DISTRIBUTION MANAGEMENT PRACTICES AND PERFORMANCE OF LOGISTICS FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
Logistics firms play a crucial role in the economic development of Kenya, particularly in facilitating trade and ensuring the smooth movement of goods throughout the country. However, logistics firms in Nairobi City County face significant challenges that impede their overall performance. Recent studies indicate that up to 30% of logistics companies in the region struggle with inefficiencies due to outdated technology, inadequate infrastructure, and poor management practices. The general objective of the study was to assess the influence of distribution management practices on performance of logistics firms in Nairobi City County, Kenya. Specifically, the study sought to assess the influence of order fulfillment on performance of logistics firms in Nairobi City County, Kenya and to determine the influence of warehousing on performance of logistics firms in Nairobi City County, Kenya. A descriptive cross sectional survey research design is therefore proposed for this study. This study targeted a total of 250 firms operating in Nairobi County. The study therefore targeted 1500 management employees working in these firms. Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 400 respondents. The study collected primary data for analysis. structured questionnaires. The questionnaires were pretested to ensure clarity and content validity prior to them being administered. The collected research data was checked for any errors and omissions, coded, defined and then entered into Statistical Package for Social Science (SPSS Version 23 Descriptive statistics were used to portray the sets of categories formed from the data. The study used multiple linear regression analysis to test the statistical significance of the various independent variables. The study concludes that order fulfillment has a positive and significant effect on performance of logistics firms in Nairobi City County. The study also concludes that warehousing has a positive and significant effect on performance of logistics firms in Nairobi City County. Based on the findings, the study recommends that the management of logistics firms in Kenya should adopt a customer-centric approach by implementing an integrated order management system (OMS). This system should streamline the entire fulfillment process by centralizing information and automating workflows. By providing real-time updates on order status and inventory availability, the OMS can improve communication with customers, leading to increased transparency and trust.
Key Words: Distribution Management Practices, Order Fulfillment, Warehousing, Performance of Logistics Firms In Nairobi City County, Kenya
Full Text:
PDFReferences
Aadebayo, I, T & Aworemi, J. R. (2021). Distribution management practices and firms’ performance in Nigeria. Retrieved From, https://ieomsociety.org/proceedings/.
Ali, K, Showkat, N & Chisti, K. A. (2022). Impact of distribution management practices on operating profits: evidence from India. Journal of Economics, Management and Trade, 28(9), 22-26.
Gacuru,W & Kabare,K (2020) factors affecting order fulfillment in performance of trading and distribution firms based in Jomo Kenyatta international airport area. International Academic Journal of Procurement and Supply Chain Management 1(5) 50-71
Gatobu, H F & Waiganjo,E (2021) Role of order fulfillment on Customer Satisfaction in the Printing Industry in Kenya: A Case Study of Morven Kester East Africa Limited: International Journal of Academic Research in Business and Social Sciences 4(10) 128-143
Gautié,J, Jaehrling,K & Coralie,P (2020) Neo-Taylorism in the Digital Age: Workplace Transformations in French and German Retail Warehouses. Département des relations industrielles, Université Laval 75(4) 774-795
Giathi,M & Karanja,S G (2020) role of fleet management on supply chain performance in logistics firms based in Nairobi industrial area, Kenya. Strategic journal of business and change management. 3(3)402-425.
Gudda, K. O & Deya, J. (2020). Effect of distribution management practices on the performance of small and medium sized enterprises in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6(2), 1870–1886.
Kamau, L W. & Kagiri, A W. (2021). Influence of inventory management practices on organizational competitiveness: A case of Safaricom Kenya Ltd. International Academic Journal of Procurement and Supply Chain Management, 1 (5), 72-98
Karimi, E & Rafiee, M. (2023). Analyzing the Impact of distribution management practices on Organizational Performance through Competitive Priorities (Case Study: Iran Pumps Company). International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 1-21.
Mutua, M., Ngugi, P. & Odhiambo, R. (2020). Influence of Lean Warehousing Practices on Performance of Large Manufacturing Firms in Kenya. Journal of International Business, Innovation and Strategic Management, 1(8), 41 - 57
Mwangi, N W (2020) the influence of order fulfillment on the performance of manufacturing firms in kenya. Retrieved from https://ir.jkuat.ac.ke/bitstream/handle/123456789
Mwende, V & Nyaribo, W. M. (2023). Effect of distribution management practices on organizational performance of parastatals in Kenya. American Journal of Humanities and Social Sciences Research, 7(9), 196-202.
Mwizerwa, J. (2024). Effect of distribution management practices on organizational performance in Rwanda - a case of Gorilla Logistics Limited. International Journal for Research Trends and Innovation, 9(5), 148-158.
Nzeyimana, A & Gitahi, N. (2022). Distribution management practices and performance of public institutions in Rwanda: a Case of Rwanda Biomedical Center. Journal of Procurement & Supply Chain, 6(1), 37-57.
Rahman,W a& Wu,X(2021) Logistics order fulfilment outsourcing in China: the manufacturer-cum-supplier perspective. Supply Chain Management: An International Journal 16(6) 462–473
Samita, M. N., Kadima, J., & Juma, D. (2020). Influence of transport management practices on procurement performance of manufacturing firms in Kenya. The Strategic Journal of Business & Change Management, 7 (4), 1075 – 1085
Sang, F. & Kihara, A. (2021). Effect Of Inventory Management Practices On Performance Of Manufacturing Firms In Kenya: A Case Study Of Sameer Africa. International Journal of Arts and Entrepreneurship. 5 (10) 94-113.
Sarwar, A, Zafar, A, Hamza, M. A & Qadir, A. (2021). The effect of distribution management practices on firm sustainability performance: Evidence from Pakistan. Uncertain Supply Chain Management 9(2021), 31–38.
Shakita, J & Ndeto, C. (2021). Influence of distribution management strategies on the performance of cement manufacturing firms in Machakos County; Kenya. International Research Journal of Business and Strategic Management, 2(2), 315-333.
Shobe, E. O & Ouma, D. (2020). Influence of distribution management practices on procurement performance of county government of Kakamega, Kenya. The Strategic Journal of Business & Change Management, 7(3), 80–88
Tan, C. L, Yeo, S. F & Low, C. H. (2020). Distribution management practices and organizational performance: an empirical study in Malaysian manufacturing firms. Jurnal Pengurusan, 52(2020), 19–32.
Vuyokazi,M (2023) Effect of Lean Six Sigma on Order Fulfilment Process: Evidence from Manufacturing Companies in Gauteng, South Africa. Retrieved from https://etd.cput.ac.za/bitstream/20.500.11838
Wanjiru,G K & Ngugi,P K (2022) effect of e-warehousing on performance of public health institutions in Kiambu county, Kenya. International Journal of Social Sciences and Information Technology 5 (4) 103-113
Zilait, H. A, Ibrahim, A. R, Chandran, V. G. R & Sundram, V. P. K. (2020). Distribution management practices: an empirical study on manufacturing industry in Malaysia. Journal of Systems and Information Technology, 12(3), 210-221.
Refbacks
- There are currently no refbacks.