FACTORS AFFECTING EFFECTIVE LOGISTICS MANAGEMENT IN THE MANUFACTURING INDUSTRY IN KENYA: A CASE OF SAMEER AFRICA LIMITED

NDERUI NDUNG’U, DR. SUSAN WERE

Abstract


Logistics management function is critical to an organizations success, competitive advantage and customer satisfaction. Effective logistics management of goods, services, and works involves certain processes starting from recognition of need, delivery to end users and payment to the suppliers. The study focused on Factors affecting effective logistics management in the manufacturing industry in Kenya a case of Sameer Africa limited. The research objectives of the study were: To find out how inventory management affected effective logistics management in the manufacturing industry in Kenya and to establish how technology affected effective logistics management in the manufacturing industry in Kenya. The study adopted a descriptive survey design and targeting, Sameer Africa Limited. The population of the study targeted 46 logistics employees working in the logistics management department. Primary data was collected by use of questionnaires. Data was analyzed using statistical package for social science (SPSS) software version 20. According to the analysis of findings, (81%) majority of the respondents indicated that in general Technology used was old, outdated and obsolete. Further findings indicated that inventory management system used had a lot of challenges with (95%) majority of the respondents rating it as poor and that they run out of stock weekly. The study established that change in Technology was the most related factor affecting effective logistics management measured in terms of productivity, quick responses and costs reduction followed by Inventory management being the least related. The study recommended that Sameer Africa limited should fully replace the old, outdated and obsolete technology and equipment with modern ones and carry out regular upgrading of Technology. Further the study recommended that there was need for a total overhaul or improvement of the existing inventory management system in order to optimize resources and achieve a balance of not wanting to hold too little as to run out of stock. Finally the study recommended as far as employees demographic characteristics is a concern, that the Human Resource department should motivate and promote employees in the logistics management department in order to reduce high rate of job turnovers.

Key Words: Inventory Management, Technology, Logistics Management, Manufacturing Industries


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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.354

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