FIFTH PARTY LOGISTICS AND PERFORMANCE OF THE E-COMMERCE FIRMS IN NAIROBI CITY COUNTY, KENYA

Adrian Ogol, Dr. Peter Gikonyo

Abstract


This study focuses on Fifth Party Logistics and Performance of E-Commerce Firms in Nairobi City County. Fifth Party Logistics represents a modern logistics trend that leverages specialized software platforms to deliver comprehensive services to customers and shippers. While 5PL offers significant benefits, such as cost savings, improved visibility and enhanced customer satisfaction for e-commerce firms in Nairobi City County, these firms continue to face challenges like Order fulfilment and seamless delivery operations. The fifth party logistics model enables e-commerce firm s to have their logistical needs handled from initiation to delivery.  To explore the relationship between Fifth Party Logistics and Performance of e-commerce firms in Nairobi City County, the study was guided by the following objectives: to examine the impact of customized warehousing of fifth party logistics and performance of the e-commerce firm in Nairobi city county; To assess the benefits of lean logistics of fifth party logistics and performance of e-commerce firms in Nairobi city county. The study adopted a descriptive research design and targeted e-commerce firms operating within Nairobi City County. Data was collected from a  sample of 30 respondents and analyzed using SPSS Version 30. The findings revealed strong positive correlations between 5PL practices and firm performance. Regression analysis indicated that the practices collectively accounted for the variation in performance among the firms studied. Despite infrastructure and implementation challenges, the result confirms that effective use of 5PL significantly enhances delivery efficiency, reduces operation costs and improves customer satisfaction. The study concludes that the adoption of 5PL is a key strategic approach for improving the competitiveness and efficiency of e-commerce operations. It recommends greater investment in route optimization tools, automated warehousing systems, staff training on lean process, and full-scale integration of logistics technologies. Further research is suggested to explore 5PL practices across other counties and sectors, and to examine the long-term performance outcomes of technology driven logistics models.

 

Key Words: Fifth Party Logistics, Performance of E-Commerce Firms, Nairobi City County, Customized Warehousing, Lean Logistics 


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