Influence of Logistics Outsourcing on Performance of Large Retail Firms in Nairobi City County, Kenya
Author(s)
Download Full PDF Pages: 01-11 | Views: 869 | Downloads: 202 | DOI: 10.5281/zenodo.3514711
Abstract
The current study sought to establish the influence of logistics outsourcing on the performance of large retail companies in Nairobi County, Kenya. The study adopted a descriptive research design and the targeted 32 large retail companies in Nairobi Central Business, Nairobi County, Kenya. The unit of observation comprised of procurement personnel in the firms. A census was used whereby all the 32 companies were included in the study. A structured questionnaire was used to collect data for the study which was analysed through mixed-method, where both qualitative and quantitative data were incorporated. The findings were presented in form of figures and tables. The study findings established that transport outsourcing and financial services positively and significantly influence performance of large retail firms in Nairobi County. The study recommended that the management of large retail firms should focus on enhancing transport outsourcing practices since the practice bears a positive and significant influence on performance of the firms. The management can achieve this by having transport outsourcing practices that transfer the risks of transportation operations to the logistics provider, that protects the organization from penalties, a Transport Management Software technology provides the custom data you desire, that increases operational control and that makes sure transportation operations never fall victim to the constantly changing supply chain environment. The study also recommends that the management of large retail firms should capitalize on outsourcing financial services since the practice bears positive and significant influence on performance of the firms
Keywords
transport outsourcing, financial services, logistics outsourcing, performance, large retail companies
References
i. Antoniolli, P. D., Ferreira, J., Carvalho, J. V., Tiradentes, R. A. & Batista, C. J. (2015). Outsourcing of logistics transport: A Brazilian leather industry case study. FÓRUM Empresarial, FÓRUM Empresarialol.20 No. 2.
ii. Ballou R H. (2011). Business logistics / Supply chain management. Planning Organising and controlling the supply chain. 5th edition. Pearson-Prentice Hall.USA.
iii. Berggren C. & Bengtsson, L. (2004) Rethinking outsourcing in manufacturing. European Management Journal, 22 (2), 211-223.
iv. Berglund, M., van Laarhoven, P., Sharman, G. & Wandel, S. (1999) Third-party Logistics: Is there a future? International Journal of Logistics Management, 10 (1), 59-70.
v. Berman, B. (2002) Should your firm adopt a mass customization strategy? Business Horizons July-August: 51-60.
vi. Beulen, E., van Fenema, P. & Currie, W. (2005) From Application Outsourcing to Infrastructure Management, European Management Journal, 23 (2), 133-144.
vii. Bhatnagar, R. & Viswanathan, S. (2000) Reengineering global supply chains – alliances between manufacturing firms and global logistics service providers. International Journal of Physical Distribution and Logistics Management, 3 (1), 13-34.
viii. Bhatt, G. (2001) Business process improvements through electronic data interchange systems: an empirical study. Supply Chain Management: An International Journal 6 (2), 60-73.
ix. Bhatt, G.D. (2011). An empirical examination of the effects of information systems integration on business process improvement, International Journal of Operations and Production Management, 20 (11), 1331-1359.
x. Browne, M., Gomez, M. (2011) "The impact on urban distribution operations of upstream supply chain constraints", International Journal of Physical Distribution & Logistics Management, 41(9),896 – 912.
xi. Dwayne Whitten, G., Green Jr, K. W., & Zelbst, P. J. (2012). Triple-A performance. International Journal of Operations & Production Management, 32(1), 28-48.
xii. European Parliament (2017), “Briefing: Fines for Misconduct in the Banking Sector—What is the Situation in the EU?”.
xiii. Faisal, N., Banwet, D., & Shankar, R. (2006). Supply chain risk mitigation: modelling the enablers. Business Process Management, 12(4), 535-552.
xiv. Farahani, R., Rezapour, S., & Kardar, L. (Eds.). (2011). Logistics operations and management: concepts and models. Elsevier.
