INFLUENCE OF THIRD-PARTY LOGISTICS PROVIDERS ON SUPPLY CHAIN PERFORMANCE IN KENYA: CASE STUDY OF EAST AFRICAN BREWERIES LTD

MARY KATANA

Abstract


The purpose of the study was to determine the influence of third-party logistics providers on supply chain performance in Kenya with reference to East African Breweries Ltd.  The target population of interest in this study was 278 staff at East African Breweries Ltd. To achieve the objectives of the study, both primary and secondary data was collected. The data was analyzed by both descriptive and inferential approaches using Statistical Package for Social Sciences software (SPSS). Data was collected through use of questionnaire instrument. The study will help among others, the manufacturers, importers, exporters, the government, Customs Services Department, port operators, logistics and supply chain organizations, clearing and forwarding agents, supply chain professionals and also further studies. The study found that the services they provided had improved supplier’s performance. Respondents were asked if freight forwarding affected supply chain performance in East Africa breweries. 87% indicated yes while 9% indicated no and 5% were not. Respondents were asked if transportation services affected supply chain performance in East Africa breweries 91% indicated yes while 9% indicated no. The study recommended that there was need to strategically analyse the needs of the company and the non-core business so as to make informed decisions of the right logistics services to outsource. It’s paramount to design appropriate logistics management practices in line with the organizations activities hence the improvement of transport efficiency could change the overall performance of the logistics system. Without the linking of transportation, a powerful logistics strategy cannot bring its capacity into full play.

Keywords: Freight Forwarding, Transportation Services, Third Party Logistics Providers, Supply Chain Performance 


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