Harrison Njeru Odhiambo, Dr. Noor Ismail Shale


The performance of distribution logistics impacts tremendously on the performance of an entire organization, this is mainly because it links the organization to the customers and thereby has much influence on customer satisfaction which influences customer loyalty, arguably the single most important asset of an organization. Warehouses are a key aspect of modern supply chains and play a vital role in the success, or failure, of Distribution Firms. The general objective of this study is to establish the effect of warehouse consolidation on performance of distribution firms in Nairobi City County, Kenya. The study specifically focused on the effect of product placement, and warehouse layout on performance of distribution firms in Nairobi City County, Kenya. This study was anchored on institutional theory and the theory of Constraints (TOC). This study used a cross-sectional survey design. The target population in this study was 255 managers working in procurement, operations, distribution/logistics, and warehouse and finance departments in the 51 distribution companies in Nairobi City County. From the target Yamane (1969) sample size formula was used to select a sample size of the population. The study used simple random sampling to select 155 from the entire population. This study used both closed-ended questions and open-ended questions to collect the data. The pilot study comprised of 15 respondents which makes up 10% of the respondents. The pilot study was done at selected distribution firms at Nairobi City County. The researcher collected data using questionnaires, coded them, and enter them into the Statistical Package for Social Sciences version 26 for analysis. The descriptive statistical techniques of frequency, mean, and standard deviation was used to analyse the quantitative data acquired. The results are now displayed using frequency distribution tables, which kept track of how many times a score or response appears. The results were displayed using frequency distribution tables, which kept track of how many times a score or response appears. Qualitative data collected was analysed using content analysis and presented in prose form. Inferential statistics including regression and correlation analysis were used in the study. The study concludes and recommends that warehousing consolidation has effect on   performance of distribution firms in Nairobi City County, Kenya.

Key Words: Warehouse Consolidation, Distribution Firms, Product Placement, Warehouse Layout, Performance

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