain risks.
Examining the manufacturing firm’s strategies reveals that many of them are trying to optimize
their partnerships with the different trading partners so as to improve the operation of supply
chains, and ultimately increase customers’ satisfaction. The desire to cooperate naturally leads to
better supply chain coordination. The basic idea behind the collaboration is that it is not possible
for a company to compete in this competitive market successfully by itself. Organizations
implementing such programs successfully are applying them throughout the company to improve
quality and reduce waste. As a result, many organizations are reducing costs, increasing profits
and/or revenues, and meeting customer expectations. Collaborative relationships require trust
and information sharing between firms for a long-term period along with commitment to share
risk and joint investment. This strategy will in turn support the improvement of flexibility and
therefore improved supply chain performance.

The study recommends that Mukwano Group of Companies should have a clearly defined
sourcing strategy which will significantly improve both the quality and the speed required to
achieve a firm’s objectives. Strategic Sourcing is the process of evaluating, selecting and
aligning with suppliers to achieve supply chain improvements in line with a firm’s strategy. A
portfolio analysis technique which analyses the supply base according to supplier risk factors:
risk relates to exposure to supply failure and supply market complexity should be used to as a
proactive supply chain risk management process.

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In order to improve logistics performance, Mukwano Group of Companies must be learning
organizations. Continuous analysis and improvement of supply chain, accurate demand
forecasting, quality control, implementing standard operating procedures and implementing
changes lead to logistics performance. Failure to monitor, control and respond to new challenges
can pose devastating risks for food and beverage manufacturing supply chains. Control strategies
aim at testing capacity, reducing time to accomplish a process, increasing awareness and
knowledge among employees about the risk- management plan and incorporating lessons learned
from previous tests and actual incidents. Ideally, Mukwano Group of Companies should have
detailed governance procedures for managing supply chain risks. The results of this study
suggest that avoidance strategies such as delaying entry to uncertain markets, total avoidance of
such markets are vital to manufacturer’s supply chain competence. Additionally, firms cannot
escape supply chain risks, but combining the right capabilities with effective avoidance strategy
may lead to successful logistics.

6.3 Areas for future research

The following were suggested for further investigation.

1. Factors affecting performance of the procurement and disposal unit (PDU)

2. Effect of procurement practices on performance of public projects in Uganda

3. The effect of contract management on public procurement performance in local governments

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