TRANSPORT OPTIMIZATION AND PERFORMANCE OF DISTRIBUTION FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
Transport costs in Kenya are notably high, accounting for approximately 40% of the cost of goods, compared to the global average of 8-12%, as reported by the World Bank. These elevated costs are largely attributable to inefficiencies within transport operations The general objective of the study was to establish the influence of transport optimization on performance of distribution firms in Nairobi City County, Kenya. Specifically, the study sought to assess the influence of route optimization on performance of distribution firms in Nairobi City County, Kenya, to assess the effect of load optimization on performance of distribution firms in Nairobi City County, Kenya. The study adopted descriptive research design. The unit of analysis for this study was the distribution firms. The unit of observation of this study was management employees. The target population was 1061 distribution firms. The Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 290 respondents. The stratified random sampling method was adopted to select the study sample size. Data was collected using a self-administered semi-structured questionnaire. Qualitative reports were analysed in content analysis and presented in form of essays. Descriptive statistical analysis included frequency, percentages, mean and standard deviation and used to analyze quantitative data. SPSS version 26 was used for analysis. Inferential statistical analysis to be used was multiple regression and correlation analysis and test the relationship between the study variables. The findings were displayed in tables and figures. The study concludes that route optimization has a positive and significant influence on performance of distribution firms in Nairobi City County, Kenya. In addition, the study concludes that load optimization has a positive and significant influence on performance of distribution firms in Nairobi City County, Kenya. Bases on the findings, the study therefore recommends that the management of distribution firms should implement real-time route monitoring and adjustment systems. By leveraging advanced technologies such as GPS tracking, predictive analytics, and machine learning algorithms.
Key Words: Transport Optimization, Performance of Distribution Firms, Route Optimization, Load Optimization
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