LOGISTICS MANAGEMENT STRATEGIES AND PERFORMANCE OF FOOD AND BEVERAGE FIRMS IN NAIROBI CITY COUNTY, KENYA

Bernard Mwendwa Nzuma, Dr. Charles Ndeto

Abstract


The current world business environment has undertaken several changes creating more and more complexities and uncertainties. In the changing environment which characterizes the global economy today, firms face severe competitive pressure in doing business better, faster, and low priced to cope with the growing number of challenges arising from the environment and increase their ability to adapt. Logistics is a core activity with implications on the operations of an organization together with being an activity which cuts across all the departments in an organization. The main objective of the study was to analyze the influence of logistics management strategies on the performance of food and beverage firms in Nairobi city county, Kenya. The specific objectives of the study were to establish the influence of fourth party logistics, virtual logistics, logistics collaboration and reverse logistics on performance of food and beverage firms in Nairobi City County. Descriptive research design was used and a census sampling technique with a target population of all the 86 food and beverage firms in the Nairobi County, Kenya registered under the Kenya Association of Manufacturers as at December 2022. The head of logistics from each firm were the focus unit of perception. Primary data was collected by use of questionnaires. A pilot test was conducted to determine the validity and reliability of the data collection instrument. Collected data was analyzed with help of Statistical Package for Social Sciences (SPSS) Version 24 using descriptive statistics including frequencies, percentages, mean and standard deviation and inferential statistics which include regression and correlation analysis. The analyzed data was further presented in tables and figures. The study findings revealed that there exists a relationship between logistics management strategies and performance of food and beverage firms with a positive correlation coefficient between fourth party logistics (r=0.176), virtual logistics (r=0.086), logistics collaboration (r=0.187), reverse logistics (r=0.447) performance of food and beverage firms. The study concluded that use of fourth party logistics strategies, virtual logistics, logistics collaboration and reverse logistics strategies had a positive influence on the performance of food and beverage firms. The study further recommended the need for adopting fourth party logistics strategies, virtual logistics, logistics collaboration and reverse logistics strategies as this will boost performance of the food and beverage firms and lead to business success.

Keywords: Fourth Party Logistics. Virtual Logistics, Logistics Collaboration and Reverse Logistics.

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References


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