OUTSOURCED LOGISTICS SERVICES ON THE PERFORMANCE OF ALCOHOLIC BEVERAGES MANUFACTURING FIRMS IN KENYA

Esther Nyathira Kiarie, Dr. Duncan Ndung’u Nderui

Abstract


The purpose of the study was to determine the influence of outsourced logistics services on the performance of alcoholic beverages manufacturing firms in Kenya. The study established the influence of outsourced transport services and outsourced clearing and forwarding on the performance alcoholic beverages manufacturing firms in Kenya. To achieve this, the researcher reviewed both theoretical and empirical literature and propose research methodology that addressed the gaps identified in literature as well as answer the stipulated research questions. The study employed a descriptive research design. The study targeted 130 respondents including procurement managers, finance managers, operations managers, transport & logistics managers, warehouse/storage managers, sales and marketing managers and internal auditors from spirits manufacturers. Data was collected using self-administered questionnaires. Pilot study was carried out to establish the validity and reliability of the research instruments and the findings affirmed that the research instrument is both valid and reliable, ensuring the accuracy and consistency of the data to be collected in the main study. The instruments were designed appropriately according to the study objectives. The data collected was analyzed by use of descriptive and inferential statistics. The study used multiple regression and correlation analysis to show the relationship between the dependent variable and the independent variables. The data collected was keyed in and analyzed by use of Statistical Package of Social Sciences (SPSS). The findings were presented in tables and figures. The findings revealed that logistics services significantly contribute to firm performance, with clearing and forwarding services having the most substantial impact (β = 0.331, p < 0.001), followed by transport services (β = 0.308, p < 0.001). These results underscore the importance of efficient logistics management in enhancing operational efficiency, reducing costs, and improving customer satisfaction. The study concludes that strategic outsourcing of these services is crucial for maintaining a competitive edge and achieving sustained business success. Based on these findings, the study recommends that firms should invest in advanced technological solutions for order processing, select reliable transport and warehousing partners, and engage proficient clearing and forwarding agents to optimize their logistics operations. These targeted strategies will help firms maximize the benefits of outsourcing, thereby boosting their overall performance in the market.

Key Words: Outsourced Logistics Services, Outsourced Transport Services, Outsourced Clearing and Forwarding, Performance, Alcoholic Beverages Manufacturing Firms 


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