ROLE OF FLEET MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN LOGISTICS FIRMS BASED IN NAIROBI INDUSTRIAL AREA, KENYA
Abstract
Fleet management plays a very significant role as it manages the flow of goods along the supply chain and therefore helps in controlling supply chain costs. The researcher carried out this study with the general objective of establishing the role of fleet management on supply chain performance. Other objectives included: To assess the role of Information Communication Technology on supply chain performance, to determine the role of customer relationship management on supply chain performance, to find out the role of vehicle routing and scheduling on supply chain performance and to examine the role of vehicle repair and maintenance on supply chain performance in logistics firms in Nairobi industrial area. A cross sectional survey research design was used in the study whose targeted study population comprised of 65 respondents who were all employees of the 20 logistics firms’ in the industrial area of Nairobi. The researcher used random sampling method to get the respondents to participate in the study since it gives every respondent a chance to participate in the study; a sample size of 80% was used in the study. Data was collected by use of questionnaires which were administered by the researcher and the collected data was edited, coded, classified and tabulated using Statistical Package for Social Sciences 23 (SPSS 23). Descriptive statistics and regression analysis results revealed that ICT, Customer Relationship Management, vehicle routing and scheduling and vehicle repair and maintenance affected supply chain performance in logistics firms in Kenya. According to the regression analysis results it was concluded that ICT had the greatest effect followed by vehicle routing and scheduling, vehicle repair and maintenance and lastly customer relationship management had the least effect on supply chain performance. The study recommendations included: logistics firms should heavily invest in ICT e.g. installation of onboard vehicle communication systems, vehicle safety technology and fleet management systems. Customer relationship management to be enhanced by use of strategies such as timely deliveries, effective safety measures for customer consignments and proper management of customer complains. Management of logistics firms should consult drivers in route planning, provide guidance and route maps to drivers navigating unfamiliar routes and use of computerized vehicle routing and scheduling system. Logistics firms should recruit drivers with basic knowledge in vehicle mechanics, strict adherence to vehicle repair and maintenance schedule and logistics firms with large fleet should establish an in-house repair and maintenance facility since it is economical.
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i3.302
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