ROLE OF SUPPLY CHAIN COLLABORATION ON OPERATIONAL PERFORMANCE OF THIRD PARTY LOGISTICS SERVICE PROVIDERS IN KENYA

Yego Winfred Kipruto, Namusonge Eric

Abstract


The general objective of this study was to establish the role of supply chain collaboration on operational performance of third party logistic service providers in Kenya. Specifically, the study sought to establish the influence of supplier collaboration on operational performance of third party logistic service providers in Kenya; and to determine the effect of customer collaboration on operational performance of third party logistic service providers in Kenya. This research was based on the resource based view theory, and stakeholder theory to explain the relationship between the study variables. The study collected primary data using questionnaires. A descriptive survey design was adopted. The target population included all the 43 third party logistic service providers operating in Kenya as at December 2020.  A census was conducted on all the 43 third party logistic firms. The unit of observation was heads of procurement, operations and finance unit of each third party logistic firm. The total target was therefore 129 respondents. 84 questionnaires were completely filled giving a response rate of 65.12% which was considered adequate for the study. Information assembled was evaluated using descriptive and inferential statistics ranging from frequencies, percentages, correlation and regression. Findings reveal that the 3PL service providers have adopted supply chain collaboration (supplier, internal and customer) to a great extent. The study findings also reveal that supplier collaboration influenced operational performance positively. Further, results illustrate that customer collaboration influenced operational performance positively. The regression and correlation results support the results as there existed a positive and significant relationship between supplier, and customer collaboration with operational performance. The study recommends the need for having 3PL service providers keep adopting supplier collaboration, internal and customer collaboration as this will boost operational performance and lead to business success

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