xv. Götz, M.R. & Tröger, T.H. (2017), “Fines for Misconduct in the Banking Sector—What is the Situation in the EU?,” In-Depth Analysis for the European Parliament, PE 587.401.
xvi. Green, K. J., Whitten, D., & Inman, R. (2011). The impact of logistics performance on organizational performance in a supply chain context. Supply Chain Management: An International Journal, 13(4), 317-327.
xvii. Hasapidis, B. (2011), "Managing customer profitability: the 1, 2, 3s of an effective MCIF strategy", Community Firmer, (10), 36-9.
xviii. Heragu, S. S., & Ekren, B. (2015). Materials Handling System Design. Mechanical Engineers' Handbook.
xix. Hertz, S., & Alfredsson, M. (2003). Strategic development of third-party logistics providers. Industrial marketing management, 32(2), 139-149.
xx. Huo, B., Huo, B., Han, Z., Han, Z., Prajogo, D., & Prajogo, D. (2016). Antecedents and consequences of supply chain information integration: a resource-based view. Supply Chain Management: An International Journal, 21(6), 661-677.
xxi. Kimulu, J.M. (2014). Logistics outsourcing and performance of commercial banks in Kenya Unpublished MBA Project. UON.
xxii. Korosec, R.L. (2009). "Assessing the Feasibility of Supply Chain Management within Purchasing and Procurement." Public Performance & Management Review, 92-109.
xxiii. Marchet, G., Perego, A., Melacini, M., Perotti, S. & Tappia, E. (2012) ‘Logistics outsourcing in the Italian fashion industry: an empirical study’, Paper presented at the International Workshop on Luxury Retail, Operations and Supply Chain Management, Milano, 3–4 December.
xxiv. Mwale, H. (2014). Supply Chain Management Practices and Organizational Performance of Large Manufacturing Firms in Nairobi, Kenya. Unpublished University of Nairobi, Vol.1 no.12.
xxv. Nemoto, T., & Tezuka, K. (2002). Advantage of Third-Party Logistics in Supply Chain Management. Working paper, 72(1), 1-14.
xxvi. Ngonela, D. W., Mwaniki, C., & Namusonge, G. (2014). Drivers of Distribution Outsourcing Practices in Tea Processing Firms in Bomet County. IOSR Journal of Economics and Finance, 4(1), 47-57.
xxvii. Qureshi, M.N., Dinesh, K., & Pradeep, K. (2014). Modeling the logistics outsourcing relationship variables to enhance shippers' productivity and competitiveness in logistical supply chain, International Journal of Productivity and Performance Management, 56 (8),689 – 714.
xxviii. Solakivi, T., Töyli, J.& Ojala, L. (2013) ‘Logistics outsourcing, its motives and the level of logistics costs in manufacturing and trading companies operating in Finland’, Production Planning and Control: The Management of Operations, 24 (4-5),388–398.
xxix. Solakivi, T., Töyli, J., Engblom, J., & Ojala, L. (2011). Logistics outsourcing and company performance of SMEs. International Journal, 4 (2) 131 – 151.
xxx. Sum, C., Yang, K., Ang, J., & Quek, S., (2015). “An analysis of material requirements planning benefits using alternating conditional expectation”, Journal of Operations Management 13 (1), 35–48.
xxxi. Thomas R,. & Julio N. (2014). The Rapid Rise of Supermarkets in Developing Countries: Induced Organizational, Institutional, and Technological Change in Agrifood Systems .Michigan State University.
xxxii. Vishal.V.B., Nitin, P., Satiish, B. C., & Nishant, G. J. (2013). International Journal of Engineering Science and Innovative Technology (IJESIT). Third Party Logistical Obstacles in Manufacturing Industries, 2(3), 190-201.
xxxiii. Waugh, B., & Luke, R. (2011). Logistics outsourcing by manufacturers in South Africa. Journal of Transport and Supply Chain Management, 5(1), 337-360.
xxxiv. Zaheed, H., Abdullahil A., & Choudhury A. (2010) “Effect of Information and Knowledge Sharing on Performance: A Survey Based Approach”, (3) 1, 45-78
Cite this Article: