Effect Of Logistics Management Practices On Supply Chain Performance Of Cement Manufacturing Firms In Kenya

Abstract

The objective of the study was to determine the effects of logistics management practices on supply chain performance of cement manufacturing firms in Kenya. The study specifically sought to establish the influence of warehousing management,q information flow management, transportation management and inventory distribution management on supply chain performance of cement manufacturing firms in Kenya. The study was anchored on Resource Based Theory, Network Theory and Transaction Cost Theory. The descriptive design was applied and the target population was six cement manufacturing firms in Kenya. The population comprised of 72 management staff in the various departments which are involved in logistics management, in the targeted firms. This was a census study; hence all the 72 respondents formed the sample size for the study. The study collected primary data through use of a questionnaire which was administered to the management staff in the targeted six cement manufacturing firms in Kenya. The questionnaire was piloted to check for for reliability and validity. The collected data was analyzed through descriptive and inferential statistics. The descriptive statistics included means, standard deviation and frequency distribution while in inferential statistics. A regression analysis was also conducted to determine the relationship between variables.The analyzed data was presented using pie charts,bar charts,percentages and frequency tables. The study found out that the cement manufacturing firms had adequate warehouse and storage space to hold their stock; and that there was adequate utilization of the storage facilities in the factories. It was found that information flow management had improved production processes, stock control, and distribution of products to the market, which improved supply chain performance. Majority of the respondents indicated that transport management and inventory distribution management influenced supply chain performance in cement manufacturing firms to a great extent. The study concludes that warehousing management influences supply chain performance of cement manufacturing firms in Kenya to a great extent (β = 0.137, p=0.028). The also concludes that information flow management has a positive effect on supply chain performance of cement manufacturing firms in Kenya (β = 0.468, p=0.001). Inventory distribution management also has a positive effect on supply chain performance of cement manufacturing firms in Kenya (β = 0.375, p=0.001). The study recommends that management of cement manufacturing firms should consider to outsource some logistics services such as transport due to its advantages and its possible influence on operational performance, as it enables the firms to focus on its core competencies. The study also recommends that the cement manufacturing firms should continually communicate, network and share information with value chain partners so as to enable the firms understand the market demand. Effective inventory distribution management strategies would also enhance speed in delivery of goods to the market, production process, and also improve responsiveness and flexibility of the firms.