LOGISTICS MANAGEMENT PRACTICES AND PERFORMANCE OF DISTRIBUTOR FIRMS IN KENYA

Abstract

The research study focused on logistics management practices and performance of distributor firms in Kenya. The study specifically looked at the inventory management practices, transport management practices, warehousing practices and transportation management practices. A descriptive research design was used. The target population of the study included all heads of procurement department who were able to answer all questions regarding their procurement department, inventory department, warehouse department and transport and logistics department within the distributor firms in Kenya. Primary data and secondary data were used in collecting data, it was collected using structured questionnaires and it was captured using a 5-point Likert scale. There were 265 distributor firms. These formed the target population of the study. The study adopted a Slovenes formula to calculate sample size of 159. Both descriptive and inferential results were used to achieve the study objectives. The results of the study were presented in form of tables and charts. SPSS version 21 was used to produce frequencies, descriptive and inferential statistics was used to come up with the conclusions and the summary concerning the population. Inferential analysis entailed the use of correlation and regression analysis. A multiple regression model was used. All statistical tests were conducted at 5% level of significance. The findings of correlation and regression analysis showed that there was a positive and significant association between order management practices, transportation management practices and performance of distributor firms. The study concluded that order management practices such as establishing effective order processing practices, efficient order picking system in the organization, use of order listing to manage orders and establishing an order shipping practice in the organization leads to a significant increase in performance. Finally, the study concluded that transportation management practices such as outsourcing of transport services when there is urgency, consolidation of shipment by the organization, management of outbound logistics in the organization, use of multi modal transportation increases performance. The study recommended that the organization should outsource transport services during urgency. The study further recommended that the distributor firms should establish effective order processing practices.

Key words: order management practices, transportation management practices, performance

CITATION: Abebe, D. A., & Miroga, J. (2020). Logistics management practices and performance of distributor firms in Kenya. The Strategic Journal of Business & Change Management, 7(3), 327 – 338.