EFFECT OF LOGISTIC MANAGEMENT ON DISTRIBUTION PERFORMANCE IN FOOTWEAR MANUFACTURING FIRMS IN KENYA

Nyanumba Jared Makworo, Ndeto Charles Kyalo

Abstract


The study sought to examine how logistics management influences distribution performance in Kenyan footwear manufacturing firms. The study also sought to examine effect of transport management, inventory management, information flow management and order processing management on distribution performance in footwear manufacturing firms located in Kenya. The on-going study deployed descriptive research design. Moreover, the study population consisted of 326 staff in finance, supply chain, sales/distribution and operations departments in the 11 footwear manufacturing companies in Kenya. This study employed a stratified random sampling in order to select 179 staff from the study population. The study utilized primary data which was gathered using self-administered semi-structured questionnaires. Moreover, a pilot test was performed to examine the reliability as well as validity of research instrument. Questionnaires in on-going study were used to collect qualitative and also quantitative data. Further, qualitative data, which was derived from structured questions, was analyzed using thematic analysis and results presented in a narrative form. Additionally, inferential as well as descriptive statistics were employed to analyze data in the current research through application of statistical software known as SPSS version 22. Moreover, descriptive statistics comprised of frequency, percentage and mean as well as standard deviation. In this study, inferential statistics comprised of Pearson correlation as well as multivariate regression analysis. From the results, the study found that transport management had a significant influence on distribution performance in footwear manufacturing firms in Kenya. In addition, inventory management had a significant influence on distribution performance in footwear manufacturing firms in Kenya. Further, information flow management had a significant influence on distribution performance in footwear manufacturing firms in Kenya. Also, order processing management had a significant influence on distribution performance in footwear manufacturing firms in Kenya. Therefore, the study recommends that footwear manufacturing firms should adopt fleet management system, automated tracking systems and fuel management system to monitor and control firms’ vehicle fuel consumption as well as movement of the firms’ vehicle. Moreover the study recommends that footwear manufacturing firms should adopt inventory management practices such as vendor managed inventory, bar-coding and electronic point of sale. In addition, the managers should adopt vendor managed inventory to optimize the inventory held by the distributor and prevent stocking undesired inventories. Further, managers of the footwear manufacturing firms should adopt information sharing, communication system and communication channels so as to increase efficiency and reduce errors in the distribution process. Moreover, the management should adopt order process management practices such as order processing system, order picking and real time ordering to enable electronic collection of order data as well as accurate and timely delivery of products to distributors, wholesalers and retailers. 


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