Factors Affecting Performance of Supply Chain Systems in the Petroleum Industries in Kenya

Abstract- The purpose of the paper was to highlight the challenge affecting performance of supply chain systems. The rise in fuel shortages by firms has precipitated the need for oil companies to realign their supply chain systems with a view of doing proper forecasting. Companies ’ in the petroleum industry rely on supplying fuel as their key resource inputs in ensuring that they offer better services to the ultimate customers. The paper looks at how oil companies can perform within the supply chain systems in their processes. This is a conceptual paper and the methodology used is analytical data after collection from the sample size targeted by the researcher in which in depth literature review is done to highlight how companies can incorporate performance of supply chain tools in their supply chains systems. The analysis is based on previously conducted research from books and relevant journals and articles. The findings of the paper confirm that oil companies need to implement supply chain systems as a continuous process to achieve sustainability in the supply chain processes. The study concludes that both national and international companies need to enhance the levels of implementing green supply chain practices in managing their operations. This is an emerging supply chain management paradigm that will enable companies to realize long term customer satisfaction through proper forecasting of inventories. Index Terms- Supply chain performance, Crude oil Price