INFLUENCE OF LOGISTICS MANAGEMENT ON CUSTOMER SATISFACTION IN AGRICULTURAL SECTOR IN KENYA: A CASE OF AMIRAN KENYA LIMITED

Abstract

The objective of the study was to establish the effect of logistics management on customer satisfaction in the agricultural sector in Kenya. The specific objectives of the study were to establish the effect of delivery of goods, ordering processing, material handling, and inventory management on customer satisfaction at Amiran Kenya Ltd. The target population was 200 customers from five locations: Nairobi, Meru, Loitokitok, Narok and Eldoret. Through stratified random sampling, a sample of 100 customers was selected to take part in the study. A pilot study was conducted to test the validity and reliability of data collection instrument. Five distribution centers were subjected to pilot study where the Cronbach’s alpha value of 0.9 was adopted. The five centres were part of the target population but not the sample size. Questionnaire was used as the main data collection instrument and the researcher administered questionnaires to 100 sampled respondents where only 83 filled and returned giving a response rate of 83%. The data analysis included descriptive and inferential statistics where the findings were presented in table and figures. The findings revealed that delivery and order processing were statistically significant. Delivery of goods and order processing had significant impact on customer satisfaction than material handling, order processing and inventory management. It was established that logistics service was associated with the right product, at the right time, at the right quality, in the right condition, and in the right place. The study revealed that delivery of goods somewhat affect customer satisfaction. The study also found that order processing had substantial effect on customer satisfaction. The study concluded that delivery of goods significantly affects customer satisfaction. The study also concluded that materiel handling lightly and significantly affects customer satisfaction. The study further concluded that order processing had substantial and significant effect on customer satisfaction. Finally the study concluded that inventory management has a great and significant effect on customer satisfaction. Based on the findings, the study recommends the following approaches to increasing logistics efficiency: encourage feedback, automate communication technologies, optimize transportation, and maximize storage. There is also a need for the company to improve its delivery service, material handling techniques and order processing. The study also recommends that the company should respond quickly to the customers queries as well as communicating to customers about change in delivery and transportation schedules.