Role of Collaborative Planning, Forecasting & Replenishment On Hotel Performance as Mediated by Cooperative Behavior: A Survey of the Kenyan Hospitality Industry.

Abstract

Collaborative Planning, Forecasting & Replenishment (CPFR) has of late been the holy grail of supply chain collaboration. Its role in achieving exemplary performance of supply chains has been widely documented. This study sought to find out the role of CPFR on hotel performance when the relationship was mediated by cooperative behaviour. A survey design was employed where proportionate stratified sampling was used to select 50 out of 57 town hotels. Data was collected through the use of questionnaires as well interview guides to the procurement\supply chain departments of these hotels. Logarithmic transformations were used in conjunction with multiple regression analysis to determine the relationship between CPFR, cooperative behaviour and hotel performance. With respect to CPFR, the study unsurprisingly concludes that this collaborative practice is statistically significant in predicting hotel performance. Hotels in the industry should implement this practice to better performance. Cooperative behaviour (trust and attitude) was found not to have a significant influence on hotel performance when it mediated the relationship. Therefore it can be deduced that CPFR on its own significantly improves operational performance. This performance is in most cases through the leveraging of information technologies such as internet based CPFR solutions, tracking and reporting of performance against indicators as well as liaison devices activated to align different supply network activities. Through quadrant analysis that is based on the BCG matrix, the study recommends that sales forecasting should be jointly done with key suppliers. This is a primary priority area that is most important but has scored low in terms of satisfaction. The hotels should invest in this as a priority in order to improve satisfaction with a higher level.